Mauricio Valenzuela writes for The NY Times on house hunting in Panama City.
A WATERFRONT CONDOMINIUM IN PANAMA CITY
$2,100,000
This 4,187-square-foot penthouse in Panama City occupies the 73rd floor of the 75-story Arts Tower at Yoo Panama. The 2013 building, with 256 units, is by BT Arquitectos, with interiors by Yoo, a firm founded by the designer Philippe Starck and the property entrepreneur John Hitchcox.
The three-bedroom four-and-a-half-bath condominium has sweeping views of the Panama Canal, the Pacific Ocean and the city from floor-to-ceiling windows and front and back terraces. Renovated a year ago, the apartment has an automation system including home entertainment, blinds, lighting, air-conditioning and security.
From the elevator bank, the front door opens onto an entry hall that divides the living and entertaining spaces. Beige marble floors are throughout the apartment. To the right, the powder room has a dark gray granite counter, a peacock-blue glass vessel sink and a blue-toned mosaic accent wall.
The kitchen, open to the dining and living rooms, has custom cabinets in shades of glossy espresso, taupe and charcoal gray, stainless-steel Bosch appliances, a wine refrigerator and a light gray granite waterfall counter that continues down one side of a large rectangular island with a raised breakfast bar to one side. A stainless-steel island hood hangs over a five-burner gas cooktop.
A section of the wall bridging the kitchen and dining areas has been painted purple and has a three-dimensional mini-triangle design. In the dining room, four pendant lights hang over a long wood table surrounded by Philippe Starck Masters Chairs. The furnishings can be purchased separately.
In the living room, built-in LED lights and rectangular brushed aluminum designer lamps on a diagonal form a sculpturelike design on the tray ceiling. A series of glass panels slide, turn and stack to one side, opening to the terrace. “You have a full indoor-outdoor experience,” said Bryan Bogensberger, who owns the condominium with his wife, Karen Metsos. Punta Pacifica Realty has the listing.
Across the hall from the kitchen are two bedrooms, each with an en-suite bath. One has a bronze lacquer vanity and warm metallic mosaic tiles accenting the shower wall; the other has a light-toned oak vanity, a yellow and brown glass vessel sink and rustic wall tiles in the shower.
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Across the hall from the living room is the master suite, with a crystal chandelier hanging from the tray ceiling. A sliding glass wall faces the Pacific. A mirror wall camouflages customized closets.
The master bath, outfitted in gray marble with white cabinets, has a double vanity. Glass shelves are mounted on a textured stone wall. A sliding-glass door opens to a wet room with a free-standing tub and a separate shower.
Behind the kitchen are a laundry room, a bathroom and a storage room. A 400-square-foot back terrace with 270-degree views has an outdoor fireplace and a kitchen with a 36-inch grill, a sink and a burner. Wood decking defines the sitting area; the dining section has a ceramic-tile floor.
The unit includes two designated garage parking spaces.
Hotel-like amenities at the Yoo Panama include concierge service, valet parking, dry cleaning, several restaurants including one for members only, a small supermarket, a juice bar, a poker room, children’s play areas, a gym, two squash courts and a day spa with treatment rooms, lounges, steam rooms, saunas and whirlpool tubs. Billiards tables and swings punctuate the whimsically designed lobby. There are a children’s pool and a wading pool in addition to the main pool, and private day cabanas on the pool deck.
The Yoo Panama complex of two towers is in the heart of Avenida Balboa in the Bella Vista neighborhood, close to the financial district, restaurants, bars and shops. Along the Cinta Costera, a waterfront boulevard, are bike and pedestrian paths. Tocumen International Airport is a 20-minute drive.
MARKET OVERVIEW
After several years in which existing inventory was absorbed, waterfront construction of both luxury high-rise towers and low-rise buildings of four to six stories is “finally heating up again,” said Jeff Barton, managing director of Punta Pacifica Realty.
The strongest sector of the market is made up mostly of resales in buildings in waterfront areas that have little or no more land to build on, such as Punta Pacifica.
Of more than 80 new projects underway throughout Panama City, about 20 percent are luxury high-rises, said Rafael Gangi, the director of Panama Sotheby’s International Realty.
The luxury market begins around $350,000, the average price for a one-bedroom apartment at the Trump Tower, Alvaro Rojas, the managing partner of Panama Premier Estates, a Christie’s International Real Estate affiliate, said in an email message.
Five percent of the market is above $1 million. Ten percent falls in the $500,000 to $1 million range, and 85 percent is under $500,000. Many high-end transactions are done through offshore firms, Mr. Rojas said.
“What is most notable, from a global perspective, is what $1 million buys in Panama compared to what $1 million buys in the U.S. or in other corners of the globe,” Mr. Rojas said.
Panama fared “remarkably well during the global economic downturn,” said Lucia Haines, a director of Panama Realtor, a brokerage. As a small country with fewer than four million residents, “we were very well buffered.”
But after what Mr. Barton called the “boom era” stretching from 2005 to 2010, there was a “significant correction” that lasted until the end of 2013, he said. Ms. Haines said prices have recouped, rising 5 percent to 6 percent per year since then.
In high-end buildings, which generate the greatest demand from international buyers, appreciation has been 7 percent to 10 percent annually since the end of 2013, Mr. Barton said. Sales activity increased about 20 percent in the first quarter of this year, compared with the same period of 2015.
Global politics play a role, Ms. Haines said, contributing to a “choppy” luxury market. “Because the U.S. is in an election year, a lot of people are waiting to see what happens.”
WHO BUYS IN PANAMA CITY
Most foreign buyers come from the United States, Canada, Venezuela and Colombia, Mr. Barton said. The majority are investors, though he has seen a recent uptick in buyers from Spain and Italy, who “tend to be end users relocating to start businesses in Panama.”
For expatriates, the lower cost of living, getting “out of the rat race” and political factors are major motivators, Ms. Haines said.
BUYING BASICS
Anyone can own property in Panama, Mr. Rojas said. Foreign buyers have the same property rights as Panamanians.
“Panama encourages foreign direct investment in real estate,” Mr. Barton said, with incentives such as property tax exemptions.
Mortgages can be difficult to obtain, and the process can take two to three months. More than 80 percent of transactions involving foreign buyers are in cash.
Real estate commissions, paid by the seller, are 5.35 percent of the sales price, covering the broker fee and the sales tax on it. Sellers pay a 2 percent transfer tax and 3 percent for capital gains tax.
Brokers recommend that buyers hire an attorney to perform a title search.
WEBSITES
Panama City official site: municipio.gob.pa
Panama tourism site: visitpanama.com
LANGUAGES AND CURRENCIES
Spanish; Panamanian balboa, United States dollar (1 balboa = $1)
TAXES AND FEES
Monthly maintenance is $860. There are no property taxes on this unit.
Legal fees connected with a purchase, including notary and inscription fees, are about 1 percent.
CONTACT
Jeff Barton, Punta Pacifica Realty, (011-507) 836-5991; puntapacificarealty.com