In the heady days when Olint, the forex trading company was around, and many clients of that entity were reaping 10 percent per month, persons were paying almost as much for used residential units as new ones.
How can an investor get a good idea if the price is about right? Be like a valuator, do comparison pricing. A good place to start getting information on selling price per square foot are ads selling properties, especially new ones. Houses are of different sizes and make up, but by and large they have one thing in common, that is square footage. If the square footage is known, the value per square foot should be computed for all units, then prices can compared, because there is a common measuring rod. Without reducing values to a common measure, it becomes difficult to determine if one property is appropriately priced or not.
Some advertisements and a news item in the newspapers, provide some useful information as to where values are in the local market currently. Location of course is an important element of pricing, this is not factored in here. The information gleaned have values per square foot, ranging form a low of $10,000 for lower income units to a high of $25,000 per square foot for a Montego Bay waterfront property. The typical upper income units seem to be price around $22,000 per square foot for units of 600-700 square feet to $16,000 to $20,000 on the upper end for larger units. Older units would normally be valued based on be discount from the current selling prices of new units for their age, at around 2 percent per annum.
According to a Sunday Gleaner publication on July 20, 2014 Real-estate developer Matalon Homes is investing in a residential project called Welwyn. Construction of the luxury townhouses and apartments at Millsborough in St Andrew is to last a year. The units are priced at US$210,000 for the apartments of 1,100 square feet and US$420,000 for the townhouses comprising 2,100 square feet or approximately $23.6 million and $47.3 million respectively. The selling price works at $21,570 and $22,250 per square foot respectively.
In East Oakridge, Kingston 8 area, there are 1 and 2 bedroom apartments of 986 and 1,486 square foot, priced at $19 to 24 million or $19,250 and $16,150 per square foot respectively.Over in Montego Bay, The Landings at the Spring Gardens, have studios of 872 square foot going for US$131,000 to US$137,000 or J$17,000 per square foot and 2 bedrooms of 1,575 square foot, going at US$219,000 t0 $229,000 or $15,700 per square foot. There is the requirement for 35 percent deposit in two tranches. Over at Montego Freeport, there are also units selling at $25,000 per square foot. While, properties in the main cities are going at the above prices for new units, out in rural Jamaica, smaller units of 800 square feet are priced around $10,000 per square foot. Many of these tend to be built on cheaper lands than say in Kingston, they are also benefit from the fact that the developers are building hundreds of them in one community thus enjoying economies of scale.
[…] J$20,000 for the living space after adjusting for the lower cost relating to the garage and patio. These prices are in line with other new developments within the Kingston metropolitan […]