Just one month after the first corona patient in Switzerland became known, PriceHubble examined whether the first signs of changes in the real estate market in Switzerland could be seen.
To this end, PriceHubble analysed almost all Swiss online real estate offers and compared the results with the previous year. Changes in the number of rental and sales advertisements were examined on the basis of three scenarios:
Scenario 1 (since relevance of the topic increasing in CH): 11.02. - 25.03.
Scenario 2 (since patient no. 1 in CH): 25.02. - 25.03.
Scenario 3 (since lockdown in CH): 16.03. - 25.03.
The results in brief:
The declining number of rental advertisements (-12.4%) and sales advertisements (-4.1%) during the worsening of the crisis in Switzerland (here considered: 25.2. - 25.3.2020) is a clear signal that can be attributed to the current circumstances or the corona effect. A comparison with 2019 clearly shows that the current development is exceptional.
The signals allow conclusions to be drawn about the current marketing situation and future developments:
The marketing of properties is becoming increasingly difficult, e.g. house visits are currently difficult to conduct. Virtual viewings or price estimates with digital solutions such as those from PriceHubble are becoming more important, as these can also be carried out remotely. The consequence of less rental supply, i.e. a shortage, makes it more difficult to find accommodation for those who gave notice at the beginning of the year or planned to move for professional reasons. In addition, the willingness to rein in rents will presumably decline, and thus possibly also demand, but those who had already given notice before the crisis are under pressure to move. Less rental supply can also lead to a price increase. Private investors and institutional investors are especially dependent on cash flow now and are therefore cautious about upward price adjustments.
The complete analysis and interpretations can be found here (German only).
Further analyses planned
We also observe advertising duration and price signals. We do not (yet) see any significant changes or consider the observation periods to be too short. However, we assume that the crisis will also have an impact on prices, in what form is still open.
Are you interested in current analyses of the impact of the Corona crisis? Please contact us!