Property market’s wild ride

She was speaking at the Hilton Hotel last week at the launch of real estate agent and chartered surveyor Afra Raymond’s new book "Property Matters."

Lashley pointed out that in order for proper decisions to be made in the industry, research, analysis and evaluation of data are essential to informed decision making."

She added that carefully planned and executed improvement was needed to enhance the real estate industry.

As more participants enter the market, "such information becomes essential to the structured development and enhancement of all aspects of our real estate business, of the real estate market and ultimately, the real estate industry," she told guests.

Raymond noted that for anybody trying to analyse the real estate situation, the signs were very confusing and admitted his previous prediction was incorrect, that the National Housing Authority’s (NHA) housing programme would have reduced the rates at which house prices were increasing.

He said, "With output from that programme exceeding 15,000 units and price increases accelerating, I have to doubt my now predictions."

To highlight his point, Raymond gave the example of a relative of his who had purchased a new three-bedroom house in Cunupia for $395,000 and was able to sell it for more than $600,000 - a 61 percent increase in just over a year.

"This is part of the ‘ripple effect’ caused by the high prices in the East-West Corridor driving people to live in Central Trinidad but the result is a tremendous price increase with a kind of increase not seen in the ‘posh’ or ‘more established’ areas."

Lashley went on to note that the expansion of players in the mortgage financing market was to the benefit of the buyer.

"It is the success of the real estate industry, its growth and stability that have encouraged new market entrants," said Lashley, stressing that these operators must set "standards in the industry that are competitive on the basis of price, process and delivery."

She said that for the industry to expand, it was necessary to look for cost reduction and product variations that reflected consumers’ demands.

Lashley said that Raymond’s documentation of matters related to the country’s real estate industry would auger well for the industry.

Raymond said while the crime situation was of grave concern "one has to consider how long prices will keep rising if the violence continues."

"There is a point at which people will exercise their choice and leave for safer parts. That may imply more properties being placed on the market for sale with possible price reductions or it may imply a deepening of the current preference for gated communities."

He said this was evident in the fact that recently, he had seen for certain an increase in premium being paid for secure/gated communities.

Raymond described the real estate market as being a "bubble," saying that the term best reflected the fragility and bizarreness of real estate prices in the country.