In St. Croix, the largest of the U.S. Virgin Islands, the average home sales price rose by 4.2% to US$332,950 in 2014 from a year earlier, after y-o-y drops of 18.8% in 2013, 10.1% in 2012 and 2.9% in 2011, based on figures released by Re/Max Team San Martin.
In 2013, the average home sales price in the U.S. Virgin Islands rose by 22.1% to US$538,369, according to the USVI Bureau of Economic Research. The recovery was led by St. John/St. Thomas, with home prices soaring by 49.6% in 2013 – clearly, most of this house-price recovery took place in St. Thomas, given the declines in St. John and St Croix noted above.
The condominium market was mixed, but on average less strong in 2014:
- In St. John, the average sales price of condominium units rose 16.5% to US$714,924 in 2014.
- St. Thomas average condo sales prices dropped 1.8% to US$219,512 during the first eight months of 2014, compared to the same period the previous year.
- In St. Croix condominium sales prices dropped 7.1% y-o-y in 2014, to an average of US$149,730.
Condo sales prices in the whole U.S. Virgin Islands fell 15.9% y-o-y in 2013, to an average of US$208,205. In St. John/St. Thomas, condo prices fell by 3.8% y-o-y in 2013 while in St. Croix, condo prices dropped 4.6% over the same period.
The USVI’s property market is expected to continue to recover this year, as more visitors come. However the USVI remains vulnerable to the overall state of the global economy.
House price boom and bust
The U.S. Virgin Islands saw a housing boom from 2000 to 2007, with nationwide home sales prices surging by 90.1%, according to the USVI Bureau of Economic Research. The condominium market experienced even bigger price rises, of an average of 133.8% over the same period.
However in 2008, home prices dropped 11.8% while condominium prices fell by 2%. Home prices in St. John/St. Thomas saw the biggest decline of 28.5%.
|PROPERTY PRICE CHANGE (2000-2013)|
|HOME PRICE CHANGE (%)||CONDO PRICE CHANGE (%)|
|St. John/St. Thomas||146.8||-39.1||49.6||161.8-7||-11.9||-3.8|
|US Virgin Islands||90.1||-16.0||22.1||133.8||-11.4||-15.9|
|Source: USVI Bureau of Economic Research|
Demand is now rising in St. Croix
In St. John the number of homes sold fell 18.8% in 2014 from a year earlier, according to Islandia Real Estate. On the other hand, condominium sales increased 12.5% over the same period.
Residential property sales in St. Croix are now increasing sharply. In 2014, the total number of home sales in the city soared by 28.8% y-o-y while condo sales climbed by 78% over the same period, according to Re/Max Team San Martin.
From 2008 to 2013, the average number of homes sold in the whole territory was 296 units per year, down from an average of 508 units from 2003 to 2007, based on figures from the USVI Bureau of Economic Research. Over the same period, the average number of condo units sold also declined to 238 from 513 units every year.
Land prices are rising
Land prices in all the territory’s major islands are now rising.
- In St. John, land prices were up by 2.8% y-o-y in 2014, according to Islandia Real Estate.
- In St. Croix, land prices also surged by 48.5% y-o-y in 2014, according to Re/Max Team San Martin.
- In St. Thomas, land prices were also up by 16.4% in August 2014 from the same period last year.
Residential construction activity remains down
In 2014, the total value of private residential permits in the U.S. Virgin Islands fell 19.5% y-o-y to US$90.29 million, based on figures from the USVI Bureau of Economic Research. However this conceals large differences – building permits are surging in St. Croix.
- In St. Thomas/St. John, private residential permits value fell 43.4% to US$46.9 million.
- In St. Croix, the value of private residential permits rose 48.4% y-o-y in 2014, to US$43.4 million
After rising in 2008 by 16.9%, the value of private residential construction permits dropped sharply in 2009 (-35.6%). The decline continued in 2010 (-7%), 2011 (-14.5%) and 2012 (-5.6%). The value of private residential construction permits finally increased 10% in 2013.
Economy: five very tough years
Tourism is the US Virgin Islands’ main industry. It generates 2 million visitors every year, and accounts for 80% of GDP. From January to November 2014, the total number of stay-over tourist arrivals in the territory rose by 3.9% y-o-y to 655,477 people, according to One Caribbean, and cruise passenger visits increased 4.3% to 2,083,890 people in 2014.
The last few years have been very tough for the USVI´s economy, despite tourism.
USVI’s GDP dipped 5.5% in 2009, based on figures from the U.S. Bureau of Economic Analysis. After a short-lived recovery in 2010 (real GDP growth of 1.3%), GDP plunged again by 7.5% in 2011. Real GDP then fell by a huge 13.8% in 2012, and by another 5.4% in 2013, mainly because of the closure of the HOVENSA refinery in 2012, which caused the layoff of around 1,200 employees.
No figures are yet available for 2014, but things look better. During the year to end-November 2014, the overall unemployment rate in the U.S. Virgin Islands dropped to 13% from 13.4% in the previous year, according to the USVI Bureau of Economic Research. In St. Croix, the jobless rate fell to 14% from 15.2% over the same period. In contrast, in St. Thomas/St. John, the jobless rate rose to 12.2% from 11.8%.
St. Croix, the “Twin City”St. Croix is the largest island in the US Virgin Islands, but is more laid back than the other two islands. Unlike St. Thomas and St. John’s mountainous landscape, one of St. Croix’s charms lies in its varied topography, which goes from uncrowded white-sand beaches to rolling hills to rain forests.
St Croix is nicknamed the Twin City because of its two main towns: Christiansted and Frederiksted. Out of the two, Christiansted is more developed featuring shops and superb restaurants with a modern setting. This town is also known for architectural and historic richness, present in its 18th-century Danish-style buildings constructed by African slaves. Meanwhile, Frederiksted, with its historic landmark Fort Frederik, has been the main port for cruise ships in St. Croix.
Some notable attractions in St. Croix include the Buck Island Reef National Monument, the renowned Cane Bay Wall, St. George Village Botanical Gardens and the Cruzan Rum Distillery. St. Croix is also the only island in the US Virgin Islands that has a casino, the Divi Carina Bay Casino.
The Virgin Islands Housing Authority is responsible for planning, financing, constructing, maintaining and managing public housing developments, mostly on St. Thomas and St. Croix, and it manages around 15% of USVI’s total housing stock. VIHA provides rental assistance to low-income families, elderly and disabled persons, with rentals based on the highest of three methods:
- Income-based: 30% of the monthly-adjusted income Total Tenant Payment (TTP)
- Welfare rent, if applicable
- Minimum rent of US$25
Currently, VIHA runs 3,345 public housing units. Approximately, 1,605 units are in St. Thomas and St. John, while the other 1,740 units are in St. Croix.