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E S TAT E + P R O P E R T Y

REAL ESTATE+PROPERTY

Lifestyle plus investment opportunities

PICTURES: Craig Osment

n many ways, the Vanuatu real estate market is no different from markets elsewhere. There is a wide range of property for sale, and there always has been. There are, of course, certain ‘hot spots’ that have traditionally shown the most capital growth and captured the best sale prices. These tend to be harbour-front, lagoon-front and properties with good water views.

The ‘location, location, location’ rule applies here, just as it does everywhere else. Rental returns on good residential property are excellent and commercial properties, especially those with a retail component in or near the town centre, have a long history of strong rental returns and high occupancy rates.

It is next to impossible to find a “For Rent” sign in any CBD shop – and this has been the situation for years.

Vanuatu’s expatriate community is continually on the move to and from the country, either for two- or three-year contract postings with private companies or aid agencies based in Vanuatu, or for consultancy stints ranging from a few weeks to a few months.

This country offers picture-postcard locations that are truly breathtaking and unspoilt by over-development.

Numerous foreign investors have come here with the dream of finding an idyllic spot on a beach or somewhere on the harbour-front – and many have found just what they were seeking.

Close enough to the beach? Vanuatu has some of the most spectacular absolute beachfront property in the whole South Pacific. Foreign investors can be confident of their purchases in this stable country.

Top left: Island Property suggests that homes like this overlooking Port Vila Bay range from AU$400,000 to over a million. Left: the picture and the name says it all – Waterfront Real Estate is what this company sells.

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PICTURES: Craig Osment and Island Property

There are no restrictions on foreign investment in real estate or on the transfer overseas of money earned in Vanuatu.

Strata title legislation has seen the diversification of the real estate market in recent years, with resorts expanding their accommodation and selling off apartments or bungalows to individual investors.

As well, developers are constructing and selling apartments off the plan in and around the main towns.

As prices have risen over the years, so have people’s expectations in terms of standard of housing and construction generally. Almost gone are the old days of weekend huts on the beach with no utilities. You are more likely to find beautiful, welldesigned homes with swimming pools, for sale at between AU$400,000 and AU$1,000,000 – sometimes more.

The world-wide property boom from 2003 to 2007 brought its share of new investors to Vanuatu, many of whom bought land or developed small to medium-sized tourism projects and holiday homes.

After nearly 30 years of steady growth in development and capital gain, commercial banks offer the longest mortgages they ever have, and routinely accept registered land titles (and, more recently, strata titles) as security for their lending.

Despite the world-wide economic slowdown since mid-2007, Vanuatu continues to offer numerous opportunities in the real estate market and it is clear from actual sales, as well as enquiry levels, that activity picked up noticeably in the second half of last year.

In the tourism sector, Vanuatu has for many years swung from having not enough rooms to not enough flights.

The pendulum has once again swung to the ‘not enough rooms’ side of the equation, as tourist arrival numbers continue to climb.

This has created the opportunity for investors and developers to build everything from holiday homes through hotels and bungalows to short- and long-stay apartments.

Vanuatu’s very strong laws establishing and guaranteeing property rights can underpin the local development process.

Even though Vanuatu’s foreign investment legislation guarantees the repatriation of funds, most foreign investors, from large-scale developers to ordinary property buyers, reinvest in Vanuatu what they have earned here. And why wouldn’t they, since this country offers excellent buying opportunities when compared with similar property in Australia, New Zealand and New Caledonia.

In some ways, there has never been a better time to invest; it is still a buyer’s market, as real estate recovers from a couple of years of uncertainty.

However, as increasing confidence returns to the market, this situation may not last. If you are genuinely interested in Vanuatu real estate, now’s the time.

By Douglas Patterson

REAL ESTATE+PROPERTY

ISLAND PROPERTY Island Property is one of Vanuatu’s most experienced real estate agencies and property development companies.

Established in 1990, it specialises in all forms of property and business sales, as well as developments such as the company’s own land subdivisions and commercial projects.

Island Property employs 15 welltrained locals who speak Vanuatu’s main business languages of English, French and Bislama.

Founding Director Douglas Patterson has overall responsibility for projects and sales. He has lived in Vanuatu since 1986.

Director of Administration Kaye Patterson, who has lived here since 1992, has managed the busy Island Property office for nearly 20 years.

Kiwi property specialist Rod Neilson has 30 years of experience in real estate and construction, including several years in Vanuatu.

WATERFRONT REAL ESTATE When it comes to choosing a real estate agent, most of us want the

same thing – honesty, respect, experience and qualifications.

Waterfront Real Estate’s Francesca Grillo ticks all the boxes. A qualified lawyer and real estate agent, Francesca has extensive marketing experience and a keen eye for investment.

Waterfront Real Estate can assist you with the whole investment process, from finding your perfect property, right through to conveyancing. It is their mission to ensure that you make a safe investment in paradise.

Francesca specialises in the sale of prime waterfront land and she can also offer outstanding tropical house and land packages with her project management business GH Solutions.

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