GINN sur Mer, the $4.9-billion Grand Bahama-based development, is expecting to raise its property prices in mid-January 2008, The Tribune has learnt, a move that may surprise some given the global credit squeeze that has dampened prospects for the Bahamas' second-home market.

An e-mail circulated by Ginn's sales executive, Spencer Mallory, said: "Due to the success we have had at Ginn sur Mer this past year, Bobby Ginn has decided to raise the prices on all home sites as of January 15, 2008." Mr Mallory also advises interested persons to act now because "our prices will never be this low again. The inventory selection will never be this great or come with as many incentives".

The potential price increase is interesting as it comes during a global credit squeeze, which may make it difficult for potential clients to access mortgage and other forms of debt financing - and at ,appropriate interest rates - to meet the cost of second home purchases.

John Davies, Ginn's vice-president, was unavailable for comment as his assistant said he was in meetings. It remains unclear just how big the price increase will be.

The Ginn sur Mer development will serve as Ginn Clubs & Resorts flagship Caribbean development. The project currently under construction in West End will feature a 2,000 acre resort community that will contain more than 4,400 condominium and hotel units, nearly 2,000 single family residential home sites, signature golf courses designed by Jack Nicklaus and Arnold Palmer, clubhouses, two large marinas, a private airport, a Monte Carlo- style casino, water and swim pavilions, a beach club and a spa.

According to the Heads of Agreement for the project signed with the previous administration, any condos sold by Ginn for $250,000 or more in the period between the first sale and 20 years later will attract stamp duty at a rate of 2 per cent.
This is 8 per cent less than the normal stamp duty rate for properties of that value is 10 per cent.

The sale of the homes in Ginn is essential to the success of the development, as the Heads of Agreement states: "The timely sale of lots, condominiums and other residential units within the project to Bahamian and non-Bahamian purchasers is critical to the success of the project and the redevelopment of the West End settlement."

As a result, the government committed to an accelerated consideration of such approvals, noting that pre sales of residential lots and units were an important part of the sales and marketing of the project and would begin before any infrastructure was installed in West End.

Source: The Tribune