City of Hamilton Living - 'A Decade of Success'
Article by Coldwell Banker Bermuda Realty
One decade after the construction of the first iconic residential building in the City of Hamilton (Atlantis 2004/05) city living has gained in popularity and remains a sound investment for local purchasers; despite an economic downturn and many other changes in Bermuda.
The success story, however, is not in soaring sales prices or a quick rate of turnover of property. So far, records for 2013 show only seven completed residential sales within the City with an average price in the range of $520,000. Resale on city units has remained low since the products inception, not because of an absence of demand but due to a strong ROI (return on investment). This is important to investors, who look to real estate investment to fortify their portfolio when bank rates are down and stock prices unpredictable.
Since 2008, city units have experienced the smallest rate of decrease in both rental rates and vacancy in Bermuda. Rental statistics compiled by Coldwell Banker Bermuda Realty show that 20 residential city units rented in 2013 with pricing ranging from $3,000 for single bedroom units to $5,000 for the larger units (usually 2 bedrooms). City living fits the profile for many of the transient executives in Bermuda, with secure access and convenient location. Not only does this create rental demand for city apartments, but city dwellers are good for retail and restaurant trade as well, making lifestyle choices that benefit local trade.
Equally important to rental demand in retaining ROI for city product is good governance and sound property management. These elements are key to successful developments; resale and longevity for investors. Governance means that the condominium management committee is cognizant of ongoing maintenance and expenses and budget annually for capital improvements. It also means that owners and occupiers are well informed.
In just 10 short years, residential development has proven to be somewhat of a re-awakening for the City of Hamilton. Is there future city inventory on the horizon? Will investors continue to see the value as Bermuda’s economy enters its next cycle? Will the trend towards owner occupation grow as our population ages? Whatever the future holds it is safe to say that the return on investment for city real estate has proven itself strong over the last decade and it is not a trend that we see changing soon as more and more people chose City Living.