Groundbreaking Ceremony: Mount Nelson Housing Development
Keynote Address
By
Dr the Most Honourable Andrew Holness ON, PC, MP
Prime Minister of Jamaica
At the
Groundbreaking Ceremony: Mount Nelson Housing Development
On
March 7, 2025
_______________________________________________________________
Thank you very much Dwayne.
I’m sure some of you were a bit worried for those kids a while ago. They put so much heart and soul into that dance. Very good job Richmond Primary and may I take the opportunity to commend the principal as well. She appears to be very hands on participating in the entertainment and you can always know when a school is doing well, the teachers are very much engaged.
You can’t be in the education fraternity and not take education personally. Education, it’s not just a job, it’s your life and when the principal is right there with the microphone, singing and encouraging her children, you know that she takes the education of our children personally. So, congrats to the school, congrats to the performers, and to the principal.
I know that his excellency Chen Daojiang, our Ambassador from China was looking on curiously trying to understand the performance but he was nevertheless enarmored with it because I noticed that he was nodding his head.
MP Rhoda Crawford,
Chairman Linval Freeman,
His Worship the Mayor, Donovan Mitchell,
The Custos of the Parish, Mr Garfield Green,
Mr Ruilin Ji, Senior Vice-President of Henan Fifth Construction Group,
Mr Martin Miller, Managing Director and other members of the NHT team.
Stakeholders,
Representatives of the public and private sector bodies who are in attendance,
The performers,
Representatives of the media,
And may I here say the members of the security forces who are here, who we must give them a round of applause, they have done an amazing job.
At the opening of Perth Estate Phase 2, I believe it was, the reports were not so encouraging, but I was encouraged by the spirit and determination of the officers then, and it is clear that their efforts, along with the efforts of the citizens, have paid off. A 40% reduction in murders and a 33% reduction generally overall in crime is something that must be applauded, and I applaud you, the members of the security forces and the good citizens of the parish of Manchester.
Ladies and gentlemen, it is a pleasure to be here today as we mark another significant milestone in our ongoing efforts to provide quality and affordable housing solutions for the people of Jamaica.
Today, we break ground for the Mount Nelson Housing Development, a project that symbolizes hope, progress, and prosperity. This development represents the dreams of families who will soon call this place home and aligns with our administration’s commitment to providing safe and affordable houses. The National Housing Trust engaged Henan Fifth Construction Group Jamaica Limited for the supply of 1,468 housing solutions at the Mount Nelson Housing Development.
This development is part of the NHT’s Developers’ Programme, a strategic initiative that allows us to partner with developers to accelerate the delivery of high-quality housing solutions. The Mount Nelson Housing Development will consist of a total of 1,758 housing solution distributed as follows. As I said before, 1,468 solutions are made up of one- and two-bedroom detached units as well as service lots, and these units will be at the disposal of the NHT. In other words, Henan Fifth will construct these units and sell them to the NHT or rather, hand them over to the NHT.
Then, there are 290 units for which the Henan Group will have the discretion over. They will decide how and when and to whom they will sell these units. The development will be constructed on 199 hectares; that’s about 491 acres of land located in a prime area to provide convenient access to essential services and economic opportunities. Beyond housing, Mount Nelson Development is designed with a comprehensive infrastructure plan to enhance quality of life for residents.
The community will benefit from well paved roads and drainage systems, reliable water supply and sewage treatment facilities. Now, on water, Mandeville is always challenged when it comes to water supply. It’s just the geography of this parish but you know that the government is investing heavily in the Greater Mandeville Water Supply Project, which is bringing water from St Elizabeth and pushing it up the hill and that is a massive multi-billion dollar investment. I know that there are other projects that the NHT would have done where concerns have been raised about water, and I want to give those beneficiaries of the houses the assurance that the government will do everything in its power to ensure that you have consistent water supply.
The project will have good electricity and telecommunication infrastructure and every project that the NHT is doing will have appropriately appointed green spaces. I will always want our projects to have green spaces. Yes, green spaces, lots of green spaces for exercise, for health. Nowadays, we pay close attention to the mental health of the nation and the connection with green spaces helps to improve mental health. It will also have a commercial zone for business opportunities, and the area is located within proximity to education and health facilities and so these amenities will create a modern, well-planned community that fosters growth, comfort, and convenience to all its residents.
The NHT, in collaboration with Henan Fifth, is committed to ensuring the timely completion of this development. The housing solutions will be delivered in phases, with the first set expected to be available by July 2026 and another in October 2026. Three more sets will be available in February, June and September 2027 and the final three sets in January, April and July 2028. And I expect to be around to hand over these units in all the phases.
The phased approach ensures that infrastructure and utilities are properly implemented providing residents with a seamless transition into their new homes. Henan Fifth, your project manager, Mr Wong, I am imploring you, Sir, to ensure that these units are delivered on or before the time. And I can tell that the Henan Fifth Group is as excited about this project as are the new homeowners to receive their keys upon completion. The Henan Fifth Group is emerging as a very strong and reliable partner in housing development in Jamaica. I believe they are behind the Edmund Ridge Development in St James and a few others.
