26 April 2019

2019- n° 107

In April 2019, developers' opinion on demand for new dwellings improves sharply Quaterly business survey in the real-estate development - April 2019

In April 2019, far fewer developers than in January 2019 deem that the demand for new dwellings is low. The corresponding balance of opinion has bounced back strongly after three quarters of decline, but remains below its long-term average.

In April 2019, the outlook for housing starts for the next three months has improved. The corresponding balance has recovered sharply and has almost returned to its October level, remaining however below its long-term average. In detail, the balance on housing starts for sale has risen but is still below its long-term average while that on housing starts for rent has recovered more significantly and has returned above its own. At the same time, fewer developers than in January 2019 have indicated an increase in unsold dwelling stocks. The corresponding balance has decreased again and has gone below its long-term average.

Many more developers than in January have indicated a rise in the average price of new dwellings for sale; the corresponding balance of opinion has bounced back after three consecutive quarters of decline and has almost returned to its level from a year ago, above its long-term average. About funding, more developers than in January 2019 consider that downpayment to acquire a new dwelling has increased during the last few months: the balance has risen and has exceeded its long-term average. Likewise, many more developers than in January 2019 think that the financing capacity to purchase new housing will increase over the next quarter, the balance going above its long-term average.