Lockdown due to the virus has really put the brakes on the ‘quick out the blocks start’ we saw at the beginning of the year in PCL.
The below table shows the change in achieved prices and rental values on a £ per square foot basis. The data compares achieved prices since lockdown in mid-March with the first two and a half months of the year.
Achieved Sale prices- Notice when comparing Sales prices since lockdown in mid-March with the first two and a half months of the year, we see a fall in achieved prices of 4.2%. Obviously this is based on abnormally low sales volumes and does follow a 4.4% annual increase in achieved prices for the first two and a half months of the year. So falls in mid-March effectively cancel out the price increases in the first quarter.
Achieved Rents- Low stock in the run up to lockdown meant that the first two and a half months of 2020 achieved rents rose by 6.9% compared to the same period in 2019. Rents achieved since mid-March have fallen by 3.4% when compared with the same period a year ago.
Useful analysis, however as we all know transaction volumes are at an all time low. More time needs to pass in order to give a more informed assessment of the market in PCL.
Best regards and stay safe
Alexander WallPrevious Article Next Article