At this juncture it is important to say that in the minds of the public there is an impression that the NHT builds houses. Let me clarify that. The NHT itself does not build houses. The NHT does not build houses. The NHT relies on developers and contractors so the NHT will engage the private sector to build houses, and the NHT will do this using several modalities, several mechanisms. This is just one of them and this mechanism is called the developers’ programme. The NHT relies on a robust, reliable, and efficient private sector in order to execute and meet its housing objectives and we have a few good housing developers in Jamaica that are doing an amazing job, and we welcome the Henan Fifth Group to that pool of good, reliable developers who will help the government to meet its housing obligations and commitments.
The Mount Nelson Housing Development solidifies our commitment to meeting the housing needs of Manchester’s residents. It should be noted that the NHT’s current housing plan for the parish includes two additional schemes to be constructed between 2025 and 2029. And these projects are as follows.:
Perth Phase 2 – This is an NHT scheme, number of housing solutions, 1,231 and this includes service lots and two-bedroom units, and the completion date is sometime this year. In fact, some of the houses have already been handed over and let’s talk a little bit about price points. Again, there seems to be a notion in the minds of the public that the NHT is placing housing on the market that is over and above what could be considered either low-income, affordable or achievable housing.
The NHT is not now providing housing that could be considered middle or upper middle or high-income housing solutions. We took a policy decision some years ago that the NHT should focus its resources and use those resources to stimulate and support bringing to market low-income, affordable housing and achievable housing. And what do we mean by that?
A low-income housing solution would be for someone who is earning minimum wage or just above minimum wage and for those persons we go even further. We not only support the supply side of that solution by providing financing and land and other supporting mechanisms, but persons who fall within the category of low-income get zero percent interest on their mortgage.
An affordable house would be one in which the person’s income could support approximately 30 percent towards a mortgage, so they are not necessarily stretching to afford the house. But of course, what is the cost of the house? If someone is earning just above low-income or maybe even substantially above low-income, but the housing price is very high, 30% of their low-income for that house could be a far stretch and very difficult, and they may not be able to afford it. So the strategy for the NHT is to try to keep the price of the house, that price point, very low so that persons who are earning low-income or just above low income would be able to manage a mortgage which would be somewhere between 30 or maybe 40 percent of their income but our Jamaican people are very ambitious so there are some persons who are within the low-income band or maybe just above low-income or maybe just below middle-income and they are still going to stretch, make the sacrifice so instead of setting aside 30%, they may set aside 50% of their income in order to be able to afford the mortgage of a house which is in their price point.
What we are doing in the NHT is directing resources to provide the supply of housing that persons with low-income can afford. Persons can afford housing that we consider to be affordable, it’s not too stressful on their income and housing that is achievable. It’s a little bit stressful on their income, they may have to sacrifice some other things, but they are just going to, as we say, close their eye and do it. That is where the NHT is now targeted and these homes that we are breaking ground for today are targeted to low-income, affordable and achievable.
In the Perth Housing Development Phase 2, we had lots ranging from 6.4 to 8 million dollars so that is both affordable and achievable. Person’s earning low-income could set aside and pay a mortgage. And then for the two-bedroom units, and you can’t get two-bedroom units for this anywhere, 17 million to 18 million dollars. Again, that would be affordable or achievable. The market now for two-bedroom units with decent lot size, you’re looking over 20 million dollars going up to 25 million. dollars so the NHT is focusing its resources on low-income, affordable and achievable housing.
In Mount Nelson under this, the Developers Programme, 1468 units, one-bedrooms, two bedrooms and service lots in a phased delivery methodology. We are projecting that by the time these houses are ready for delivery, you would be looking at lots from about 4.5 to 6 million dollars. And the housing units could be anywhere from 10.5 to 14 million dollars.
Now let me say this clearly from now, all of these prices are subject to escalation. We don’t know what will happen in the world that will impact the shipment of lumber, that will impact cement. We don’t know what will happen that could cause a disruption in the labour force and delays in the project and so all of these prices are subject to escalation, however, that is what we are projecting, hence my imploring the Henan Fifth Group, let us work quickly, let us work efficiently because the experience has been when the projects are dragged out, the prices go up and the people don’t benefit so it is important, we rely on efficient and reliable developers and contractors in order to ensure that the Jamaicans who are earning low-income and who will sacrifice for affordable and achievable housing that they can get the benefits.
Ladies and gentlemen, the National Housing Trust Developers’ Programme is a transformative initiative designed to foster partnership between the NHT and local and international developers. It is under this programme that this development here at Mount Nelson is taking place. The programme aims to construct housing schemes on NHT owned lands ensuring that affordable housing solutions are made available to Jamaicans, particularly those who are most in need. Under this arrangement, developers are tasked with planning and executing housing projects on lands provided by the NHT.
