Buyer demand continues to rise!

• Buyer enquiries indicator hits three-year high
• Sales and price continue to increase
• Rents rise for a third successive report

The October 2021 RICS/Ci PHMS results are consistent with another solid month for activity across the housing market. That said, the lack of new instructions becoming available remains an issue, with contributors reporting limited stock levels at present. In the lettings market, rents have now increased in each of the past three months, marking a noteworthy
turnaround in relation to the softer trends being cited at the start of the year.

At the headline level, a net balance of +25% of respondents saw an increase in new buyer enquiries over the month. This is up from a reading of +18% last time and marks the strongest return for this indicator since May 2018. When disaggregated, the latest survey data points to demand rising at the sharpest rate across Lisbon (in net balance terms), while the pick-up was a little more modest in comparison across Porto and the Algarve.

Alongside this, the headline agreed sales indicator remained in positive territory for an eighth month in succession, with a net balance of +15% of contributors noting an increase in sales during October (easing slightly from +21% beforehand). Going forward, near term sales expectations still signal a positive trend ahead, although this series has moderated from a recent high of +32% in August to +19% this time out.

Meanwhile, new instructions have shown no sign of improvement over recent months, with the latest net balance coming in at -20% (identical to the reading posted in September). As such, the limited stock available on the market is a significant factor in underpinning house price growth currently. Indeed, at the aggregate level, a net balance of +32% of respondents reported an increase in house prices over the latest survey period. Looking ahead, a net balance of +57% of survey participants expect house prices to rise further over the coming twelve months (the strongest reading for this indicator since August 2018).

In the lettings market, tenant demand continued to rise in October, evidenced by a net balance of +19% of contributors citing an increase. At the same time, the flow of new landlord instructions deteriorated, with the net balance coming in at -16%. Consequently, rents were driven higher for a third consecutive month (net balance +21%).

Source: Confidencial Imobiliário

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