higher in price per square footage in comparison to single family homes
in highly sought-after places such as beachfront/canal front/waterfront
locations, I believe the pricing differential will become increasingly
In theory, condos ought to be cheaper than single
standalone residences on a per square foot basis with the cost
efficiencies that arise from building multiple dwellings under one roof.
However the cost of land along Seven Mile Beach overlooking the
beach itself is as much as 40 to 100 times higher than even beach-,
canal- and waterfront and other popular locations.
This makes any newly built Seven Mile Beach condo start at a high price already, even before building costs.
addition, even though the build costs are divided by the number of
units in the case of condos, the overall cost of raising such a property
Yes, condominiums make a lot of sense for those who
are looking to buy for the continuance of locking and leaving without
having maintenance headaches – as management takes care of this aspect –
especially when they might only be there a few weeks per year. Yet I
believe, increasingly, buyers are looking to buy a second home they can
enjoy for longer periods of time.
To date, the marketplace has
not given true value to what it actually costs to build a really
beautiful standalone home. Looking ahead, the marketplace is changing
and buyers will be prepared to look at standalone homes with new
interest, as finding quality sites to build on is going to be more and
Increasing numbers of both local and foreign
residents have benefited from the growth of the island as a whole. Both
are able to invest in and build high-end homes, as the inventory that
was needed was not available. Coupled with the fact that the perception
of building versus buying ready-built is badly misrepresented, as the
market has not been able to truly distinguish the difference in the cost
to build an amazing home.
In the future, demand for high-end
homes will increase in highly sought-after areas and buyers will be
forced further out of town, or possibly they may buy older homes on
desirable sites and rebuild to their specifications.
moment, there are a number of lovely homes under construction, which is
very encouraging, as this will provide more opportunities for choice and
quality ready-built properties in this market segment.
The true benefit of a well-built home
we need to change the mindset, to ensure proper appreciation of a truly
well built home that has had thoughtful design and construction built
into it, from underground all the way to its rooftop.
There is a
vast difference between a $200 per square foot home and a $600 per
square foot home, but the mind sometimes only sees perhaps a difference
between $200 and $300 per square foot.
This has been a common
issue that we as real estate brokers constantly need to convey to
buyers, but I do see the market coming around in time.
homes, which are very well built, are currently good value, but they
will appreciate in time as these type of homes are now starting to sell
for over US$600 per square foot.