I had a very good response to last month’s article, on the disparity between what $2 million and above residential homes are often put on the market for, versus what the owners eventually are likely to receive for their sale.
For the sake of clarity, I would like to reiterate that the discussion centered on residential homes and not on Seven Mile Beach condos, which is a wholly different market altogether. The issue of overpricing does not apply to Seven Mile Beach condos because of the lack of inventory along the Seven Mile Beach corridor, a subject that I have been discussing for quite some time.
Condo owners along Seven Mile Beach belong to a select group between approximately 1,800 and 2,000 who possess property on one of the world’s most sought-after locations, with around 400,000 visitors each year all looking to stay at this beautiful location and possibly eventually owning a piece for themselves. This unique location of beach property draws people in from all over the world thanks to its pristine beach, calm waters and sunset views, but less than 2,000 people get to own that piece of the Cayman Islands.
Increasingly we are seeing buyers coming to Cayman willing to invest, while at the same time we are seeing owners unwilling to sell. This may be due to an all-time high occupancy level, no doubt fueled by a strong U.S. economy, the effects of a bad 2017 hurricane season for the eastern Caribbean, and the longest running bull market in history.
New benchmark development shows market commitment
As mentioned in the Cayman Compass last month, a new development is taking shape on Seven Mile Beach, called the The WaterMark, located near Public Beach between the Avalon and Harbour Heights condominiums. This development promises to set a new standard in luxury beach living in the Cayman Islands.
This new, 54-unit development is an indicator of the market to come for Cayman’s real estate industry, with a serious level of commitment from its renowned developer Fraser Wellon. It will also be an indicator not only of how the market is moving, but also the direction, setting new pricing between $1,400-2,000 per square foot. If one is surprised by these costs, you ought to bear in mind that the design of this property is second-to-none, the developer having incorporated future-proofing features that will set the standard for construction, design, and property amenities, making it the market leader in this aspect for many years to come.
James Bovell is broker/owner at RE/MAX Cayman Islands.