Rental Market and COVID-19
Stellax keeps monitoring the market during the unusual times.
The 1st picture depicts the number of properties rented throughout last year (Index, March 19 =100). After a seasonal spike in July-Sep, the transaction volume started to fall. Comapring March 19 vs 20, the YOY figure is down by a hefty 34.3%. Quite Interesting?
Let’s take a look at the “Time to find a tenant” barchart (Index, March 19 =100). The lower time is usually accompanied by a higher volume from the 1st chart. It is logical, since there is a higher demand in those months and the process of renting out a property is faster.
The logic breaks when looking at Feb and March 20. The volume is down >30%, but the time is also down by a huge 55%. A 60-sqm property on Keizersgracht would take only 8 days to rent in March 20 as opposed to 18 in March 19 (3rd pic, illustrative purposes).
Most likely this can be explained by a mixture of long-term and short-term factors.
– Long-Term : the demand keeps growing faster than the (quite limited) supply;
– Short-Term: coronavirus. The volume is likely falling due to slowing down of economic processes. The lower time is likely due to the fact that both buyers and sellers had to speed up their decision making during increasing severity of anti-corona measures by the government.