Conference to ask if property boom can last

| 06/12/2018 | 45 Comments
Cayman News Service

RICS Cayman Chapter Leadership Committee (L-R) Ruth Watson, Senior Valuation Officer with the Lands & Survey Department; Andrew McBean, Senior Quantity Surveyor, Arch & Godfrey; Uche Obi, Caribbean Business Development Manager, DDL Studio; Alex Farrington Chartered Surveyor, Quayside Surveyors Ltd; Jeremy Superfine, Director, BCQS International (click to enlarge)

(CNS): The question of whether or not the local real estate boom of recent years is sustainable will be one of the main topics of discussion at the Cayman Islands Property and Construction Conference, to be held in March next year, hosted by the Cayman branch of RICS, the professional body of quantity surveyors. The issue of when the property bubble will burst is a significant one for Cayman, as construction and property sales have both fuelled domestic economic growth and filled government coffers. Construction grew by 7.2% in 2017 and property sales by 9%, according to official figures.

The local real estate market has been on a steady incline for several years and the RICS conference will be looking at the regional and global factors impacting the economics of real estate in Cayman.

“Recently, the Cayman Islands has experienced an unprecedented increase in activity in the real estate and construction sector that has had a positive impact on the economy,” said Uche Obi, Chair of the RICS Cayman Chapter. “It is uncertain how long the boom will last.”

The conference will allow those in the business to discuss the “internal and external factors that have influenced the boom and explore the future”, Obi added.

Tags:

Category: Business, Construction, Real Estate

Comments (45)

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  1. Anonymous says:

    All great stuff! Great comments! Should be an entertaining conference where can I get a ticket!

  2. Anonymous says:

    These guys need to go back to school to learn how to stop undervaluing properties then our real estate boom might stand a chance of continuing…

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  3. Anonymous says:

    North Side will boom too when the bypass extension is done next year!

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  4. Anonymous says:

    There has never been a better time to buy real estate in the Cayman Islands.

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  5. Anonymous says:

    When the bubble bursts the money laundering done under the guise of construction of buildings that never get leased and restaurants that never make any money will come to light.

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  6. Anonymous says:

    How about some rent controlled pricing for the high end condos like they do in NYC?

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  7. Anonymous says:

    Some of these so called RICS chartered QSs wouldn’t know what they were looking at even if it had a big fat label on it. This is coming from personal experiences with them.

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  8. Anonymous says:

    All the foreigners getting rich of Cayman land – feel so sorry for the young caymanians of the future. We have let them down and handed over our paradise for cheap. Now they make millions of what our four fathers toiled for. Anyone notice how it’s all outsiders deciding what’s up for grabs in cayman. Yet they say we are entitled.

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    • Anonymous says:

      You have four fathers? How odd.

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    • Anonymous says:

      Given an example because all I hear is sour-grapes from your fore-fathers selling property that you want back.

    • Anonymous says:

      Here’s the thing. Someone had to sell it at some point.

      Your forefathers sold it for much less than it’s worth today but still a lot more than they acquired it for.

      They also had no way to know whether it was going to go up or down in value. Property has gone up and up but so has Apple. That doesn’t mean either was a foregone conclusion.

      By your logic no one should ever sell anything. Just keep it and be rich on paper with no actual money.

  9. Anonymous says:

    I think people are more concerned about the growing trend in replacement values being HIGHER than market values for both existing and new residential homes, even commercial properties. I understand that if you are unwise enough to build a $500k home next to a bunch of $250k homes then you are asking for trouble but this value discrepancy is occurring for all types of properties with no plausible logic. There appears to be a lot of inconsistency with property valuations which needs addressing and monitoring.

    Are property values genuinely decreasing? Does it impact certain areas only?
    Are foreclosures pushing values down?
    Are construction costs inflating enough to distort values?

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  10. Anonymous says:

    Its not a question of if rather its when and its going to be bad. This madness cant go on forever. Seems like planned development will never happen.

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  11. Anonymous says:

    Lets have a “conversation” while the smart ones have already made their decision.

