Is now a good time to buy Panama Apartments?
The boom years for Panama City apartments (or condos) is well documented. The city’s status as the region’s most important financial center, its good transport links and shiny new infrastructure projects saw a flurry of investors snapping up apartments, mostly off-plan. Buyers arrived from well known destinations such as the US and Canada and from the more unusual, including Venezuela and Colombia.
But as the global financial crisis took hold, the whiff of oversupply grew stronger. The speculator who had been driving the market retreated, sales volumes dropped and a number of condo projects stalled or suspended operations completely.
Now, as we enter the second half of 2010, some market watchers are saying that it’s a good time for investors to come back into the Panama City apartment market. That inventories are high, sellers are motivated and it’s time to push for a bargain.
Unfortunately accurate price and transaction data is hard to find in Panama – something we’ve written about before. Often the best insight into what the market is doing comes from special offers at individual projects, a review of asking prices (ideally compared with previous years) and feedback from real estate agents on the ground.
After reviewing our database and contacting local agents we were able to find examples of completed apartments priced at 30-40% below 2008 levels. These falls are not across-the-board as some developers are holding their asking prices firm. It may be a buyer’s market for apartments in Panama City, but don’t except (all) vendors to throw property at your feet.
Here’s our advice for those looking to get into the Panama apartment market:
- Refine your search to established condo towers in prime areas that are completed.
- Avoid off-plan purchases.
- Buying re-sales from individuals may be a better option than purchasing directly from developers.
- Be very clear about your objectives. Are you planning a Panama retirement? Are you more interested in a vacation home? An investment?
- Build a network of local contacts to bring you real-time deals and get up to speed with what the best local market commentators are saying.
- Don’t assume you’ll be able to get the kind of financing terms available before the economic downturn. The availability of mortgage finance has slimmed.
- Finally, take your time. Be careful not to be seduced by discounts and incentives so that you forget considerations of value.
Learn more about Panama real estate.
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Jaiden
Jul 05, 2010
I completely agree with many of the points that has been raised in this article. Panama is a great place to live. It is bordered by the Caribbean Sea to the north and the Pacific Ocean to the south. White sand beaches, lush tropical jungles, and marvelous old colonial architecture are just a few of the perks. The people are extremely friendly, and the pace of life is slow. It is sort of like sitting back in eternal summer. There are so many things to do in this developing region. Panama real estate is on its way up, so don’t miss your chance to get property now while the prices are reasonable.
Jaiden
Boquete Real Estate
Jul 08, 2010
Interesting article. I just hope the new tax laws don´t scare new investors.
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Simon from real estate investing
Jul 30, 2011
Panama is a great destination; as long as this remains true, apartments are likely to continue having a lot of demand.
It is an investment worth making!