NHT, private developers to pump $55b into St Catherine housing
Published:Sunday | February 2, 2020 | 12:15 AMKarena Bennett - Business Reporter
An estimated 5,031 new housing developments are expected for the parish of St Catherine over the next two years in response to increasing demand for affordable residential units.
The developments, which will come from both private developers and state agency the National Housing Trust (NHT), are budgeted at some $55 billion, the majority of which are planned for the fast-growing Portmore and Spanish Town environs.
The NHT is expected to take the lead on the development of the housing units in the parish, with 4,801 units or 95 per cent more than the 230 housing units planned by private developers, according to applications filed through the National Environmental Planning Agency (NEPA).
Three developers, Roseneath Development Limited, Kevin Malcolm, and Wayne McKane have all had their applications approved by NEPA between December and earlier this month for the development of 178 residential units spanning Roseneath, Old Harbour; Rosemary Castle, Portmore; and Happy Content, Portmore. The remaining 52 units will come from private developer CEAC under its housing development arm, Smart Homes, but the company still awaits approval.
Business Development Manager at CEAC Howard Coxe told the Financial Gleaner that the company will invest US$6.5 million ($910 million) in a gated complex consisting of 52 two-bedroom, one-bathroom units. The lots which will span 4,000 to 5,500 square feet, are estimated to be sold for $17 million each.
To the southern side of St Catherine, Kevin Malcolm is planning the development of 103 town houses in Rosemary Castle, which sits in the vicinity of Naggo Head, Portmore.
“I acquired the 14 acres of land last year and decided to construct residential housing because of the commercial activities happening in Portmore. A lot of BPOs are going up, and people are looking for somewhere affordable to call home,” Malcolm told the Financial Gleaner.
Rosemary Castle is expected to bring to market 103 two- and three-bedroom town houses each covering 4,000 square feet. Malcolm has also pitched plans to develop the complex as a gated area, with amenities such as a daycare and a pre-school.
Entrusted with the mission of increasing and enhancing the stock of available housing in Jamaica as well as providing financial assistance to Jamaicans wishing to build, buy, or repair homes, the NHT is partnering with private contractors like West Indies Home Contractors Limited (WIHCON), to increase the country’s housing stock.
So far, the Trust has broken ground for the construction of 1,200 two-bedroom houses at Silver Sun Estates in Innswood, St Catherine, in partnership with WIHCON, under the NHT’s new Guaranteed Purchase Programme, through which the housing agency agrees to purchase houses for its customers that are designed and constructed by developers.
Ground has also been broken for 110 single-storey two-bedroom duplex units on five hectares (12.21 acres) of land, which is located along the westbound side of Mandela Highway in Twickenham Park.
UPCOMING PHASES
Plans are under way for the commencement of phase two and three of the Orchards in March and May, respectively, bringing on stream another 364 developments. NHT’s Roseneath, Old Harbour, development of 140 units is expected to commence in May and will be followed by Hellshire phase two and three in Portmore spanning 205 homes in July. Another 50 units will come from the Mercury Gardens, Spanish Town, in September.
NHT’s biggest project for 2020-21 – the Villages of Colbeck, comprising 1,874 housing units to be developed in five phases – should see its groundbreaking in March 2021. The Old Harbour development will come in at a cost of $24.08 billion. Also under way for 2021 is the construction of 33 units for Villa Nova, the Old Harbour Road project, and 825 units from the Bernard Lodge development, which sits between Spanish Town and Portmore.
“Kingston and St Andrew do not have a lot of lands left, and the prices tend to be much higher because of the supply and demand. What St Catherine still has is open pieces of land to facilitate these developments, plus quite a few commercial activities are happening out there,” Deborah Cumming, managing director and Broker at Century 21 Heave-Ho Properties, told the Financial Gleaner.
“Lots of business processing outsourcing companies are looking for space and buildings in St Catherine, and there’s definitely a feeling that the parish will continue to see a rise in housing developments,” the real estate professional said.