Saturday, April 19, 2008

Real Estate in Jamaica - Watch the Market

As I had pointed out in my first post, the Jamaican real estate market is not currently experiencing the downturn seen in the US market. Townhouse developments and apartments are still being established by developers and prices are still sky high. It continues to be a vendor's market especially in the attractive residential areas of Upper St. Andrew and the tourist mecca areas on the North Coast like Ocho Rios, Montego Bay and Negril. Just take a look at these listings on Craig List and the Gleaner classifieds.

There is some concern though that the market may trend downwards in light of the stress being placed on the economy with the increase in inflation and in particular the fall out caused by the crash of the unregulated financial institutions. This recent debacle involving Cash Plus and others has resulted in property mortgages going unserviced and cash flow being reduced. One probable consequence of this is that the real estate market could start to show signs of sluggishness such as:

  • The volume of high priced houses currently on the market could face difficulty attracting buyers at the current rates.
  • Also some holders of heavily mortgaged properties and other debts will need to liquidate properties expediently and expeditiously.

If you are a propspective buyer with the available cash you might wish to watch this carefully. In any event keep the market in mind at all times when negotiating the price. Get assistance from your realtor and your attorney. If there is no demand for the property at the quoted price, it will not sell. Some properties especially those on the beach front are so high end however, they are like diamonds and you know you can barely place a price on those.