Knight Frank Daily Update Monday 29th June
What next for UK property, the viability of comfort cooling and the outlook for Hermès handbags
2 minutes to read
Good morning,
Need to know
The number of Covid-19 cases confirmed globally passed 10 million over the weekend. New cases continue to decline across most of Europe, which stands in contrast to Brazil, India, and the south and west of the US, where concerning upticks are taking place.
Oil prices fell for a second session on concerns some governments may need to reintroduce restrictions to curb outbreaks.
The same concerns led a dip in Asian shares overnight, offsetting signs that China's economy is recovering - Chinese industrial companies posted their first profits for six months in May.
On the Brexit front, Britain’s chief negotiator, David Frost, and the EU’s deputy chief negotiator, Clara Martinez Alberola, will meet in person in Brussels on Monday for the first time since March.
According to Bloomberg, a video call on June 15 between Boris Johnson and the EU’s leadership, in which he convinced them he wanted a deal, has injected fresh momentum. EU officials say it was the moment they had been waiting for.
The property market
Over recent weeks we've covered a surge in demand across UK property markets as they've reopened.
Tom Bill this morning takes a sober look at what happens next, including how demand in the housing market translates into exchanges, whether administrative snags will lengthen deal times, and the role of 'Covid clauses'.
We'll get more information on the trajectory of the recovery later today when the Bank of England releases data on mortgage lending that took place during May.
As the UK prepare for the July 4th reopening of pubs, restaurants, cinemas, and hairdressers, Stephen Springham considers what that will mean in practice, and explains why he thinks the pace of recovery in pubs will outstrip that of restaurants.
Knight Frank this morning publishes a topical report alongside MSMR Architects and Core Five cost consultants that reveals comfort cooling is only financially viable in London residential schemes with values of around £1,000 per sq ft and above.
Andrew Shirley's rural update has an interesting poll of Rural Report 2020 readers, which shows most believe moves to combat climate change will be beneficial for their businesses.
Finally - at the end of 2019 we introduced Hermès handbags into our Luxury Investment Index (KFLII), and they were the year's top performer. Andrew Shirley revisits the topic this morning, and finds buyers are increasingly expecting what some in the auction industry are calling a ‘Covid price'.
Anna Ward has more on the luxury handbag market in the latest Intelligence Talks podcast. Anna is joined this morning by Christie’s head of Handbag sales Rachel Koffsky, Seb Duthy from Art Market Research, Andrew Shirley and Flora Harley. Listen on Apple, Spotify and Acast.
If you have any questions, please contact me, or the team.