Shelly-Ann Thompson, Freelance Writer
- PHOTO BY WINSTON SILL / FREELANCE PHOTOGRAPHER
Rent costs have been rising and real estate analysts say they will continue to increase. The triple factors of rising real estate prices, job creation, and demand and supply, have contributed to the increase. This week, Lifestyle explores the dilemma of rental in the Corporate Area.
'Constant Spring, Kingston 8, newly refurbished two-bedroom, two-and-a-half bathroom town house: $60,000.'
'One-bedroom flat, Kingston 20: $28,000.'
'Two bedrooms, two and a half bathrooms, Kingswood town house, Devon House area: $45,000 per month.'
THESE ARE actual rental quotations from this week's Sunday Gleaner. These advertisements show that rent in Kingston and St. Andrew is not cheap.
A few of the placements for rental in the classifieds were even quoted in U.S. dollars. For instance: 'Three-bedroom town house: US$2,000-US$3,000.' Another offer: 'Two-bedroom, air-conditioned loft apartment at East King's House Road, US$1,000 per month'.
Since last year, residential rentals in the Corporate Area have increased by about 30 per cent, said real estate broker, Joel Grant.
Mr. Grant stated that rent continues to increase as the value of properties in high-demand suburbs such as Liguanea, Constant Spring and Mona is rarely under $10 million. Plus, tenants have in recent times flocked apartment complexes and gated communities as opposed to traditional residential communities in the Corporate Area.
FORCED TO RENT
Several of the properties up for sale, including apartments, which were advertised in the classifieds, were close to or surpassed the $10 million mark.
One advertisement states: 'Two bedrooms, Manor Park: $12 million', and 'Long Mountain three-bedroom town house: $17 million'.
"The cost of buying a property is high so persons are forced to rent," said Mr. Grant. "Landlords or homeowners know this, so if they hike the cost of renting their properties, people will rent, because people want somewhere to live."
Grant, who is a licensed broker in Jamaica and the United States, suggests that rental rates in the Corporate Area have surged in the past 12 months.
He said, one year ago, a Constant Spring town house, previously rented for $40,000 could now stretch your pocket up to $55,000, while a two-bedroom house in Liguanea priced at $60,000 per month, could pull down $85,000.
There is some credence to Mr. Grant's claims.
A few placements in last year's Sunday Gleaner dated July 17, 2005 read:
'New Kingston area - unfurnished two-bedroom, two-bathroom, second-floor apartment with security, air-conditioned, ceiling fan: $60,000'.
'Beverly Hills, one room, bathroom, single professional $12,000.'
'Three-bedroom town house, three and a half bathrooms, off Waterloo Road, Parkland South, electronic gate: $50,000'.
"People are frustrated, and they see it for themselves in The Sunday Gleaner, but there is really nothing that is cheap for renting. They drive around all day on a Sunday looking for somewhere cheap and get nothing. That's the reality," said Mr. Grant.
Outside of Jamaica, it is not unusual for cities or capitals to be the priciest rental areas. The current priciest rental markets in the United States are New York City, San Francisco and Los Angeles, states an article posted, last month, on www.msn.com. This was contributing to difficult building constraints, notes the article.
Over the past decade, rent costs have been rising rapidly in Kingston and St. Andrew, said Desmond Spence, senior inspector at the Rent Assessment Board. "Within the last six to 10 years a lot of people have been moving into town."
He attributed the spike in demand partially to the fact that more persons are seeking tertiary training and employment in the city. "Costs rise as people are migrating from the country to town and due to the shortage of houses, people are willing to pay more for rent and landlords are hiking fees," said Mr. Spence.
However, tenants are feeling the brunt of high costs.
Ruth Fraser, also a real estate broker, noted that persons were complaining about the increasing rental charges, "especially tenants with children."
ADDITIONAL PRESSURE
"There are many landlords who do not want children within their homes, no matter the age of the parent or couple. So it puts an additional pressure on these tenants to find somewhere that is reasonable and convenient," said Ms. Fraser.
Still, do not expect rent cost to remain steady or decrease.
"The worst part is that people are willing to pay those hiking prices and that's the sad part. People are paying it, hence the cost of rent will keep going up," said Mr. Grant.
Young professionals, those recently out of university, who are earning a start-out salary, are feeling the brunt of the high cost of renting in the Kingston areas. Many university graduates who are from the rural areas and have relocated to Kingston have resorted to living in Corporate Area environs, and Portmore, St. Catherine.
Karlene Brown, a young teacher, has changed residences in Kingston three times in two years.
"It is difficult to find somewhere nice - a one bedroom - that is reasonable for, say, $15,000." However, Ms. Brown has for the past couple of months settled in Angels Estate, in St. Catherine.
The community, which is on the outskirts of Spanish Town just off Highway 2000, is "quiet and the rent is cheap," she said. She pays $18,000 per month for a self-contained, two-bedroom house with all the amenities such as washing area and "lots of yard space".
Ms. Fraser is encouraging persons who are finding it difficult to rent houses in the Corporate Area to seek reasonably priced options in nearby St. Catherine.
"You have to start somewhere and maybe it is best to live somewhere like maybe Portmore. Rent there is reasonable in comparison to Kingston and it is really not that bad living in Portmore, as some people make it seem."
Mr. Grant also suggested that persons should shop around smartly and choose wisely. "If you cannot afford it, maybe you need to go out of town," he added.
Ms. Fraser advised that persons should take advantage of their National Housing Trust benefits. "It is best to put the money into something of your own," she said.
Want To Stay in Kingston - Move to the 'Hills'
Rent costs are not high everywhere in the Corporate Area. Landlords in certain sections of Red Hills, Irish Town and Stony Hill have been forced to lower their rents. Factors such as the distance to the central hub of the city and adequate utility amenities contribute to the competitive costs.
An advertisement in this week's Sunday Gleaner reads: 'One bedroom, kitchen, bathroom in Red Hills, $11,000.'
Mr. Grant quotes that a one-bedroom in Red Hills is for $15,000-$30,000, while in Stony Hill, a one-bedroom goes for $20,000-$45,000.
"Not in this lifetime would you be able to get somewhere for this in central Kingston," said Mr. Grant.
"It is more affordable because the demand is not as great as that of the central, on the flat," said Mr. Grant.
However, not all areas of these communities are cheap. As another placement in the same Sunday Gleaner states: 'Three bedrooms, three bathrooms, one acre of land near Stony Hill Square: $45,000 monthly.'
"It depends on how large or recently built the house is."
Yet, persons should take advantage of the reasonable cost of renting in the hilly areas as they might soon increase, said Ruth Fraser.
"When people cannot afford the traditional areas such as Constant Spring or Liguanea, more persons will be moving to these areas. Once people notice the demand property cost will rise. It might not rise as quickly as the other areas, but they will."
