Fuelled by digital innovation, PropTech and FinTech solutions are bolstering an already hot residential market. Developers and mortgage lenders are winning big as homeowners seek out larger property to work from home.
At month close, Q3 stats indicate overall positivity and optimism for real estate. The market is finding comfort as homeowners prioritise payments despite the ending of government assistance. Investors are settling into the new normal and capitalising on the growth of consistently performing market trends.
What caught our eyes this week?
PropTech Poised to Transform Property
The pandemic is shifting the real estate market toward disruptive tech solutions. Highlighted by Opendoor's recent valuation at 4.8 billion, tech innovations are bringing an old-school industry into the digital realm. Solutions such as 3D virtual viewings from Peek are ushering in a new era of digitalisation.
Multifamily Residents Prioritise Rent Payments Despite Pandemic
A new analysis from Freddie Mac (OTCQB: FMCC) shows that overall rental payment performance has remained resilient in the face of the economic downturn due to COVID-19. Rent payments for 2020 were between 94%-96%, tracking slightly lower from 2019 by merely 2.2%. Supported by unemployment insurance, stimulus, and enhanced unemployment benefits from the CARES Act, households still manage to find a way to make rental payments as their main priority.
ASX Real Estate Winners and Losers
Over the last 6 months, the majority of Australia Stock Exchange (ASX) real estate stocks have recovered. Property developers win big, with Ultima United's (ASX:UUL) 6-month surge from 2 cents to 57 cents and Faster Enterprises' (ASX:FE8) 717% growth in the same period. On the downside, office spaces continue to take hard hits. Victory Offices (ASX:VOL) is down 90% in 12 months and ServCorp (ASX:SRV) is down 46% year-on-year.
UK's Largest Mortgage Lender Cashes in on Boom in Home Loans
Lloyds Banking Group's reports that mortgage lending increased by £3.5bn in Q3 and claimed the highest number of applications processed since 2008. A temporary stamp duty holiday, a race for space, and homeowners rethinking their living spaces have driven buyers toward larger homes away from the city centres.
Cautious Optimism in Singapore Real Estate as Sentiment Improves
According to the Current Sentiment Index, an improvement from 3.1 in Q2 to 5.3 in Q3 indicates a broad optimism for the property sector. While the industrial/logistics and suburban residential sector remain the strongest performers, senior executives of real estate firms predict that business park/hi-tech space and suburban retail will be the first to recover.
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