Ashford W. Meikle, Staff Reporter
WHILE THE Jamaican real estate market continues to be robust for the last six months potential homeowners are still challenged to find properties.
"In the last quarter of 2005 [the] demand for housing remained strong and supply short. We are still experiencing a sellers' market. That means that there are more persons looking to buy properties than what is available," said realtor, Valerie Levy of Valerie Levy and Associates Limited.
She was speaking at Mayberry's monthly Investors' Forum at the Knutsford Court Hotel in New Kingston last week.
"The greatest demand for housing is in the price range of between $5 and $8 million [but] these are not readily available and are immediately absorbed, when offered on the market," Mrs. Levy continued. Also in high demand, she noted, were properties in the $12-$20 million price range.
A sellers' market persists, because there is a shortage of land space in Kingston and St. Andrew the first choice of most people. As a result, developers are unwilling to build affordable homes since the return on investment would be quite negligible.
"I can tell you, in Kingston and St. Andrew there is a shortage of that type of land. As a result we are seeing a dramatic increase in the price of just the land alone. That reflects definitely what the end product of a home will cost. Developers are finding it difficult today to find an acre or two of [flat] land in the Corporate Area. There is land in the hills but the problem is the infrastructure costs tend to rise and that has to be passed on to consumers."
Because of the unavailability of new housing solutions there is "an increase in the asking price of homes, resales are attracting multiple offers. This is so because there is a large sector of people who cannot wait for a new development to completed in 18 to 24 months," Mrs. Levy reflected.
But while there is strong and healthy demand person have become more discerning.
"The rush to buy in pre-construction developments has tapered somewhat. Purchasers have become more selective, they are looking for quality while preferring to deal with a developer who has a track record."
But while the market remains buoyant, Mrs Levy insists that persons should start somewhere rather than be deterred.
MORTGAGE AN INVESTMENT
"What I would say to most people is even if you think you cannot qualify [to buy your dream home] the thing to do is to just really dig in even if you start with a studio apartment the thing to do is to just try and own it. Because when you are paying rent, rent is an expense, but paying mortgage is an investment.
The rental market, according to Mrs. Levy, is buoyant with townhouses and apartments in the US$1,200-US$1,600 per monthe the most sought after.
Howerver, there has been a slowdown in the US$4,000 monthly rentat market. But this is still an area in which to invest. "You are protected against the devaluation of the dollar because you are earning foreign exchange and you benefit from the appreciation in your property.
