This article in La Prensa gives little new information, but it does have several pundits talking about price reductions of between 10-25%. Maybe reality is starting to set in after all. At the end of the article it touches on the matter of rentals in Condo's.
The property boom in Panama City populated by large apartment buildings. Residential projects for customers with high purchasing power.Many of these projects were absorbed by the market for sales, especially in 2006 and 2007.
However, with the arrival of the crisis and the consequent slowdown in activity, many apartments were purchased in order to be resold finished on the rental market, causing prices have receded.
This phenomenon has occurred more in the new apartments that have a selling price of between 200 thousand and 400 thousand U.S. dollars, says Wilson Ruiz, vice president of the Panamanian Association of Brokers and Real Estate Developers (Acoba).This segment was one of the biggest development was when the wind was favorable.
The intensity of the fall, there are various estimates. Ruiz himself speaks of 25%, while Ivan Carlucci, former president of Acoba, said that the fall in prices may have been 10%.
As the sources agree is that the rent has withstood the crisis better than selling.
Rents have been sustained by the restrictions on banks to credit the arrival of foreigners, increasing the cost of products sold and open competition of the apartments with offices and hotels, as many foreign businessmen have taken the option of leasing to condos combine office and residential accommodation, "said Carlos Lopez, director of Appraisals and Consulting CB Richard Ellis in Panama.
If prices have fallen in the new apartment rentals, has not done the same in homes that are several years old.
The equation has been reversed: a growing demand for limited supply. This situation has led in some cases, people have been renting for a long time seen the owners attempt subirles shares, knowing they can find tenants willing to pay more.
On the market outlook, analysts perceive a situation "stable" in the medium term, because the number of projects are under construction, "for which tends to return to balance supply and demand," said Lopez.
Rent and the challenge of coexistence
The apartments in housing projects has created some tension in coexistence.
Several PH administrators submitted their representations to government authorities by the presence of strangers in the condominiums and perceived attitudes that deviate from the normal behavior of families.
State officials held discussions with managers themselves PH and representatives of the real estate sector. One of the proposed solutions is to establish a minimum number of days to rent an apartment in a residential building.
This idea, however, does not satisfy the undertakings engaged in renting apartments for short periods of time, they see their business at risk and warn that such a limitation would disadvantage Panama as a tourist destination, as this practice is common in other countries.