Magwall Jamaica uses a patented building system known as Magwall, which was developed in Canada. They have reportedly invested some US$1 million in a construction factory that was established at the Kingston Free Zone in early 2011. Pending some final paperwork and approvals by the National Housing Trust (NHT), Magwall Jamaica says it is almost ready to make the dream of affordable housing solutions a reality for Jamaicans.’

They have already provided the following size and costing examples:

• a 900 square-foot 2 bedroom, 2 bathroom (with pitched roof) model which can be sold, turnkey, at J$4.5 million
• a 400 sq ft, 1 bedroom, 1 bathroom will be offered fully turnkey at a purchase price of J$2 million with a flat roof. With a pitched roof, the cost will be J$2.5 million
• a 1,350-sq ft, 3 bedroom, 2 bathroom unit will be offered at $5 million (flat roof) and $6 million (pitched roof)

Note, the estimates above do not include the cost of the land on which the house is being built.

Additional highlights:

• Magwall is manufactured by laminating two sheets of Magboard — a specially developed and engineered magnesium oxide sheathing — to a sandwich of expanded polystyrene foam (EPS) to form a panel with a specially developed structural adhesive
• The finished Magwall SIPS are then carefully assembled to form walls, roofs and floors of buildings of all types and sizes — the thicknesses of the walls range from 4.5 inches to 12.5 inches
• Magwall is a “green” product”; it is natural and chemical free. It is also hypo-allergenic and will not give off any dangerous gases or vapours (i.e. no risk of health damage to occupants)
• It has much lower cost of production compared to conventional building methods, allowing it to significantly cut into the typical price range of homes
• Magwall Jamaica is providing homes at $4,500 per square foot, when recent research has indicated that the cost of building a home (in Jamaica) will usually cost in the region of $10,000 to $12,000 per square foot
• The Magwall building system has been tested and proven to be able to stand up to the most severe hurricanes and earthquakes. Its transverse load – the measurement of the wind resistant of a panel – maxed out at 360 pounds per square-foot.
• The Magboard itself contains similar properties to that of building with concrete from a load bearing standpoint; there is also a degree of flexion in the board, so that it could twist in an earthquake or storm event as well (typically, when buildings fail, it is generally because the concrete essentially shakes itself to pieces)
• Magwall is fireproof, termite proof and mold proof
• The Magwall material also has thermal efficiency – an occupier of a Magwall home can expect to see energy savings of between 60-75%

Not a good sign for Jamaica’s real estate sector which is already struggling from the local, regional and global economic slump.

Data from the NHT shows the following:

• As at December 2008, the ICHP compliance rate was 60%
• The average compliance for the entire 2008 was 65% (this is 12% below the highest month of compliance, which was in April)
• Delinquent mortgagors from the ICHP owe the NHT J$11M as at the end of December 2008

The ICHP was started under the People’s National Party administration in 2004 as an urban renewal program. It was however suspended by Prime Minister Bruce Golding in April 2008. Here’s why he suspended the programme:

• At the time of its suspension, the NHT had already spent J$2B of the $5B which was projected to build 3000 houses, but less than 20% of the houses had actually been built.
• The NHT was calculated as facing an estimated bill of J$15.5M to complete the houses; money that the Jamaican Government just doesn’t have at this time.

Prime Minister Golding later announced plans to relaunch the programme for the benefit of hundreds of Jamaica’s inner-city residents, and pleaded with beneficiaries to make their mortgage payments. But many are said to be struggling because of the general downturn in global economies and Jamaica’s economy. Many are struggling to make ends meet and when it’s a toss-up between buying food and paying a mortgage, it’s obvious which one will actually take priority.

Here’s what’s been happening lately:

• These days, houses and other properties on the market are being sold at a painfully slow pace. Individuals seemingly no longer have the disposable income or deep pockets to secure properties, and the market has thus slowed down considerably.
• Many real estate developers have been force to stall or shelve development plans.
• Some real estate developers have been left with dozens and sometimes hundreds of unsold units, as the market just doesn’t seem to be there any more.
• The cost of raw materials has sky-rocketed; likewise there has been a spike in domestic interest rates. Both have combined to have a devastating impact on Jamaica’s real-estate business.
• The high end (properties valued at over J$20 million) of Jamaica’s real estate market in particular seems to be contracting. For properties under J$15 million however, there does seem to be good strong demand still.

There is no doubt that a slow-down is happening. Several local companies have confirmed such – Geon Group, which builds high-end homes, has had to put some projects on hold. Kemtek Development and Construction Limited has complained that units that would normally have been sold in a flash are still sitting there on the market for almost a year now.

As with other global markets, consumers (buyers) are feeling the pinch and are holding on to every dollar that they can. They are not making real estate investments like they would before. What’s next? Stay tuned to propertiesjamaica.com for updates.

If you’re considering moving there, and wondering where to live in Westmoreland, here are our top picks:

1. Nordutch Gardens – gated community located in the Llandilo community, just outside Savanna-la-mar (the capital of Westmoreland).
2. South Sea View Park – located almost directly on the beach, close to the border with St Elizabeth, and on the outskirts of the fishing community of Whitehouse. It’s a top-notch beach front development in a nice, quiet community.
3. Colluden – located almost next-door to South Sea View Park mentioned above, this development spans both sides of the main road, and there is a view of the Caribbean Sea from any angle.
4. Campbleton Gardens – established almost 20 years ago and located in Petersfield, Campbleton Gardens is a nice quiet middle income community, located just minutes from the sugar cane hub of Frome.
5. Ocean Terrace Estate – located near Bluefields, this residential / resort community development overlooks the sea. It was in the news recently when the developer presented world Olympic champion Usain Bolt with a piece of land (valued at J$6.5M) in this community.

That’s propertiesjamaica.com‘s take on where to live in Westmoreland!