The upper end of the property market appears to be recovering with increased overseas sales and local sales in the multi-million dollar housing sector according to Coldwell Banker JW Bermuda Realty.

Realtor Brian Madeiros said in the company's most recently published preview that recent geo political conflicts, weak global equity markets and poor economic growth in North America have continued to affect their overseas market in terms of sales over $5 million dollars.

But he said that this trend looks like it is now being reversed and in fact sales could reach the same levels as last year if deals that are currently in the pipe line go through.

"There may be light at the end of the tunnel," said Mr. Madeiros. "Mid-year analysis performed by Coldwell Banker JW Bermuda Realty indicates that five properties having ARVs (annual rental value) of $126,000 (ie $10,500 per month) or more sold during the first six months of 2003 with a total sales volume of approximately $15,500,000.

"This is just slightly below the levels of last year for the same time period. Eighty percent of the properties sold had sales prices under $5 million and the average price under $5 million was approximately $2,500,000 which is marginally up from last year."

He went on to say that the upper end of the residential market was still predominately being driven by Bermuda's domestic economy.

"It is once again interesting to note that 80 percent of the sales for the first six months of this year involved individuals who were either Bermudian or overseas purchasers with direct Bermuda connections. Our market intelligence suggests that there are currently three properties under negotiations, two of which have list prices over $5 million dollars.

"Should these properties close by year end with perhaps two or three additional sales, we should once again meet last year's sales absorption rate with respect to our upper end overseas market."

He said that his company's current inventory had seen a couple of new properties offered for sale during the first six months of 2003 and that of the total number of residential properties with ARVs exceeding $126,000, approximately eight percent were currently on the market for sale.

Mr. Madeiros added: "We have noted a couple of price adjustments with particular reference to properties between $5 and $10 million, however, most vendors have been inclined to stand firm with respect to listing prices."

Mr. Madeiros went on to say that they market their top end listed properties internationally, to make sure they are exposed both at home and abroad.

He added that the company's web site statistics show that most of the enquiries they receive are in this sector either come from Bermuda or Canada and the United States.