Market Trends of Global Condominiums and Apartments Industry
This section covers the major market trends shaping the Condominiums & Apartments Market according to our research experts:
Increasing Demand for Condominiums in Several Regions Driving the Market
According to projections from the Foundation for Community Association Research, the number of new condominium communities and homeowners' associations increased by 5,000 in 2022. Community associations, also known as homeowners' associations, condominiums, and housing cooperatives, house 74.1 million Americans accounted for 25-27% of the housing stock in the United States. According to the Foundation's estimates, there were approximately 358,000 community associations in the United States by 2021. Homeowners associations accounted for 58%-63% of the total, with condominium communities accounting for 35%-40% and cooperatives accounting for 2%-4%. According to estimates, the value of homes in community associations is close to USD 11 trillion.
Prices for new condominium apartments in Vancouver increased the most (+4.2%) in Q1 2022, driven up by declining inventories and continued demand for this type of dwelling. Condominium apartments, as opposed to single-family homes, have remained a relatively affordable option for first-time home buyers as well as investors looking to enter a hot rental market. According to Rentals.ca, Vancouver had the highest year-over-year average rent increase (+29.9%) in March. Higher rents have attracted investors to this city, reducing the supply of available units and contributing to rise in prices for these new condominium apartments.
In 2021, approximately 60% of new condominium units sold in the Tokyo metropolitan area were priced at or above USD 0.37 million. This is the conclusion of the most recent Recruit survey of condominium buyers, which has been conducted annually since 2001. The price ranges of units purchased are broken down as follows: 22% were between USD 0.37 million and USD 0.44 million, while 36% were USD 0.44 million or higher. Meanwhile, the average floor space of condominium units in 2021 was 66.0 square meters, the smallest since the survey began. The proportion of units less than 70 square metres was 48%, indicating the ongoing trend toward smaller living spaces.
Increasing Apartment Construction to Meet Housing Demand in Asia-Pacific
The pandemic has hurt the entire hospitality industry because the demand tap was effectively turned off. However, the depth of that pain may have been less pronounced in serviced apartments, with the recovery appearing to be outpacing that of hotels. Using the United Kingdom as a comparison, London serviced apartment RevPAR (revenue per available room) was 17.9% lower in December 2021 than in December 2019. The level of RevPAR decline was also less pronounced during the pandemic. Because of strong domestic demand, the regional UK market has performed better than London in terms of serviced apartments and hotels. However, as of December 2021, serviced apartments outperform hotels in terms of RevPAR.
According to the Turkish Statistics Authority, the number of apartments sold to foreigners in June 2022 reached 8,630, an increase of 81.8% over sales in the same month last year 2021, and the highest monthly sales compared to the previous three years. During June 2022, foreign sales accounted for 5.7% of the total general sales of apartments in Turkey. Sales of apartments to foreigners in Turkey during the first six months of this year totaled 35,383 apartments, representing a 72.7% increase over sales to foreigners during the same period last year. Regarding the classification of foreign nationalities based on their purchases of apartments in Turkey, the Russians ranked first with 1,887 apartment purchases in June 2022, with the most foreign nationalities buying apartments in Turkey.
