By NEIL HARTNELL
Tribune Business Editor
nhartnell@tribunemedia.net
A Bahamas-based realtor yesterday said residential sales had increased by 48 percent since 2014 ahead of what is expected to be “an unprecedented level of new inventory” hitting the market in 2019.
Colin Lightbourn, broker at Engel & Volkers, said in a statement that 2019 was expected to be “a strong year overall” with developments such as Sterling Global Financial’s $250m Hurricane Hole transformation; the GoldWynn project at Goodman’s Bay and other developments set to begin their sales promotion efforts in earnest.
“We will see an unprecedented level of new inventory on the market that will have a contemporary style and an emphasis on exclusive amenities,” Mr Lightbourn said. “Each developer is investing in new marketing campaigns that will attract an increased level of buyers to the island.”
His comments came as Engel & Volkers unveiled a five-year analysis of the Bahamian real estate market that analysed over 1,800 residential sales conducted through the Multiple Listing System (MLS), the centralised database through which realtors can conduct listings and sales.
Besides a 48 percent increase in total residential sales over the five-year period from 2014, The Bahamas-based realtor said its research also uncovered a 47 percent increase in the price for a single family unit on Nassau/Paradise Island.
Engel & Volkers said Elbow Cay and Treasure Cay in the Abacos were the “market hot spot”, with a 110 percent increase in residential sales over the five years. Calling on Bahamians to exploit the potential investment opportunity this creates, Mr Lightbourn said: “Treasure Cay, for example, has had an average sales price around $343,000 during the past five years.
“The ability to enter the market at this price and operate an income-producing property is an attractive investment. Bahamians also don’t have to pay property tax in the Family Islands, which puts thousands back into income each year.”
Mr Lightbourn added that Rainbow Bay and Gregory Town in Eleuthera, together with Cable Beach and Paradise Island on New Providence, and islands such as Exuma and Abaco offered the best investment opportunities.
The Engel & Volkers analysis also compared the Cable Beach and Paradise Island long-term rental markets and their respective yields, finding that the former had outperformed its rival by an average of 1.9 percent over the past three years.
“The higher return for Cable Beach is based primarily on the higher prices on Paradise Island, and the fact that the rental market thins out once you hit the $5,000 per month mark,” Mr Lightbourn added.
Around 90 percent of Cable Beach rentals were below this price point over the five-year period assessed, while only 69 percent of Paradise island rentals fell into this spot. Old Fort Bay, meanwhile, was the leading high-end location with an average residential sales price of $3m and average home size of 5,455 square feet.
Engel & Volkers said the MLS data was not a full picture of the real estate market, and only accounted for a portion of sales activity as just 379 of the estimated 600 licensed Bahamas Real Estate Association (BREA) agents were using it.
Mr Lightbourn suggested this meant the Bahamian real estate market was “performing at an even higher level” than that suggested by the company’s research. He called for a more accurate, centralised database on real estate sales that would be available to banks, insurance companies, realtors and government agencies conducting real property tax assessments.
Comments
Well_mudda_take_sic 5 years, 1 month ago
If we join the WTO all Bahamians and Bahamian businesses will have to pay tax on their real property holdings wherever located in The Bahamas and regardless of whether the property is developed or undeveloped. This is the primary reason why the Minnis-led FNM government is so anxious to have The Bahamas join the WTO. Under WTO rules, Bahamians cannot be taxed any differently on their real property holdings than foreigners investing in real property in The Bahamas. Minnis and his merry band of bandits are licking their chops at the thought of all those additional property tax dollars coming their way for them to loot and squander. LMAO
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