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  12. Anonymous says:

    As long as the CIREBA cartel keep artificially raising prices to cover their commissions, we’re all good. Seriously, where else in the world are brokers allowed to reap such rewards for so little with no oversight except their own? How do i sign up to be a member?!

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    • Anonymous says:

      I think you maybe dreaming here a little..The market or the homeowners themselves sets the price, not CIREBA, They are basically sales agents for the owners..No one can tell me how much to price my property neither can someone tell me I have to pay a higher price than I think something is worth.

      Cayman has a market driven economy and we should be happy if the prices of our properties are on the rise..

      It is a sellers market right now and if I want to list my home at a price where I feel I can get an excellent return on my investment, no one including anyone form CIREBA can force me to do differently.

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      • Anonymous says:

        Most RICS members have been to college or university and done 2 to 4 years of further education at a minimum. They then have to get qualified which entails 2 years professional experience followed by an interview plus a written submission.

        To be a CIREBA member, you need no qualifications. Most of them were former dive instructors, bar tenders and cruise ship employees. They make 7% commission. Who do you think is more trustworthy?

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    • Anonymous says:

      nonsense… if that were true the prices would never go down as they did in 2010-2015

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  13. Anonymous says:

    The RICS is a professional body that includes quantity surveyors as well as building surveyors, valuation surveyors and land surveyors.

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    • Anonymous says:

      Professional, that’s a laugh. I’ve dealt with some of these characters before. They were far from it.

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      • Anonymous says:

        Especially the one found guilty of “Deception” by a friendly judge some years ago . Today he would have been sent to prison instead of being free to continue screwing people as a “professional”.

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  14. Anonymous says:

    like crows looking into a milk bottle…no one can predict the future and these local ‘experts’ can’t even give you stats on property value increases over the last few years.

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  15. Anonymous says:

    While this is happening I hope that Government will take a look at a suggestion put forward by Administrator John Cumber way back in April 1967 :“Looking ahead to legislation which may be considered necessary in the future, His Honour mentioned the advisability of the Assembly giving thought to protecting some land for Caymanians which would not be available for sale to expatriate purchasers”. Link; https://www.caymancompass.com/2017/04/02/50-years-ago-administrator-cumber-tackles-district-concerns-at-meeting/ At present it seems as if all development is aimed at high end customers which excludes the majority of Caymanians.Perhaps a developer should be obliged to develop or make available property not only for the millionaires but also for people less fortunate.

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  16. Anonymous says:

    I hope they do their best and stop ruining people’s invesments such as undervaluing homes!

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    • Anonymous says:

      You mean the quarter-million house that was built at a cost of 25,000 on flooding land with terrible neighbors. Oh yeah, that house.

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      • Anonymous says:

        No was actually referring to market value being $650,000 yet replacement value is $875,000 and I’m compelled under insurance law to pay insurance on the latter. So in all not only ruining my investment but also conning me out my money on property insurance.

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        • Anonymous says:

          ok…so you know nothing about market valuations….

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        • Anonymous says:

          Yikes, its worse that I thought. Everybody’s got an angle to scam homeowners.

        • Anonymous says:

          Ask Edlin. He got some good priced insurance he’ll sell you.

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        • Anonymous says:

          Let me teach you something. Market Value is based on sales evidence alone. The replacement value includes cost to construct, cost to demolish and professional fees. The 2 numbers have no relation to each other.

  17. Anonymous says:

    Bubble is going to burst and when it does it is going to be bad. Many are going to be holding heavy bags.

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    • Anonymous says:

      This thing is over heated like crazy. There is going to be some tears shed when the bubble bursts.

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      • Anonymous says:

        You are ignoring riots in Paris and chaos in the U.K. People want a safe and easy life. Cayman provides it (at a price) for those willing to pay it. Everyone benefits. There are plenty of wealthy people on their way coming from places where the square foot costs are much higher than here. Prices in the upmarket areas are secure, and will continue to rise.

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    • Anonymous says:

      Lots of people will get their fingers burnt

  18. Anonymous says:

    Utter bollocks. The answer is no.

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