Real Estate Data Report

© 2 0 1 4 K i n g s t o n P r o p e r t i e s L t d

3 6 - 3 8 R e d H i l l s R o a d

B u i l d i n g B , 1 s t F l o o r

K i n g s t o n 1 0 , J a m a i c a

T e l / F a x : 8 7 6 - 7 5 4 - 7 8 4 0

T e l : 6 2 0 - 4 7 0 7 / 4 9 2 0

Kingston Properties Real Estate Trust Presents

an analysis of Residential, Land and Commercial

activity in Jamaica’s Real Estate Market.

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Real Estate Data Report

Analysis of transfer data A total of 55,951 transactions comprised of residential, land and commercial transfer of real estate

were analyzed. The dataset spanned over a 7 year period ranging from January 2008 to December

2013. On average, the Jamaican economy experienced approximately $121 billion per year in real

estate transactions.

Research has shown that the value of real estate transactions plays a significant role in the growth

of a country’s economy. As shown below, over the period studied, real estate transactions

accounted for approximately 20% of GDP in 2008. Understandably, in 2009 and 2010 we

experienced a dramatic reduction in the value of real estate transactions in Jamaica, due to world

economic conditions which may have lowered consumer confidence leading to a reduction in real

estate transactions of J$1.7 billion in 2009 then by J$536 million which accounted for 8.9% and

4% of GDP. Between 2011 and 2012, Jamaica’s real estate industry has been recovering; real estate

transactions have since been responsible for 12% and 11% of GDP. See table below.

Year Real Estate (USD) GDP (USD) % of GDP

2008 $ 2,758,365,294 $ 13,676,837,630 20.17%

2009 $ 1,076,077,829 $ 12,043,372,132 8.94%

2010 $ 539,732,095 $ 13,202,998,398 4.09%

2011 $ 1,726,463,692 $ 14,402,486,059 11.99%

2012 $ 1,561,807,756 $ 14,755,051,129 10.58%

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Analysis of the number of real estate transfers per quarter over the period reflected that 2008 was

our best year for real estate transactions, with 11,926 transfers. The number of transactions declined

between 2008 and 2009 falling by 3,407 transfers, then by 743 between 2009 and 2010. In 2010,

the sales of real estate began an upward trend gradually increasing yearly by an average of 462

transfers. For 2013, the number of transfers was 9,160.

Yearly real estate analysis Here we compare the level of transfer activity in each parish, to analyze their behavior as economic

conditions changed yearly.

In 2008, St. Catherine, St. Andrew, Clarendon and St. James were the most active parishes with

more than 1,000 transfers while Manchester, Portland and Westmoreland managed to have

approximately 500 transfers. The parishes with the least transfers in 2008 were Kingston and

Portland with 118 and 187 respectively.

St. Catherine and St. Andrew had significant reductions in the number of transfers in 2009, with

2,932 and 1,817 respectively but remained the two most active parishes. Westmoreland and St.

James had transfers ranging from 500 to approximately 1,000 transfers. The least active parishes

were Hanover and Kinston with 93 and 102 transfers.

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2010 was the worst year for real estate activity in Jamaica over the period of analysis; St. Catherine

suffered even further reductions with 2,116 transfers while St. Andrew remained relatively

constant. St. James was the only other parish that made an impact worth noting, with a little over

500 transfers. Kingston and Portland had the least amount of transfers with 95 and 117 transactions

completed.

As the industry recovered in 2011, very little real estate activity took place Island wide with 12 of

the 14 parishes failing to reach the 500 transfer threshold; we did however see noticeable increases

from the previous year, in the number of transfers in St. Catherine and St. Andrew with 126 and

124 transfers.

As economic conditions improved in 2012 and 2013, almost every parish increased in the number

of transactions completed. St. Catherine and St. Andrew maintained their lead as the two most

active parishes while St. Ann and St. James recorded over 500 transfers and Trelawny emerged for

the first time with over 500 transfers throughout this period. Kingston and St. Thomas had the least

amount of transfer over this period.

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Individual parish analysis Here we show the level of activity in each individual parish on a yearly basis, the results are ordered

from the most active to the least active parish, based on each parish’s average number of transfers.

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Financial Analysis per parish

Analysis of 2008 revealed that Clarendon accounted for 62% of the total value of real estate

transaction with J$124 billion, next were Westmoreland and St. Andrew with 18% and 7%

respectively. The parishes that accounted for the least value of real estate transactions were Portland

and Kingston with J$485 million and J$693 million respectively.

Westmoreland led in 2009 with J$57 billion or 60% of the total transaction value. St Andrew was

next with 12 % and St. Catherine with 11%. The parishes accounting for the least transaction value

were Hanover and Portland with J$215 million and J$371 million respectively.

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St. Andrew, St. Catherine and Trelawny accounted for 30% and 19% of the total value of real estate

transactions in 2010. The lowest value of total transactions were in Portland and St. Thomas with

J$300 million and J$474 million respectively.

Analysis of 2011 revealed that St. Catherine was responsible for 80% of the total value of real

estate, next was St Andrew with 10% while all other parishes were responsible for no more than 1%

of the total value of real estate transactions.

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St. Catherine led once again in 2012 with approximately J$100 billion or 73% of total value. St.

Andrew was second with J$19 billion. Parishes with the lowest total transaction value were

Portland and Kingston with J$389 million and J$438 million respectively.

In 2013, Westmoreland was responsible for 27% of value of real estate transaction for the year; next

was St Andrew, St. Catherine and St. James with 22%, 16% and 14% respectively. Lowest total

transaction value was in Kingston and St. Thomas with J$771 million and J$609 million

respectively.

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Number of transfers per Km2

Further analysis revealed the Kingston and St. Andrew were the two most active parishes as

measured by the number of real estate transactions completed each year.

Kingston made an average of 5.3 transfers over the 6 year period under analysis. Next was St.

Andrew averaging 3.5 transfers and St. Catherine with 2.1 transfers. The parishes with the lowest

number of transfers per square kilometer were Portland and St. Thomas with 0.20 and 0.28 transfers

per Km2. Further details shown in table below.

Parish Transfer per

Square Kilometer

KINGSTON 5.32

ST. ANDREW 3.57

ST. CATHERINE 2.077

ST. JAMES 1.416

WESTMORELAND 0.746

ST. MARY 0.623

MANCHESTER 0.610

CLARENDON 0.552

TRELAWNY 0.519

ST. ANN 0.462

HANOVER 0.453

ST. ELIZABETH 0.295

ST. THOMAS 0.280

PORTLAND 0.2029

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Pivotal Transactions 1) Here we analyze some of the most pivotal transactions to have taken place over the years of

analysis. This consisted of 4 transactions each worth J$1,307,805,078 in St. James in May

2013. The highlighted area represents the total area sold, which were separated into

numerous lots.

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2). A transaction in St. Andrew worth J$ 1,000,000,000 June 2013, 18,767 SQ.M on Marcus

Garvey Dive. Highlighted area represents the total area sold.