2023 TURKS & CAICOS REAL ESTATE - 2ND QUARTER YEAR-TO-DATE COMPARISON by Turks and Caicos Sotheby's International Realty
PROVIDENCIALES, Turks & Caicos Islands (PRWEB) July 22, 2023 -- Turks and Caicos Market Closing Out New Development Inventory
Historically, Turks and Caicos Real Estate Association (“TCREA”) allowed New Development sales to be entered into production as Closed after property completion, which created a significant lag time in reporting (up to five years), as we waited for major condo projects, and some new development villas, to complete. This anomaly has recently been resolved regarding New Development villas (where the homeowner owns the underlying land), so that we can now enter these in our MLS system as Sold once the land closes and the associated construction contract is signed. This change will assure that our Market Reports will better reflect our real time market conditions, at least regarding New Development Single Family residences and villas. Condominium sales data will continue to lag though, as project completion is a condition to Closed sales in our MLS system.
You may ask, “why bring up this technical information?” Here’s why: you will find after Q 2 of this year that our Sold $ Volume is pretty much even with last year (circa $373M vs. $375M) led by Single Family Homes Sold $ volume, which nearly doubled last year (circa $275M vs. $144M). However, much of this inventory was actually “Sold” between late 2020 and Summer of 2022. South Bank for example has 35 villas either under construction or newly completed, and this inventory remained in “Pending Transactions” until very recently when the transactions were belatedly entered into our production reports as Sold. Moving all these Pending Transactions over to Sold of course means that Pending Activity (signed contracts) went down (55%).
So, what are the takeaways in the Single Family Home sector? First, TCREA sold a boatload of Single Family Homes over the past 30 months (led by South Bank, then Beach Enclave, and more recently, the Strand). Secondly, we have established SFH as a true luxury segment as the 118% increase in average price demonstrates ($3,572,350 vs. $1,637,988). Thirdly, we are in a build-and-complete phase as we wait for new projects and pipeline projects to ripen. Fourth, the newly sold residences of today become the re-sale inventory of the future. And finally, new projects are in the pipeline to replenish supply.
With regard to the Condominium Sector, we simply lack existing re-sale inventory, with $ Volume numbers down 54% year from last year (circa $61M vs $134M). When a quality condominium enters the market, it typically moves quickly and at an excellent price, evidenced by the average DOM at an all-time low at 135 days. And for example, we recently sold a couple Shore Club units at record sales prices. Fortunately, we have great new development condominium inventory fulfilling a decade of built-up demand, led by The Point by Grace Bay Resorts, ARC at South Bank, and The St. Regis among others. This sales activity often will not go on the board as Pending and then Sold for months to years as the respective condominium developments gain momentum.
In the Land sector the average price dropped nearly in half resulting in a lower sales volume as 50% of the 92 sales were price below $250,000. There were no major parcels closed out and in the luxury end only 10 sales were priced over $1M. Should the current pending sales close out before year-end we will see the sales volume increase slightly.
The upshot is that there is a story within the numbers unique to our jurisdiction, and that’s where we can assist in optimally learning from the past, evaluating the current market, and foreseeing trends to come. So don’t hesitate to reach out to your sales professional to have a conversation about our market, and to assess purchase and selling opportunities!
http://thefinestcollection.com/MarketReport/July2023.pdf
https://www.flipsnack.com/BA7977E569B/2q-turks-and-caicos-market-report-2023.html
https://www.turksandcaicossir.com/
Joe Zahm, Turks and Caicos Sotheby's International Realty, https://www.turksandcaicossir.com/, 1649 9464474, [email protected]
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