Susan Gordon, Business Reporter

Deborah Cumming, managing director of Century 21, says the $50 billion value placed on real estate transactions in 2007 was a conservative estimate. - Ian Allen/Staff Photographer

Jamaica's real estate market recorded transactions valued at about $50 billion last year, according to realtor Deborah Cumming addressing an investment conference on Wednesday.

Cumming, the managing director of Century 21/Heave-Ho Properties, Jamaica, said real estate remained a sellers market throughout 2007.

She attributed some of its buoyancy to the slight decrease in mortgage rates, people having access to more disposable income helped by a slight decrease in the value of the currency and a number of housing completions which had to be on hold in 2006 due to the shortage in cement during that year.

Her estimate of what the market generated, she said, was based on figures from the Titles Office, but was by no means an exhaustive list since it represented only concluded transactions for that year.

Alpart transaction

In fact, she said an Alpart transaction of US$6 billion for 2007 was not included in the $50 billion value quoted.

Cumming also expects 2008 to be just as lucrative.

"Based on figures from the Titles Office the average sale increased by about 30 per cent while transactions increased by 8.7 per cent," said the realtor, pointing to the resort market, commercial/ office space and rental markets, especially in Kingston, as the areas of highest demand.

Townhouses were atop the list of demands for rental and purchases, and are heavily sought after by companies and individuals, especially those located in the Kingston 6 area near to New Kingston.

Rents

Digicel Jamaica, she said, rents in excess of 100 homes for its employees. Similarly, Flow Communications and other big companies are driving up the demand for townhouses to accommodate their staff.

A townhouse in the Kingston 6 area and located in the Golden Triangle could fetch rental income of US$2,500 to US$2,800 per month last year. That's the equivalent of about J$175,000 to J$196,000.

"The rental market moved in waves," said Cumming.

"The year ended with a 60 per cent increase over 2006," she told investors.

'Big opportunities'

On the commercial side, there are also 'big opportunities' for warehouse space, saying investors should look to buy properties along the highways.

She said while not many more hotels were going up, the villa market was booming with many villas being sold to foreign investors, who in turn were making the properties available for rental.

With a shortage of land in Kingston, Cumming advised investors to lobby hard for the redevelopment of downtown Kingston, where office space is available but unattractive under current social conditions.

Outside of Kingston, she cited Spring Farm, Pimento Hill and Rose Hall Great House in Montego Bay as areas to buy into.

For the south coast, areas surrounding Treasure Beach in St. Elizabeth were recommended for investment.

susan.gordon@gleanerjm.com