By Xenia De León for the Panama America - According to Paul McBride, the CEO of Prima Panama S.A., apartment prices could fall due to lack of demand and ample supply, who said that if there are not sufficient buyers then real estate prices will fall. It's a case of simple supply and demand, he said. "Most of the people who are buying apartments in the city are speculating or investors. This has been the reality for several years," he said. On the other hand, Rolando DarÃo Herrera, of the National Union of Real Estate Agents, said the market has not arrived at the point of decay, since in the last 20 months supply has increased. The demand, he said, is there thanks to foreigners, and that many of the projects are being sold in pre-construction. He added that in general the real estate sector believes that major projects such as the expansion of the Panama Canal will generate demand among executives, in addition to the international agencies that are moving their offices to Panama. (more)
Editor's Comment: Ask yourself this question - Are real estate prices for apartments and condominiums in Panama City going up or down right now? The answer of course is that prices are rising. That's the Econ 101 answer. The Econ 904 question is when will that turn around - and no one has that answer right now. There is one opinion per person so just ask anyone and they will tell you what they think will happen. The investors and speculator's vote with their checkbooks, and in reality they are the only people exposed to a whole lot of potential downside risk, and the only way they will realize a loss is if they are forced to sell a property for less than what they paid, and so far that's not happening. If you buy a property now and then have to wait for five years while the market cycles, and then you sell it for a profit then you just realized some time and investment constraints. I want to talk to someone who was flipping options in the Ice Tower - a person who bought early and then sold that option to someone else (a speculator) at a higher price per meter than what they paid. The developer is only going to refund the original price paid, so there might be someone out there who actually lost money speculating in the Ice Tower. If they exist, I would like to talk to them.(Article Continues)Nevertheless, he also said there are many empty lots in Panama City that have been bought by construction companies and promoters in order to build buildings in the near future.At the moment there are 175 buildings under construction in Panama City, another 120 have been approved for construction, and an additional 80 are in the process of being approved.McBride said promoters will always build, although are not sufficient ready people to buy.BIENES RAICES | Por falta de demandaPrevén caÃda en precio de apartamentos Continúan las construcciones. Xenia De León PANAMA AMERICALOS PRECIOS de los apartamentos podrÃan bajar por la falta de demanda y la amplia oferta inmobiliaria.Asà lo plantea Paul McBride, CEO de Prima Panama, S.A. al indicar que si no hay suficientes compradores, entonces los precios del mercado caerán. Es simple oferta y demanda, afirmó. "La mayorÃa de las personas que compran apartamentos en la ciudad son especuladores o inversionistas. Esto ha sido la realidad por varios años", aseguró. Por su parte, Rolando DarÃo Herrera, de la Unión Nacional de Corredores de Bienes Inmuebles, sostuvo que todavÃa no se ha llegado al punto de la decadencia, ya que en los últimos 20 meses aumentó la oferta.La demanda, dijo, está llegando a los extranjeros, debido a la frecuencia de personas que están comprando y porque la mayorÃa de los proyectos en pre-venta se están vendiendo.Añadió que el sector espera que los proyectos como la ampliación del Canal de Panamá generen que una cantidad de ejecutivos demanden apartamentos, al igual que las sedes principales de los organismos internacionales que se ubiquen en el paÃs .Sin embargo, manifestó que están observando en la ciudad de Panama una cantidad de lotes vacÃos que han comprado personas y empresas para construir en un futuro cercano.Actualmente se construyen en la ciudad de Panamá unos 175 edificios, aprobándose adicionalmente 120 nuevos anteproyectos, y se encuentran a la espera de sus respectiva aprobación cerca de 80 nuevos anteproyectos.Mientras, McBride comentó que los promotores siempre construirán, aunque no hayan suficientes personas dispuestas a comprar.
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Editor's Comment: Ask yourself this question - Are real estate prices for apartments and condominiums in Panama City going up or down right now? The answer of course is that prices are rising. That's the Econ 101 answer. The Econ 904 question is when will that turn around - and no one has that answer right now. There is one opinion per person so just ask anyone and they will tell you what they think will happen. The investors and speculator's vote with their checkbooks, and in reality they are the only people exposed to a whole lot of potential downside risk, and the only way they will realize a loss is if they are forced to sell a property for less than what they paid, and so far that's not happening. If you buy a property now and then have to wait for five years while the market cycles, and then you sell it for a profit then you just realized some time and investment constraints. I want to talk to someone who was flipping options in the Ice Tower - a person who bought early and then sold that option to someone else (a speculator) at a higher price per meter than what they paid. The developer is only going to refund the original price paid, so there might be someone out there who actually lost money speculating in the Ice Tower. If they exist, I would like to talk to them.(Article Continues)Nevertheless, he also said there are many empty lots in Panama City that have been bought by construction companies and promoters in order to build buildings in the near future.At the moment there are 175 buildings under construction in Panama City, another 120 have been approved for construction, and an additional 80 are in the process of being approved.McBride said promoters will always build, although are not sufficient ready people to buy.BIENES RAICES | Por falta de demandaPrevén caÃda en precio de apartamentos Continúan las construcciones. Xenia De León PANAMA AMERICALOS PRECIOS de los apartamentos podrÃan bajar por la falta de demanda y la amplia oferta inmobiliaria.Asà lo plantea Paul McBride, CEO de Prima Panama, S.A. al indicar que si no hay suficientes compradores, entonces los precios del mercado caerán. Es simple oferta y demanda, afirmó. "La mayorÃa de las personas que compran apartamentos en la ciudad son especuladores o inversionistas. Esto ha sido la realidad por varios años", aseguró. Por su parte, Rolando DarÃo Herrera, de la Unión Nacional de Corredores de Bienes Inmuebles, sostuvo que todavÃa no se ha llegado al punto de la decadencia, ya que en los últimos 20 meses aumentó la oferta.La demanda, dijo, está llegando a los extranjeros, debido a la frecuencia de personas que están comprando y porque la mayorÃa de los proyectos en pre-venta se están vendiendo.Añadió que el sector espera que los proyectos como la ampliación del Canal de Panamá generen que una cantidad de ejecutivos demanden apartamentos, al igual que las sedes principales de los organismos internacionales que se ubiquen en el paÃs .Sin embargo, manifestó que están observando en la ciudad de Panama una cantidad de lotes vacÃos que han comprado personas y empresas para construir en un futuro cercano.Actualmente se construyen en la ciudad de Panamá unos 175 edificios, aprobándose adicionalmente 120 nuevos anteproyectos, y se encuentran a la espera de sus respectiva aprobación cerca de 80 nuevos anteproyectos.Mientras, McBride comentó que los promotores siempre construirán, aunque no hayan suficientes personas dispuestas a comprar.
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