by Marlon Madden
One of the island’s leading real estate firms is reporting a 46 per cent increase in property sale transactions for the first quarter of this year, when compared to the same period for 2021.
At the same time, Terra Caribbean has indicated that should the real estate market remain buoyant and the supply of properties in some segments decline, this could lead to less discounting and future price increases.
In the analysis, Barbados Real Estate Market Performance First Quarter 2022: Sales, the authors indicated that “2022 has started off with an impressive 46 per cent increase in the number of sales over quarter one of 2021”.
“While the average sales price was similar, the highest value sale achieved this quarter was significantly above last year,” they said. The Real Estate agents from the Brokerage Department, Emma Hutson and Betty Cathrow, reported that there was less discounting during the review period, with the average discount reducing from 10.3 per cent to 6.3 per cent.
This is also down from the annual average discount for the last three years of between 6.5 per cent and
7.3 per cent, they said. They noted that Terra Caribbean was experiencing multiple offers on numerous properties, which was leading to a decrease in the average discount achieved.
“With the market gaining more traction, supply of properties in certain segments is declining, which will inevitably lead to less discounting and possible future price increases,” they pointed out.
During the review period, residential sales were concentrated along the west coast and south coast of the island, close to beaches and amenities. They further indicated that a number of purchasers were seeking to invest in properties “with good rental potential and close to the amenities on offer in these areas”.
During the quarter a number of residential properties on or close to the coast were sold in the parish of St Philip. The company also sold one agricultural property in that parish during the quarter under review. Most property sales were concentrated in the parishes of Christ Church and St James, followed by St Philip and St Peter.
The volume of transactions by parish for the first quarter of this year showed a whopping 300 per cent increase in St Philip, a 127 per cent increase in Christ Church and a 40 per cent increase in St Peter, compared to the January to March period for 2021.
According to the Terra Caribbean officials, the real estate firm has seen a surge in the demand and interest in the west coast luxury market. “While the number of sales in St James declined, it is worth noting that in quarter one 2021 we sold a site with multiple townhouses to one owner, which inflated sales in that period,” they indicated.
The sales price range for residential and commercial property including land, averaged $965,736 for the first quarter of this year, compared to the average of $955,411 for the same period last year.
“Demand of houses increased this quarter with 57 per cent more homes sold. The total value of homes sold was up by 87 per cent [over the] quarter one of 2021. Land sales in quarter one of 2022 nearly doubled with the increase driven by two centrally located land developments near the south coast of Barbados – South View and the Grove”.
On the other hand, Hutson and Cathrow indicated that townhouse sales were down by nearly 50 per cent in the review period, when compared to last year. They said: “This was due to a development sale of multiple townhouses in quarter one of 2021 on the west coast of Barbados.”
“Apartments commanded 15 per cent of the market share in both years, with Terra closing just two more apartment sales in quarter one of 2022, compared to 2021,” they added. There was an approximately 24 per cent increase in the number of new enquiries from those interested in purchasing properties in Barbados.