The Agency Turks and Caicos managing director Sean O’Neil.
COCKBURN TOWN, TCI--A strong fourth quarter has propelled the Turks and Caicos Islands’ (TCI’s) real estate market into 2021 with fervour, despite the challenges of last year.
This is the view of luxury real estate brokerage The Agency Turks and Caicos, following an assessment of the industry’s performance in 2020 amid a global pandemic.
In the company’s year-end report, managing director Sean O’Neill stated: “It is evident that while the United States was undertaking ‘the Great Migration’ from urban to suburban areas, the closure of the TCI’s borders meant our engagement was somewhat limited. This, coupled with the restrictions on Canadian travel, accounts for much of the reduced market activity. That being said, the market data and the proliferation of private aircraft frequenting our [fixed-base operators – Ed.] FBOs are evidence that despite the challenges, Turks and Caicos Islands remains a top destination.”
The report stated that in 2020, the TCI’s real estate market saw a four per cent reduction in average price and a 12 per cent reduction in number of sales.
The report further outlines that the condo sector, particularly the luxury condo market, saw a resurgence in 2020. Volume, average prices and median prices all increased over the year.
“With a renewed growth in tourist numbers, we expect to see condo sales remain active in 2021, reinforced by enquiries received over the holiday period.”
Adding to The Agency’s recap of the year past and its promising projections for the future, was another major player in the real estate market – Turks and Caicos Sotheby’s International Realty.
In its year-end market report, Sotheby’s stated that the TCI’s real estate market closed “like a champ.”
“The 2020 TCI real estate market performed better than we ever could have hoped for in the context of COVID-19, a four-month countrywide shut-down and stringent travel requirements.”
Sotheby’s recalled a challenging first quarter, with some momentum being built in the second, led by the sale of a couple of trophy properties and several new development villa sales. This was also assisted by a stimulus for the market from the government in the form of a concession halving stamp duty for the second quarter.
“This helped us close sales during this torturous time for our hotel, resort and villa rental partners grappling with the border’s closures.
“And this is really the first time in our history that our real estate industry has not been so directly tethered to tourism flow,” the report reads.
“The overall market in 2020 exceeded our projections noted in the third quarter report, finishing well above the predicted US $273 million mark thanks to a busy fourth quarter stimulated by a stamp duty reduction.”
The Sotheby’s report notes that after a steady third quarter, the fourth quarter started strong and ended with a flourish, bringing the market to within 15 per cent of last year in gross sales volume of $339 million versus $290 million for this year – and ahead of 2018 which was a strong year in its own right.
On the luxury end, there were 16 home sales over the $3 million price point with the highest recorded home sale at $13 million for an existing villa.
The average price decreased slightly, finishing at $1.68 million.
Completed sales in the new villa development category represented 24.9 per cent of the single-family homes sales volume, the report outlines. ~ Turks and Caicos Weekly News ~
