26 July 2019

2019- n° 195

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

In July 2019, many more developers than in April 2019 deem that the demand for new dwellings is high. The corresponding balance of opinion has increased sharply, but remains below its long-term average.

In July 2019, the outlook for housing starts for the next three months are unchanged. The corresponding balance is stable, a shade below its long-term average. In detail, the balance on housing starts for sale has risen and has gone above its long-term average while that on housing starts for rent has fallen back and has gone slightly below its own. At the same time, more developers than in April 2019 have indicated an increase in unsold dwelling stocks. The corresponding balance has picked up and has returned above its long-term average.

More developers than in April have indicated a rise in the average price of new dwellings for sale; the corresponding balance of opinion has increased again and has exceeded its long-term average even more, at its highest level since January 2008. About funding, more developers than in last April consider that downpayment to acquire a new dwelling has increased during the last few months: the corresponding balance has risen again and stands above its long-term average. Likewise, more developers than in last quarter think that the financing capacity to purchase new housing will increase over the next quarter. The corresponding balance of opinion has increased again and stands largely above its long-term average, at its highest level since December 2017.