More buyers want studios
and one-bedroom homes
~ Oyster Pond and Guana Bay highest-priced neighbourhoods ~
PHILIPSBURG--More buyers have been investing in smaller properties instead of shelling out big bucks for two- or more-bedroom houses/condos. Based on the Economic Outlook released by the Department of Economic Policy and Research (DEPR), the average sale price for one-bedroom/studios has increased by 22.5 per cent over the 2006 figures, while prices for larger properties have dipped considerably.
The average cost for a one-bedroom/studio last year stood at US $161,662 compared to $131,917 a year earlier. A two-bedroom unit cost an average of $207,292 last year, while the average cost was $227,882 a year earlier. Three- or more-bedroom properties ranged between $300,586 and $342,514 last year. The same type of properties averaged between $326,245 and $439,078 in 2006.
Asked for an insider’s take on the market trends, real estate agent Arun Jagtiani of RE/Max said he had not seen the price of larger properties sliding. However, the demand for studios and one-bedroom homes could be tagged to more buyers being unable to afford larger houses and having decided to pool their resources in what they could afford for now.
“Maybe people are willing to do without the larger place until they are ready for a family. Another factor could be that there are many young single professionals on the island,” Jagtiani said. Visitors seeking a vacation home tailored to short trips could also be driving the price up for smaller properties.
Like other real estate agents, Jagtiani would like a more comprehensive way of collecting and analysing data that would result in a better market description, especially for overseas buyers who are willing to invest here. He added a hope that with the planned tourism statistical unit there would be some component to gauge the type of property in which visitors were interested or what they had bought.
The Economic Outlook lists Defiance, Oyster Pond, Guana Bay and Hope Estate as the districts with the highest priced real estate on the Dutch side, with an average home value of $283,750, up from $187,500 in 2006. This significant jump in 12 months could be attributed to the areas surrounding the “posh” neighbourhoods. For Oyster Pond and Guana Bay developing fast and available real estate is becoming more expensive as land is less available.
With the planned construction of 72 “affordable” government apartments in Hope Estate, there are concerns among residents and property owners that this may impact property values negatively. However, Housing Commissioner Theo Heyliger, aware of the concerns, is proceeding with the project, which he believes will not affect the neighbourhood as the buildings are designed to blend into the surroundings.
“These are well-thought-out buildings that will enhance the neighbourhood. We are not putting up boxes. One thing I am very keen on is ensuring that any project I undertake to build is of high quality and pleasing to the eyes,” Heyliger said.
Taking the second spot for most pricey neighbourhood is Simpson Bay/Pelican with an average price of $282,000. In 2006, this neighbourhood ranked as the priciest with an average price of $225,625. The building congestion in the area and traffic associated with the Simpson Bay bridge are blamed for the fall in prices, according to real estate insiders.
Belair rounds off the top three priciest places to live on the Dutch side. The average property cost $262,500 in 2007, up from US $162,500 in 2006. The hilly neighbourhood’s biggest disadvantage is its narrow roads, but despite this, demand for lots continues to be high.
Airport/Lowlands takes the fourth spot for upscale neighbourhoods. The average price in this area for 2007 was $227,500, an increase from $202,500 a year earlier.
Fort Willem/Little Bay is in the number five position with property prices averaging $208,750. Houses and lots sold for an average of $126,563 in 2006.
In the number six spot is Pointe Blanche. Average selling price for properties logged by DEPR was $200,000 for last year. Twelve months earlier, the average cost was US $166,667.
Philipsburg, listed as the seventh highest-priced area, was one of three places to see a decline in property values. In 2006, buyers were paying an average of $225,000 for real estate in town. However, the average cost for available properties was $170,000 last year.
Gridlock traffic and insufficient parking are prime causes noted for the decline, stated real estate agents. Prices for property on lower Front and Back Streets are expected to increase significantly with the construction of a second tender jetty in the vicinity of Sea Palace early next year.
Another price-driver is expected to be the upgrading of the Cannegieter Street/E.C. Richardson Street Loop in the coming months. The streets will be changed into one-ways with parking on both sides to increase capacity in town. The upgrade will complement the beautified Front and Back Streets, the highest priced real estate in Philipsburg.
Cul-de-Sac was in the number eight spot with an average price of $141,667 last year, compared to $102,083 a year earlier.
Betty’s Estate, Saunders and Madame Estate had the same average price of $130,000. However, the biggest price jump was recorded in Madame Estate, where the average price was $95,833 in 2006. That same year, the average price in Betty’s Estate and Saunders was $123,938.
Prices in Cole Bay, ranked number 10, declined from an average price of $130,000 in 2006 to $128,750 last year.
Ebenezer’s average price increased to $120,000 last year from $98,438 in 2006. This was followed by Middle Region, Arch Road and Sucker Garden with an average price of $100,000, up from $77,917 in 2006.
The average price for real estate in St. Peters was $95,000 in 2007, a decline from $100,000 a year earlier.
Dutch Quarter and Mount William Hill real estate cost on average $93,333, up from $73,438 in 2006.
Cay Bay was the lowest-priced area, with an average price of $75,000 in 2007, an increase from $66,667 a year earlier.
