WILLEMSTAD – The PAR parliamentary faction is calling on the Curaçao government to urgently develop a housing policy aimed at helping working families and young professionals buy affordable homes, warning that sharply rising property prices are increasingly putting homeownership beyond the reach of the middle class.
According to PAR faction leader Quincy Girigorie, a “normal” two- or three-bedroom home now costs at least Cg 350,000, while a mortgage on a property at that price would amount to approximately Cg 2,000 per month.
PAR argues that the situation is particularly problematic for young professionals who have studied abroad and are encouraged to return to Curaçao. Even when they find relatively well-paying employment, the party says many are unable to afford their own home.
The party points to Central Bank lending rules under which, according to PAR, borrowers can finance housing costs only up to 37 percent of their gross salary. Based on PAR's calculation, someone seeking a mortgage for a Cg 350,000 home would need a monthly income of at least Cg 7,500. That calculation assumes full financing and does not take other financial obligations, such as car loans, into consideration.
As a result, PAR says professions traditionally regarded as providing reasonable middle-class incomes — including teachers, healthcare workers and civil servants — are increasingly being priced out of the housing market. Renting offers little relief, according to the faction, because monthly rental costs can be comparable to mortgage payments without eventually resulting in ownership.
PAR wants more government land released
One measure proposed by PAR is for the government to make significantly more long-lease government land available for residential construction.
The faction disputes previous statements by Infrastructure Minister Charles Cooper that the government does not have sufficient land available for development. PAR argues that recent cases involving undivided estates demonstrate that land could potentially be made available for housing.
The party specifically points to the Plantage Vetter case. According to PAR, the government was offered the land for a very low price with the possibility of subdividing it so families and other interested buyers could obtain plots at affordable prices.
However, the government declined to take over the property, according to the faction. PAR claims this is at least the fourth case involving an undivided estate in recent years in which the government declined to acquire and develop available land, resulting in the properties ultimately being assigned to public housing foundation FKP through judicial proceedings.
The faction is critical of that approach, arguing that relying on traditional social housing development will not address the immediate housing needs of working families and young professionals.
Tourism and economic growth blamed for pressure
PAR also links the housing affordability problem to Curaçao's rapid tourism and economic development.
The party argues that while economic expansion creates opportunities, the government also has a responsibility to protect residents from negative consequences when development places additional pressure on housing and property prices.
Girigorie is therefore calling on the government to present Parliament with a comprehensive policy as soon as possible specifically aimed at enabling working families to obtain affordable homes.
The PAR leader uses unusually strong language in describing the current situation, saying Curaçao risks becoming a “wild wild west” in which working residents increasingly bear the consequences of rapid tourism and economic development.
The party maintains that the housing issue has become more than a social problem. With Curaçao encouraging hundreds of young people to study abroad and later return to contribute to the island, PAR argues that affordable housing is becoming increasingly important to Curaçao's ability to retain young professionals and its working middle class.