Jamaica real estate market conditions
and supply affects the real estate market in any and every economy. The
trend setters of the market have to look out for what the consumer wants
and deduce how much they would like to pay or is willing to pay for said
real estates at a specific point in time. From this we see that the real
estate market is the same like the labor market or any other one out
Whenever there is a change in the equilibrium, for example and increase
in supply per say, buyers will then develop. The excess supply will
allow for the buyers to get properties at a reasonably lower price.
At this time some builders may stop building due the drop in prices.
However, if there is a demand increases a seller’s market will be
created instead. Sellers can now negotiate a higher pricing for their
property and will make a sale as buyers are basically competing for the
limited space that is available. Buildings will then resume trying and
satisfy the increase in demand.
There are a few indicators that one can look out for to see what is
going on in the market and know what is best to do.
• Locations, numbers, prices and house types that have been sold.
• Supply of existing houses that have not been sold inclusive of
• Finally, occupancy or vacancy ratios available
Houses that have been sold – In Jamaica, the amount of houses sold may
not be readily available. As a result you would have to check in with
statutory agencies, and or real brokerages to get all of that
Supply of existing houses – Unlike the US, Jamaica does not have any
mobile houses and therefore relocation is not a method through which the
supply and demand can be brought to equilibrium. Due to this when there
is a change in the equilibrium it has to be fixed by either constructing
houses to cover the increase in demand or stop construction to counter
the decrease in demand.
Vacancy or Occupancy ratios – this reflects the market similarly to
unsold houses. Therefore if there was to be an increase in the occupancy
rate then that means a surplus of apartment space is needed. This is
more likely looking at space for rent, or short period stay. So if there
is a 3 percent vacancy rate, it means that 97 percent is occupied and
that is a good housing market.
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