The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

Nassau-based investors were yesterday told it is “a great time to buy in Freeport”, with the city’s real estate market having “reached bottom” following a 40 per cent price decline.

James Sarles, a broker at Coldwell Banker James Sarles Realty, told Tribune Business that income-producing rental properties should prove attractive to Bahamian buyers given continued demand and attractive prices.

He added that transaction volumes were up 10-20 per cent for the 2017 first half and second quarter to-date, due to Freeport being a ‘buyer’s market’.

“Fortunately or unfortunately, prices are way down in the real estate market,” Mr Sarles told Tribune Business of Freeport. “Transactions are increasing, mainly because there are good deals and people see the opportunity.

“Sellers are taking a big hit if they’re wiling to let go, and new buyers are coming in to get good deals. People are saying this is the only place in the Caribbean where there are deals, the only island not over-priced.”

Mr Sarles, though, said he remained “bullish” on Freeport’s real estate market, and suggested its fortunes could quickly revive if the Minnis administration delivered on all its ‘Speech from the Throne’ and Budget promises.

“I think it’s a great time to buy in Freeport,” he told Tribune Business. “If Freeport is ever going to succeed, now is the time. If the Government does what they say they’re going to do, the Port Authority starts marketing the place, I think the opportunity is here.

“In terms of transactions, for the first half of the year, the second quarter, prices were so low that they were up 10 per cent, 15 per cent and 20 per cent. There are still buyers out there now with the funds. There’s a bit of looking at the new government, and the optimism that maybe’s now the time.”

Mr Sarles said Freeport’s market fundamentals were such that commercial and residential rental properties should prove attractive for Nassau-based buyers, especially since foreign workers in the industrial sector still provide a residential customer base.

“We have a lot of commercial properties, guest and income producing properties that should make people from Nassau look our way,” he told Tribune Business.

“Sales are not strong, but the rental market is holding, and there’s a good opportunity for people from Nassau that come and pick up these buildings that need a bit of TLC (tender loving care) for 40 cents on the dollar.”

Mr Sarles said the Minnis administration’s post-election focus on Freeport and Grand Bahama had created optimism among the private sector and consumers.

However, he warned that this was unlikely to last long, especially if there was no opening and re-employment at the Grand Lucayan’s Memories and Breaker’s Cay properties.

Their continued closures have taken more than 1,000 rooms, or 59 per cent of Grand Bahama’s inventory, off-line, and resulted in the loss of hundreds of jobs - both direct and indirect.

Port Lucaya Marketplace tenants have been left fighting for survival, and desperately trying to avoid the fate that befell the International Bazaar with the Royal Oasis’s 2004 closure, with the overall effect being a dramatic downturn in Freeport’s tourism industry and wider economy.

The new government this week promised it “will not rest” until the Grand Lucayan is fully open, describing this as a major priority, but there has been little sign of progress in efforts to encourage Hutchison Whampoa and its property arm, Cheung Kong Property Holdings, to sell the city’s ‘anchor property’.

“I think the Grand Lucayan hotel is a critical component to the rebuilding of Freeport,” Mr Sarles told Tribune Business. “There’s a bit of hope here right now. Everybody I speak to - from a Rotary meeting to the street - they truly believe in the opportunity.

“It creates a positive mood, and certainly the hotel is an integral first step in moving things forward. Everyone’s patient right now, but that’s a critical first step. That’s going to be a catalyst. It doesn’t take much to move the needle.”

Mr Sarles added that any sale of the Grand Lucayan needed to be closed quickly, given that the construction of new amenities and accommodation would take a buyer one to two years to complete.

The Minnis administration has identified Freeport and Grand Bahama as central to its economic revival plans, announcing plans to market the island to three distinct tourism niches, and to promote the destination to financial services and the TV/film industry.

“What excited me when I heard the Speech from the Throne is is that for the first time I truly believe this government is going to focus on Grand Bahama,” Mr Sarles said.

He added that the election of five FNM MPs, with one as deputy prime minister, had given him further confidence. “KP [Turnquest] knows what we’ve all been through here,” said the realtor.

Urging the Government to “hold the Grand Bahama Port Authority’s feet to the fire” when it came to Freeport’s marketing and promotion, he urged both entities - along with local government - to work together to “get rid of these derelict buildings”.

Mr Sarles said property owners needed to be held accountable for their buildings’ upkeep, and added: “That’s what we need. We need everybody in Freeport; every business, every owner, every citizen and resident, to do their part.

“The Port Authority should show some teeth and knock those buildings down, forcing owners to pick things up. Every inch of Grand Bahama, everyone has to do their part, especially the city manager, the Port Authority.”