Driven by high-dollar deals, the Cayman Islands property market started out 2011 on a powerful note. However, the year ended on a whimper, with December arguably one of the worst months in recent memory, according to statistics provided by the Lands and Survey Department.
In December 2011, there were 111 freehold property transfers with a total value of $19.5 million. That’s the third-lowest number of transfers for the year, and the sixth-lowest of 72 months on record. The total value of transfers in December 2011 was the lowest for the entire year, and the third-lowest total value on record.
By comparison, there were 123 transfers in December 2010 worth $28.7 million. In December 2009, there were 161 transfers worth $37.7 million
The average value of transfers in December 2011 was $176,000, the lowest value for any month this year and number 62 out of 72 months on record.
Yearly figures
The relatively low average value of transfers for December 2011 bucked the trend that prevailed for most of the year, where major property deals boosted overall numbers. For the entire year, the average value of property transfers was $370,000, more than double December’s average.
The average value of property transfers for 2011 was far and away the highest average value on record, with the next-highest average being $249,000 set in 2006.
In 2011, there were 1,708 transfers worth $632.1 million, compared with 1,619 transfers worth $307.2 million in 2010. That is an increase of 5.5 per cent in the number of transfers, and an increase of 105.7 per cent in the total value of transfers.
The total value of transfers in 2011 was the highest for any year since 2006, when there were 2,777 transfers worth $691.1 million.
Fourth quarter
Collectively, the last three months of 2011 were the worst for the year. In the fourth quarter of 2011, there were 378 property transfers worth $92.9 million, with an average value of $246,000. Each of these three numbers was the lowest for any quarter in 2011.
The statistics posted in the fourth quarter of 2011 were more in line with the numbers posted in 2010, when the number of property transfers per quarter ranged from 323 to 496; and the value of property transfers ranged from $66.8 million to $94.0 million.
On the bright side, the average value of property transfers in the fourth quarter of 2011 ($246,000) was the 10th highest of 24 quarterly periods on record. However, that is still a major drop off from the first three quarters of 2011, which were the top three quarters on record for average value of property transfers.
Sales prices
According to average sales prices compiled by the Valuation and Estates Office, which are recorded on a different time schedule than freehold transfer numbers, there were 111 sales transactions in December, totalling $21.1 million. Of that, 43 transactions were land sales, 39 transactions were condo sales, 25 were other residential sales, and four were commercial property sales. The value of land sales was $7.1 million (34 per cent of the total for the month. The value of condo sales was $8.8 million (42 per cent of the total). The value of residential sales was $5.2 million (25 per cent of the total). The four recorded commercial sales had no value associated.
For all sales, the average price was $190,000, including $164,000 for land sales, $225,000 for condo sales and $209,000 for residential sales.
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