_Which resort leads our Ski Property Index?
Overall, the Ski Property Index increased by 1.2% in 2020, down marginally from the 1.4% seen last year, suggesting the pandemic has had little impact on prices to date.
Kate Everett-Allen, head of international residential research at Knight Frank said: “French resorts dominate the top half of the Ski Index this year with buyers attracted by the resorts’ rental prospects and good liquidity. High levels of stock combined with the ongoing impact of Lex Weber (a 20% cap on second homes) are deflating prices in some Swiss markets but resorts such as Crans-Montana, St Moritz and Gstaad are starting to turn a corner.”
Roddy Aris, Knight Frank’s head of sales in the French Alps said: “Prices in most French resorts are being supported by a lack of new supply as building permits become increasingly hard to obtain which is resulting in a 5-10% premium for new-build homes.”
Verbier is the highest-ranking Swiss resort in 2020, recording annual price growth of 2.9%. Its schools continue to attract an international clientele, a number have opted to base themselves in the Alps semi-permanently due to the pandemic and upgraded their second home as a result.
Alex Koch de Gooreynd, Knight Frank’s head of sales in the Swiss Alps said: “The smaller Swiss resorts of Grimentz and Champery are presenting non-residents with a good choice of new-build apartments at lower price points which is generating interest. International buyers are looking more favourably at Switzerland as a permanent base, due not only to its handling of the crisis, but also the lifestyle it offers. On top of this, the appeal of owning a Swiss property is now strengthening with interest rates negative and Swiss banks effectively charging clients to store their capital.”
Looking to the US and Colorado specifically – the pace of the Colorado housing market recovery has taken many by surprise. By September 2020, Aspen Snowmass had already shattered all previous records for dollar volume sales with the cumulative total for 2020 surpassing $2.6bn, a 36% increase over the previous year’s total ($1.9bn).
In the first nine months of 2020, Aspen recorded 464 sales, exceeding the total of 418 for the whole of 2019. However, a gap between buyer and seller expectations may start to emerge in the coming months. Inventory levels have not kept up with demand and new listings are down by as much as 50%. Sellers may start to adopt aspirational asking prices, but it remains to be seen how buyers will respond.
What lies ahead?
Four trends and events that ski homeowners should have on their radar over the next 12 months:
- Brexit Implications – UK buyers seeking finance for their alpine home may need to work harder to find the most suitable finance package, as some of the current options may disappear
- Currency Play – Currency movements can create substantial shifts in buying power for overseas purchasers
- Design and Technology – The pandemic is likely to hasten new design trends as developers look to adapt their home to cater for a change in living and working patterns
- The rise in the 50/50 home – Across all our ski markets, the last six months have seen second homes reclassified as semi-permanent homes and with this comes higher expectations. These homes now need to have as high a specification as the owner’s primary residence
- Long-term rentals as a precursor to future sales – As many of the world contemplate second or third waves of the pandemic and tighter lockdown restrictions this winter, Knight Frank is seeing demand for long-term lets strengthen as ‘The Great Working From Home Experiment’ has opened up new windows of opportunity