Rego: First Real Estate Increase Since 2008
2013 saw the first positive increases in unit and dollar volume in the real estate market since 2008, according to Rego Sotheby’s International Realty President Buddy Rego.
In the latest issue of the company’s newsletter, Mr. Rego said, “While we are a long way from the $685 million, 592 unit turnover of 2008, 2013 witnessed a market volume of over $225 million reported to date, up from $197 million for 2012 – signaling nearly a 13% dollar volume increase.
“Likewise, the real estate industry did more business over 2012 as the number of 2013 property transactions increased by 10% to 107 units. Furthermore, the average price of condominiums with an Annual Rental Value “ARV” of $32,400 or less increased 4% and units over $32,400 ARV increased by over 8% in 2013.
“The first quarter of 2014 continues to witness stronger market demand led by the reduction in license fees payable by Permanent Resident Certificate “PRC” holders for the middle price range of the condominium and stand alone home market – ranging from $750,000 to $1.5 million.
“Detached homes with an ARV less than $177,000 were the strongest supporters of the market showing an increase of 15% in unit volume at an average price of $1.2 million. Currently, this is representative of a 3-bedroom, 2-bathroom stand-alone residence possibly with pool and dependant on location and condition of property.
“The positive changes made to real estate policy in 2013 have had unfortunately slow effect in bearing fruit. The luxury market [homes with an ARV greater than $177,000] as reported in our last newsletter saw a decline in volume in 2013 from 2012. This sector of the market continues to be sluggish during 2014 not showing any recovery to date.
“The reduction in license fees applicable to non Bermudian condominium and house buyers has not yet had the desired effect of increased purchases in the luxury-end of the market. The average sale price in the luxury-end of stand-alone residences has held well at an average sales price of $6.6 million over the last 3 years.
“In 2014 another positive change to policy has been drafted which will allow exempt and local companies to purchase residential property. In both instances, purchases are proposed to be restricted to only those properties available to overseas purchasers. The immediate impact of this too has been minimal with interest cautious at this time.
“During the first quarter of 2014 interest remains strong for single family homes and condominium sales have outpaced 2013 sales year to date.”
The newsletter also noted that based on their data, rents for their listed apartments average at $1,000 per month for studios, $1,750 per month for one-bedrooms, $2,400 per month for two-bedrooms and $4,000 per month for three bedroom apartments.
And if Government ever gets around to easing some of the red tape and restrictions around the purchase by PRC’s(such as no longer advertising the sale to Bermudians) property might actually be able to start moving again……
yup! out of Bermudian hands into foreign hands.
It was the PLP who changed laws to put more property into non-Bermudian hands, of course.
Evidence of this, please?
Oh, wait. My bad. PRCs, who live here for decades, add to the community, have kids, and desperately want to become citizens… they’re still foreigners and should be shunned, right?
It amazes me that you lot had the nerve to act offended when people called you xenophobic.
…and here we go. We march and demand more jobs and we don’t want foreigners to invest or work here. It’s one or other. Do you want everyone to be fishermen or maintain your the status quo. But this ignorance has got to stop
I don’t think it’s a matter of “not wanting foreigners to invest or work here.” It’s more a matter of Bermudians wanting a fair shake at opportunities, both in jobs and real estate in their own country – which is a valid concern given our limited space and opportunities.
It is not ignorance to want access to these things in one’s own country, for yourself and your children. Only a fool doesn’t look out for his own interests.
Agreed but the younger generation need to supported and encouraged to get the skills that are currently in demand on the island which for some reason isn’t happening because some people aren’t willing to put in the long hours or sweat and tears to get there.
Why do you bring it up now? It’s the most positive news in real estate since 2008.
It was the PLP who expanded the base of property that can be sold to non-Bermudians. Nobody said a word about ‘limited space and opportunities’ then.
Most people are not aware of the hoops that PRC’s must go through to buy a home so the Bermudian who is trying to sell is stuck….so it does effect Bermudians too…..we grant people permanent residence and a property that may have been unsold for a long period of time has to be advertised to show that Bermudians are not interested in the property. Unless people wake up and recognize that Bermuda is in critical need of people to move here and invest here…until that happens the long and painful slide will continue…..falling on deaf ears I suppose
PRC’s are not foreigners you igrunt soul.
If PRC’s have to be licensed to purchase for some reason, it would make more sense for a PRC simply be licensed in advance to purchase property in general (not for a specific property), then they can participate in the process just like anyone else. It takes months for a PRC application to be approved, which puts them at a disadvantage to both the seller and the buyer. Clearly the Gov’t is not in as much need of revenue as they are making out to be – otherwise you would expect the government to be prompt in processing applications in order to get the tax revenue.
What we really need is to stop allowing a few individuals or “Trust” Companies to own up to 100 homes. There are more than a few people , (some hiding behind trusts) that own 100 homes. Lets assume that 5 people (or trusts) own 100 homes and another 10 that own 25 homes. That is 750 homes that never enter the market! In essence these owners control the rents and cause prices to increase drastically.
With fewer homes for sale, demand grows, prices increase and if owned by a trust nobody ever has to pay death tax.
OBA and PLP please get together on this one. Fight for our children’s right to own their own home. Change the laws so that no one person can own more than 5 homes – NOT 100!
You need to get your facts straight on this I’m afraid. Heresay isn’t law
ALthough I dont think they intended this to happen, thanks to legislation passed by the PLP, many PRCs now have the right to become Bermudian and purchase any Bermudian real estate they want without paying any extra license fees.
And thanks to legislation passed without warning by the PLP requiring people to have a license to own a home even if married to a Bermudian…….that was pleasant …….they did more harm than good in the grand scheme of things. Except for chosen few
The PLP proved time and time again that they didn’t have a single brain cell between them. They did more damage in 14 years than in the previous 400. Complete fools – as we will be if we ever vote them back in.
Let’s not sink to hyperbole.
The demagogues like to pretend and paint anyone not 100% PLP in a certain way…
Isn’t it best to make sure that they’re lying about it?
If anyone votes PLP again,the state of Bermuda rests solely on their shoulders.
When are BERMUDIANS that were married to a foreigner gonna get their land license fees back or at the very least get a credit towards their land tax. This was a money grab by the Government and should have never been allowed to happen. There should be a class action law suit. Human rights were violated!