REAL ESTATE SECTOR REOPENS TO CRISIS

NON-PERFORMING mortgages have risen by more than 30 per cent over the past year. 

Past-due real estate loans have climbed to historic year-on-year levels. 

And market prices have dipped. 

As the industry reopens after the Covid-19 shutdown, Trinidad and Tobago is in the midst of a mortgage market crisis, confirmed by the Central Bank and by agents in the sector. 

Home prices have slumped by as much as 30 per cent, and it is a buyers’ market. 

Terra Caribbean, a major player in the Caribbean market, said that “as reality sets in…vendors … made the decision to drop the price for quick disposals.” 

Buyers have been “offering up to 20 per cent below asking price,” Terra stated. 

“We have not witnessed such a scenario for decades,” said a veteran manager at a well-known real estate firm. 

He and others confirmed that some homeowners left their properties in the hands of agents and migrated several months ago. 

The industry operators anticipate further migrations with the opening of the national borders and with the current depressed economy. 

The crisis in the sector came after a “frenzy in investments” about a decade ago, the manager said. 

Terra confirmed that after last year’s lockdown, “the real estate outlook for the rest of 2020 was dismal.” 

But Terra said there were “concrete trends” in 2021. 

While the company confirmed a slump in prices, it added that “the gap between asking and offer prices continue to close.” 

Operators in the sector are saying that this is a good time for real estate investments, with one factor being the current “favourable environment to borrow.” 

It was explained that bank lending rates have declined, and, in some cases, cash-back rebates are being offered.  

Real estate prices always appreciate, agents are also contending. 

Properties are considered to be the largest source of wealth in Trinidad and Tobago. 

A shining light in the industry is an increase in “staycation” properties along coastal communities, whose values have jumped as people opt for local holidays in light of recent travel restrictions and health considerations. 

Terra said prices have risen by as much as 250 per cent for such properties in Tobago, Mayaro, Blanchisseuse and elsewhere. 

“We foresee that staycation properties are here to stay for the rest of 2021,” the firm stated. 

Other developments in the sector include investments by builders in so-called “starter homes”. 

The Government has granted concessions on Stamp Duties for such properties. 

The Government has not yet re-imposed the Property Tax.