Monday property news update
The new lockdown’s housing market impact, the global property rethink and the outlook for classic car investment
3 minutes to read
The initial impact of the new restrictions
The announcement of a second lockdown appears to have had a small dampening effect on the housing market's momentum, in part due to some initial confusion around whether the market was remaining open, writes Tom Bill.
The number of viewings that took place in the first four days of last week was 15% lower than the same period a week earlier. However, the number of properties being appraised for sale was 38% higher.
Anecdotal evidence suggests the new restrictions are likely to further underpin the search for more space by house buyers, and momentum appears to be holding for transactions already underway. If the second lockdown is not extended, it feels likely it will put a small dent in the performance of a resurgent property market, but little more. The Times, meanwhile, calls for an extension to the Stamp Duty Holiday.
Global prime property prices hold firm
The mass re-think among homeowners considering how and where they want to live following lockdowns is underpinning prime property prices across global cities.
The Knight Frank Prime Global Cities Index increased by 1.6% in the year to Q3 2020, with 62% of cities continuing to see prime prices increase year-on-year, writes Kate Everett-Allen. Nonetheless, the percentage of cities registering annual price declines is creeping up, from 23% at the end of 2019 to 38% in Q3 2020.
Traditional safe havens, countries that are considered to have handled the pandemic efficiently, plus those markets that are already witnessing an economic rebound have moved higher in the rankings.
The resurgent virus
Global coronavirus infections exceeded 50 million on Sunday, with the past 30 days accounting for a quarter of the total, according to a Reuters tally. The numbers included 20,572 new cases in Britain yesterday, down slightly on the previous day.
Europe is logging about 1 million new infections every three days or so, a little over half the global total.
The spread is taking its toll on the UK's business output and confidence, which both fell last month for the first time since April’s lockdown, according to a report by BDO that takes a weighted average of the results of the UK’s main business surveys, including CBI industrial trends, the Bank of England agents’ summary of business conditions and PMI data from IHS Markit.
Post-election markets
Investors took little notice of rising Covid numbers last week, as global shares headed for a record high amid optimism about the outlook under a Joe Biden presidency. The China’s yuan had its best week since 2017.
These are bets based on a Biden win with Republicans holding onto the Senate. That scenario would create a steadier hand in the Oval Office and a Congress that would check the impulse to raise taxes or regulations, investors said.
From pedal power to battery power
Classic cars have been one of the top performers in the Knight Frank Luxury Investment Index, but what does the future hold as environmental regulations tighten?
For a new Intelligence Talks podcast, Andrew Shirley speaks to His Royal Highness Prince Michael of Kent about eight decades of classic car adventures and what comes next. Plus, hear from James Knight, managing director at Bonhams UK, on the impact of the pandemic on the auction market, why the market for classic cars has stabilised and what it's like to rent the Royal Albert Hall for 24 hours to sell a £5.5 million Bugatti.
Listen now on Spotify, Acast or Apple. Our other Intelligence Talks podcast episodes are also available on our website.
In other news...
In a new Rural Update, Andrew Shirley checks in on the future of food and farming and the environment, which is set for widespread change.
Plus, China expects less volatility but tough relations under Joe Biden, Dubai business conditions sour and finally, the PM enters Brexit endgame that could define his premiership.