Operating environment

Housing

• Consumer activity has recovered to the 2019 level. However, uncertainty is again increasing due to the second wave of the coronavirus pandemic.
• Private property investor demand is moderate.
• Institutional investors returning more active. However, uncertainty is again increasing due to the second wave of the coronavirus pandemic.
• Availability of housing company loan financing expected to remain difficult. Access to consumer mortgages becoming more challenging.

• Demand stabilised in Q3, but uncertainty is starting to increase due to the second wave of the coronavirus pandemic.

• Uncertainty is increasing due to the second wave of the coronavirus pandemic.

• Consumer demand continues to focus on reliable developers.
• Low mortgage interest rate is expected to support sales.
• The State’s interest subsidy programme to continue until June 2021, which is expected to support consumer demand.

Business premises

• Property investors becoming more active and the readiness to make decisions is normalising.
• Rental demand recovering.
• Contracting market remains stable as cities have a large volume of projects ongoing and in preparation.
• In the longer term, even though remote work will become more common the total demand for office premise is expected to remain stable due to changing requirements for office spaces.
  
• In property valuations, yield requirements are expected to remain stable.

• Contracting market remains slow due to uncertainty caused by the coronavirus pandemic.
• Price level remains low due to intense competition.
  

• Property investors increasingly cautious due to the second wave of the coronavirus pandemic.
  
• Rental demand slowing down due to uncertainty caused by the coronavirus pandemic.

Infrastructure projects

• Demand weakening as the coronavirus pandemic is causing delays in the development of infrastructure projects in some cities.
• Market supported locally by infrastructure projects in urban growth centres, transport projects and industrial investments.
  
• State stimulus packages expected to start supporting the sector during 2021.

• Price level remains low due to intense competition.
• Contracting market expected to remain weak.
  

• Infrastructure construction expected to remain at a good level due to traffic infrastructure
  development programmes and urbanisation development.
• Large-scale road and railway projects and industrial investments ongoing and in preparation.