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March 2015 Panama Real Estate Market Update

March 2015 Panama Real Estate Market Update

By in Blog with 6 Comments

March 2015 Panama Real Estate Update

 

Property prices are up on residential real estate in Panama City, Panama compared to 2014. However, new construction starts and disparate pricing are having a negative impact on existing inventory in 2015.

 

Days-on-market for the first quarter of 2015 have increased from 90 days in Q4, 2014 to roughly 120 days in Q1, 2015.  The pricing run up in 2014 in certain areas hit the double digits, and buyers are starting to second guess prices in Panama City, Panama’s top areas including Punta Pacifica and Balboa Avenue, where some sellers are trying to achieve prices crossing the threshold of $3,000/m2 — levels never seen in the market before except in certain exceptions (most notably the Trump Ocean Club).

 

New construction in the Santa Maria area continues to hold the highest price per square meter in the city ($3,250 list and at or just under $3,000 sell) with front-line, high-end Costa del Este apartments achieving just under the $2,800/meter mark on final sales prices.

 

Because there is no single, definitive multiple listing service in Panama, property owners in a period of appreciation tend to overprice properties based on what their neighbors have listed for, causing prices to increase in a disparate manner. This often causes buyers to second guess a  purchase decision, causing supply to remain stagnant and market forces to eventually drive down price levels to a more realistic middle ground.

 

New construction pricing in the city-center (while it varies by neighborhood, amenities offered, and level of finishes) is generally being priced between $1,750/meter in an area like San Francisco to as high as $3,000/meter in areas such as Calle 50.  Based on the variance of published price lists from one month to the next, an estimate on absorption depending on the project (and the stage at which it’s in) is between 0-8 units sold per month.

About The Author

Kent Davis, founder and Managing Director at Panama Equity real estate, has been widely quoted in publications such as Wall Street Journal, Time Magazine, The Miami Herald and the Financial Times for his unabashed views on the Panama real estate market. Panama Equity is regarded as one of the most active real estate agencies in Panama and Kent’s articles, reports, and market research projects have been syndicated by press agencies including Bloomberg and the Associated Press.   Connect with the Author via: Email | LinkedIn | Facebook | Google+

6 Comments

  1. matteo squadrin says:

    Hi Kent,

    I’ve found your outlook very interesting.
    I’m living in Panama from the 2013 and after more than an year renting I wanna buy a property.
    I’m looking for a small villa in coronado/gorgona/san carlos area or an affordable price apartment in a brand new building.
    Have you got some more properties that are not listed on your webpage?
    In your opinion how will be the price’s trend for the next 6-12 months?
    It’s convenient to buy now or it’s better to wait?

    Many thanks

    • Kent Davis says:

      Matteo,

      Thanks for taking the time to contact us, and congratulations on being in a position to consider buying some Panama real estate. I’ve got Carlos, our Coronado properties expert set up to contact you. He runs our Panama beaches office and should be able to give you some good insight on the market.

      Personally, if you are in a position to wait a few months, I think prices may be trending downwards out at the beach at the very least until the end of the year. WE are pretty bullish on 2016 though, given the opening of the expanded Panama Canal!

      Cheers!

  2. kevin says:

    Hello I am looking to buy a large 3 bedroom condo around 150–200 square metres in the marbella district of panama cuty I prefer unrenovated so older is best…what shud my budget be for such a property? Best regards kevin

    • Kent Davis says:

      Kevin, thanks for your email. There are a few older properties that you can get for as low as $230,000 after some negotiation. That would be a smaller three bedroom of around 1600 square feet. We’ve got a few listings in that area if you’d like to set up an appointment to have a look.

      Are you currently in Panama?

  3. Stefania says:

    Hi Kent, I’m looking for a small new apartment to buy. What do you think of the project in Casco Viejio? due in 2017 I believe, it’s selling at decent price, is it a deal or not? if not, what’s the best value right now in Pan city new buildings?

    • Kent Davis says:

      Stefania, I believe you have been in touch with Juan Camilo one of our buyer’s agents for the Casco View development…very nice project by the way!

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