St Kitts Property in a Post Crash World
01 July 2011
During the credit crunch the stability and resilience of property markets in the Caribbean was proven for all to see, with prime properties in the top islands like St Kitts holding their value particularly well. Now we are hearing talk of city states, because wealthy individuals from around the world are driving up the prices of prime property throughout its top cities, which have become detached from the pricing reality of the countries in which they lay.
St Kitts nor the Caribbean will ever be a city state, but they have benefited from the same trend that is causing them; namely the fact that wealthy buyers are taking advantage of their position to get good deals on top real estate, to buy assets that will hold their value and appreciate more safely than cash, now and over the long term.
It all started in mid 2009. At the worst point in the crash no one was buying property, but now wealthy buyers had realised that it wasn't going to be a cataclysmic financial event that would bankrupt the planet, but that they had a real fear; currency devaluation as exchange rates rode a rollercoaster and interest rates froze at record lows.
This fear is what led to the gold rush, but as the value of gold peaked more and more wealthy individuals and their appointed investors were buying prime properties in stable markets.
St Kitts is one market that definitely fitted the bill. Markets that crashed were those oversupplied, and with way too much crazy lending, as well as those reliant on speculative investors. St Kitts was always a low density market; with premium properties built for discerning buyers, and with sales driven by quality not quantity; selling one unit at $500k instead of 10 properties at $50k.
Thus St Kitts property quickly became a popular choice among wealthy buyers. Now, as the world recovers and job security slowly starts to return, more and more people are able to raise finance for investments and holiday homes, and St Kitts property sales continue to increase.