The benefits are priced in line with the NHT’s price points for affordable housing market with a clear objective that at least 60% of the housing solutions, whether housing units or service lots must be affordable or affordable to the NHT is lowest income contributors. This ensures that the programme directly benefits those who are most in need of affordable housing and so here’s how the programme works.
The NHT provides the land. The developer plans and executes the housing project. The developer must sell at least 80% of the housing solutions to the NHT at an agreed purchase price. The developer is responsible for financing and executing all aspects of the project, including planning, designing, obtaining approvals, construction, interim maintenance, and the handover of infrastructure to relevant agencies.
Looking ahead, the NHT has ambitious plans to expand the Developer’s Programme between 2025 and 2030, and the projects slated for development are:
- Galina in St Mary, 360 units.
- Friendship in St Elizabeth, 543 units.
- Barrett Hall in St James, 1,565 units.
- Greater Bernard Lodge, Catherine Estates, 580 units.
- Dry Valley, Trelawny, 1560 units.
- And Luana in St Elizabeth, 360 units.
In total, we have another 4,968 units under the Developers’ Programme. All of these programmes, they are not in the pipeline. When you turn the pipe and you hear just air coming out, it’s not in the pipeline. These programmes are on the train track. Yes, they are rolling out and they’re going to come one behind the other. And believe me, I will be there to greet every train stop on the housing development.
The 2023 National Housing Policy highlights that housing demand is outpacing supply. And if this situation continues, it will cause the price of housing to be always escalating and that will lock out many Jamaicans, particularly young people and low-income earners. What the Ministry of Housing is doing, along with the NHT as its main implementing arm, is to build at least 15,000 housing solutions per year, that’s what we’re trying to do.
And since 2016, we have reformed many institutions and created new ones. We have reformed the HAJ, we have reformed the Jamaica Mortgage Bank, we have reformed the NHT, and we have created the New Social Housing Programme. We have created the Greater Bernard Lodge Project, which I toured last week, which will bring between 10,000 to 15,000 housing solutions to the market, and you can look out for other developments like Bernard Lodge.
And all of this is moving us towards our commitment to build 70,000 houses in the next three to five years. Once we get to that 70,000 housing solutions, what you will see happening is the housing market in Jamaica reaching equilibrium. Meaning, you start to see a stability in prices and then more persons will be able to get their housing. That is the strategy of the government of Jamaica.
I must say that we announced this in 2020, but we were severely impacted by the COVID pandemic. That derailed many of our plans but the worst thing is that it created a runaway escalation in construction prices and building materials, but we are now back on track and the housing train is rolling out very strongly and today we are in Mount Nelson in Manchester to deliver a trailer load of houses for the people of Manchester.
Ladies and gentlemen, I urge you to keep faith. I urge you to be optimistic. I was stopped some weeks ago by a gentleman who held on to me, pulled me one side and started to unload that he is an NHT contributor, he’s living in very uncomfortable circumstances, he wants to purchase his home. The recent adjustments in wages for public sector workers has put him in a position where he is now able to afford a mortgage, he is pre qualified, but he cannot find a home and he was very distraught and no matter what I explained to him, he wasn’t comforted. He wanted to know if I could do a thing and make him get one of the houses.
Of course, there is no such thing to be done under the NHT because all the houses are subject to a very rigorous system of points which are very transparent in how the houses are allocated. But I did take heart, however, because last week I visited on tour one of our largest distributors and I took the time to meet the staff there individually and while going through and talking to the staff, a young man said, “Thank you, Prime Minister. Because of you and the NHT, me get me house.” And there were several others there who nodded and winked and said, Yes, I got my house. Many of them were in Catherine Estates. Some of them were all over housing developments and some were buying on the private market.
I bring these two perspectives to show that there are many Jamaicans who are still very much worried and concerned, indeed disturbed, that they can’t get a house and, at the same time, we must acknowledge that the NHT and the private market has been delivering consistently housing. The objective, therefore, is to get the NHT, the HAJ, and the New Social Housing Programme to ramp up, to rapidly increase, to scale up housing construction.
So as I close, right now the capacity of the housing market supported by government in terms of project size would be about a thousand to two thousand units over several phases, and that is really a limit on the private developers; that’s really their capacity, what they can do. The next phase of the housing plan is to work with our developers to increase their capacity so that they can take on projects of the scale of five thousand to ten thousand at a time instead of these relatively small numbers that they are doing currently. And we are studying mechanisms as to how we can support our local developers and contractors to rapidly scale up.
We know that the Henan Fifth Group, we know that China Harbour, two of our international contractors who have decided to work in Jamaica, we know that they have the capacity to take on these large projects. The binding constraint there would be to provide the land to be able to take on those large projects and in my budget debate, we’ll speak a little bit more about what we’re going to do to both support developers and provide larger plots of land for housing development so that we can rapidly increase the number of houses that we bring to the market to create price equilibrium so that everyone can start to plan and get their houses.
God bless you and thank you.