Speculators Need Not Apply
St. Maarten and St. Barth attract homebuyers who actually want to live there. It’s not hard to figure out why.
By Lauren Varga
There’s a trend on the islands of St. Maarten and St. Barth: Families come in for a quick getaway, but stay and call the islands a second home.
“When [timeshare and rental] clients start staying in St. Maarten, they experience how it is to live here and they experience how the locals live,” explains Anju Snow, co-owner of RE/MAX Island Properties in St. Maarten. “They fall in love with St. Maarten and they decide to purchase for their own.”
Measuring just 37 square miles, the friendly Caribbean island is divided into two territories — the Dutch side (St. Maarten) and the French side (St. Martin) — and is a melting pot of cultures that offers a progressive lifestyle mixed into a tropical oasis.
According to RE/MAX Island Properties Realtor Peyton Cromwell, there are more than 100 nationalities on the Dutch side of St. Maarten alone.
In recent years, St. Maarten has put emphasis on luxury condo developments because of the island’s small footprint. The condo projects, including Coral Beach Club, are making it possible for clients to purchase their very own beachfront oasis.
Located in the Dawn Beach area, Coral Beach Club is a residence-resort property that affords owners private pools, concierge service and quality materials along white-sand beaches. The condos range from $650,000 to $2.3 million with the option to place units within a rental program.
In addition to making more beachfront property available, Snow says the luxury condos have brought a higher tier of clientele back to the island.
Not only do buyers on St. Maarten know what they’re purchasing, they know that their new neighbors and friends are purchasing for similar reasons. In discussing the demographic of buyers at St. Maarten’s luxury condos, Cromwell says, “It’s not a bunch of speculators. Most of the people are buying to stay here and live here.”
Personal preference changes from client to client. For some, a single-family villa suits them better. Villas will range from $1.25 million (beach view) to $2.3 million-plus as you get closer to the beach.
Perks, such as no annual property tax and no capital gains tax, add to the ease of island ownership. Perhaps more important is the single fact that “you can get a good return on your St. Maarten investment,” says Jonathan Schaede of Sunshine Properties. “People coming to St. Maarten are coming here because not only are they getting a vacation, their money is getting a vacation.”
St. Maarten also serves as a major hub for those traveling to other Caribbean islands, such as St. Barth. Eight square miles in size, the exclusive island of St. Barth can only accept visitors on short-take-off and landing aircrafts or yachts. The thrilling descent over a mountainside and short landing, which ends at the beach of St. Jean, captivates a certain echelon of clientele.
“A special island like St. Barth does not see the same volume of visitors that other Caribbean islands may have,” explains Tom Smyth of St. Barth Properties Sotheby’s International Realty. “Those investing here understand the special nature of St. Barth and are not just shopping for property in the Caribbean. They specifically want only St. Barth.”
The island may be smaller in land, but its luxury real estate market commands a high-end price tag. In the St. Jean Beach area, a luxury property can exceed 20 million euros, says owner of Sibarth Real Estate Christian Wattiau. The price point will likely snag a recently built, two-bedroom (at minimum) home with the highest finishes.
Wattiau is very familiar with luxury prices on St. Barth; in 2009 Sibarth Real Estate sold a 70-acre property for three times the previous Caribbean record. “People were sometimes surprised that the price could be commanded here,” says Wattiau. “Now that people visited the island, it’s true that the island is on their mind.”
According to David Vandernoot of RE/MAX Island Properties in St. Barth, now is the time to buy.
“The value of houses has been steadily increasing for decades and in these tough economic times, prices have readjusted accordingly,” he says. “The inventory is quite high, but bargain hunters seeking 30- to 40-percent price drops have all left disappointed.”
Recent inquiries, showings in the 20 million euros neighborhood, and a positive increase in demand have St. Barth agents optimistic for 2010.
“I believe we will continue to see luxury buyers recognizing the security in investing in St. Barth,” says Smyth. And, if their thoughts are in line with Vandernoot, they’ll see that, “Owning any kind of villa in St. Barth is a luxury, no matter what the price!”
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