27 October 2020

2020- n° 272

In October 2020, real estate developers’ opinion on demand for new dwellings has deteriorated Quaterly business survey in the real-estate development - October 2020

In October 2020, the real estate developers’ opinion on demand for new dwellings is more deteriorated than in July and the corresponding balance of opinion has moved away from its long-term average.

In October 2020, the prospects for housing starts for the next three months have weakened. The corresponding balance of opinion has fallen and has gone down below its long-term average. In detail, the balance on housing starts for sale has gone down below its average, whereas that on housing intended for rent, also decreasing, stays above its long-term average.

At the same time, much fewer real estate developers than in July 2020 have indicated an increase in their unsold dwelling stocks. The corresponding balance has decreased strongly and has gone down below its long-term average.

Real estate developers are more numerous than in July to indicate a rise in the average price of new dwellings for sale. The corresponding balance of opinion has increased and stands well above its long-term average. About funding, more developers than in July have considered that downpayment to acquire a new dwelling increased during the last three months: the corresponding balance has increased and stands above its long-term average.

Finally, as many developers as in the previous quarter think that the financing capacity to purchase new housing will decrease over the next three months. The corresponding balance of opinion is stable: it stands slightly below its long-term average, while it had exceeded it largely from April 2019 to January 2020.