Further price rises expected especially in the more affordable villa market
As we approach the final quarter of the year we are going to be seeing some very interesting developments. Already we are continuing to see solid growth in the smaller villa sector with a continuing lack of inventory (especially along the North Coast) driving prices upwards.
Price rises have also been fuelled by a North American buying frenzy created by buyers that have discovered they can work from home and companies back in North America that are happy to let them.
In recent days travel has opened up again from Canada and it is the broad assumption that this will create more demand in a market that is already severely restricted leading to further price increases.
It's a good time to sell! - But not only sell - it's also a good time to rent out properties due to dwindling housing stock availability in the long term rental sector. This time prices are driven by a stock shortage due to more locals choosing to take short breaks away from Santo Domingo and Santiago, (possibly due to Covid and Covid travel restrictions) and as a consequence the more lucrative prices for short term lets, added to the increased demand from Canada as their travel sector gradually opens back up, leaves limited stock for the typical "snow bird" market with many rental agencies already reporting full occupation with their long-term units all the way through to April next year.
In summary - prices should continue to rise as demand continues to increase, although despite popular belief the retail market in Winter tends to be slightly lower than the summer. Stock shortages might dampen the market unless owners of more valuable properties consider offering financing. Keep an eye on China too - if their property market implodes and a credit crunch starts there might be a ripple effect across the rest of the World although I doubt such a scenario would be allowed to take place.
If you are a property owner and you would like to sell your property, then please get in touch with us today.
Simon Hall
Dominican Property Store