The Tribune

By YOURI KEMP

Tribune Business Reporter

ykemp@tribunemedia.net

The Prime Minister yesterday pledged that the provision of affordable, quality housing for Bahamians via private sector partnerships will be a key priority if his party is returned to government.

Dr Hubert Minnis, kicking-off the mid-year Budget debate in the House of Assembly, said The Bahamas "must look" towards public-private partnerships (PPP) to solve its growing affordable housing shortage given that COVID-19 has stretched the Public Treasury's already-thin resources to breaking point.

Describing the provision of affordable housing as critical to "near-term recovery" from Hurricane Dorian and COVID-19, as well as "long-term growth", Dr Minnis promised to bring the "Bahamian dream" of "owning a piece of the rock" within reach of more young professionals, university/college graduates and others.

Pointing to the Government's Carmichael area initiative, where "service lots" have been equipped with $70,000 worth of utilities and all necessary infrastructure, the Prime Minister said his Cabinet had agreed to sell these to buyers at $15,000 - representing a further $5,000 discount on the $20,000 price that was previously selected.

With the new price representing a $55,000, or 78.6 percent discount, to the $70,000 appraisal value, Dr Minnis said the Government now planned to replicate this model in western New Providence as it will enable Bahamian purchasers to pledge the equity as collateral for loan financing.

"Today, I am pleased to advise that through a PPP arrangement we will soon be launching the commencement of a 150-lot subdivision, upscale within the western New Providence area, that will be geared strictly to young professionals - young Bahamians, young millennials," he added.

Two-thirds of the Bahamian population live on New Providence which, as an island that is only seven miles long and 21 miles wide, has an increasingly finite supply of land. This, combined with ever-increasing demand, means real estate and property prices are constantly increasing to levels where young and working Bahamians are being priced out of the market.

Signalling his determination to address this affordability challenge, Dr Minnis recalled how his three sons would have been unable to get a foothold in the property market if he had not purchased three western New Providence lots for $40,000. Today, he added, those same lots are worth $150,000.

"Many young people fall within that category today. Land is too expensive and it's the Government’s responsibility to ensure that Bahamians can participate in what we call the Bahamian dream. They want to own a home. They want jobs and they want a proper quality of life and healthcare," he added.

“Land has been identified and we were concentrated on one set of land, 150 lots upscale with a clubhouse facility, but the demand and the request was so great that we’ve looked for more and I am proud to say that we have identified another area all in the western district and within the Killarney constituency.

"These lots, when completed, the first 150 - and of course we will expand - are worth at a minimum $150,000. We will sell these lots to our Bahamians at $50,000 so that they can get a start instead of at $150,000.

"Because they have purchased a $150,000 piece of land at $50,000, that means they would have $100,000 equity. Which bank can you not go into with $100,000 in equity and build your home without a down payment?”

Dr Minnis said duty-free concessions will be provided on construction materials employed in the construction of homes on these lots, and he warned that he will "not allow people to buy three to four lots" as a speculative investment that will then be flipped to other buyers.

He promised his administration will ensure Bahamians "have proper housing and a roof over their heads".