Panama offers affordable luxury with real value

I have often written about Panama’s plan for 2010 – 2014 to focus on high value luxury tourism.  There are a number of regions that have resort communities focusing on this and they will do well in the coming years.  The industry is still in it’s infancy but I believe destined to be successful as Panama draws customer from all over the world.  With Copa Airlines expanding its routes throughout the Americas and KLM establishing daily flights from Amsterdam, Panama will become more than a hub and jumping off point but a real destination.  Recently I made an observation of Panama and its luxury market as evidenced in the City.  

        

I like to think of Panama as the Switzerland of Central and South America where many keep their money and come here  to play knowing that while things might be a little dicey back home, Panama is a safe haven.  I often see numerous shoppers at the Cartier Store in MultiPlaza Mall as well as other high end boutiques.  While I am sure their sales are off from the height of the market, I still see customers buying $25,000 watches so it can’t be too bad.  My friends back in Miami that are part owners in Multiplaza Mall tell me that up to 60% of the shoppers are from other Latin American countries who visit here.       

One of the plans for the future of branding Panama is to brand it  “affordable luxury” whether it is a store, a resort, a restaurant or a hotel.  Programs that are  in place envision Panama as a hub of the Americas  and this means being the “center of world-class value-added logistics services and high value luxury tourism.   The Government’s Strategic Plan 2010-2014, states that Panama should become a center for luxury tourism beach resorts, business and shopping, to focus on attracting high-spending clientele.   For this to become a reality, Panama must present itself as truly a safe haven both for investors and for people who wish to move to this beautiful country and take up residence.       

What to look for in Panama Luxury Estates that offer good value

   

Here are just two of my favorites, one close to the City and the other in a more remote little town that is starting to make me think that it could be the next Riviera of Panama.  

  

  

 First, there is Buenaventura, Panama´s most exclusive beach community which is located on the Pacific coast just 80 minutes from the city. A Nicklaus Design championship golf course along with a the luxurious Bristol Hotel and Spa  makes Buenaventura the ultimate destination. A place where discriminating individuals will find great golf, total pampering experience and world class amenities. Luxurious beachfront townhouses, lake front villas, and condominiums, all in a beach community surrounded by beautiful lakes and lush trees are just a few reasons to make this solid investment.  

Another place that I like is Azueros in the more remote area of Panama that has a great foundation for becoming a Riviera of Panama.  

  

The residences of Azueros include masterfully crafted homes on estates of up to 10 acres with the equivalent of their own nature reserves, beachfront villas and studios, terraced residences in tropical garden enclaves, apartments in a village setting.  Homes are integrated into nature and feature the use of local materials from the antique style hand-crafted tiles to the luxuriously finished terra cotta floor tiles.  

Miami’s luxury market is getting stronger

  

I have often compared Panama City as the Miami South as it hold similarities and Miami offers a glimpse into what is happening in other parts of the world.  It is worth paying attention to trends to see what is happening and why.     

As reported in the Daily Business Review, “the economy may continue to struggle, but the appetite for ultra-luxury condos from Coral Gables to Bal Harbour is getting stronger. 

In the last three months, five buyers paid prices ranging from $8.7 million to $15 million for some of South Florida’s most luxurious penthouses. The five condos — with prices totaling $52.7 million — matched the number of condos sold in that price range in all of 2007, according to an Esslinger Wooten Maxwell report. In 2008, four condos in that price range sold for a total of $40 million. 

As pricey as the condos may seem, the sudden demand is likely tied to a drastic reduction in asking prices, several brokers said. Until recently, the gap between what buyers were willing to pay and what sellers wanted for their properties was hard to overcome. 

“High-end buyers are recognizing the values that they are getting,” said EWM president Ron Shuffield, whose company brokered two of the five deals. “Even though these units are very expensive, they are also very large, very luxurious and the views are amazing.” 

  

The keyword repeated again and again is “value” and even in Panama, the market will gain velocity once there is a perceived value in property.  I am often asked what is happening in the market today.  In Panama one must rely on experienced local real estate agents to get a true handle on the market as there is no US type MLS and sales are not necessarily reported on a 100% of price basis so there is only speculation as to where prices are today and where they are headed.  A good report that offers some insight into the luxury market in the US is put out weekly by the The Luxury Home Institute and is interesting as it shows some recent trends.  Again, while it’s not about Panama, it offers a picture of what one of the world’s largest real estate markets is experiencing and trends that may offer some insight as to the sweet spot for home prices in a market where Panama still receives most of its customers.  

How’s the market?  

That’s the question this report answers for the “luxury market” nationwide, and for the luxury markets in more than 30 major metro areas.  

The ILHM Luxury Market Report is a snapshot of the national luxury market.  Like the Case-Shiller Composite Index and other national indices, it is a bundle of data from markets around the country that give a simplified view and try to get at the question of what’s happening in the marketplace.   

Unlike virtually all of the other reports and indices out there the ILHM Luxury Market Report is focused exclusively on THE TOP OF THE MARKET.  We know that markets are local.  We also know that in a given place, at a given time, different price segments perform differently.  Trophy homes at the top of the market might be in high demand and setting new price records, while in the same city starter homes might be stagnant and seeing major downward price pressures (or vice versa).  Most major indices ignore this fact and lump all market segments together to get at some sense of overall market trends.  We don’t.   Read the entire report…….  

   

Will Bulk Sales Stabilize Miami’s Luxury Condo Market?

  

The last article I am posting is one that may offer some insight as to what Panama may see in the future as the overhang of condo units fully come on line.  While not as big as Miami, Panama is a small country and has a small market but when compared to Miami, it has a lot of similarities in the amount of inventory.  What we see happening  in Miami is worth watching as there real estate game plays out.  

The Real Estate Channel reports overview.  (MIAMI, FL) — No market in the United States has more unsold luxury condominium homes than Miami.

Developers are reportedly holding at least 10,000 units for sale. Another 23,000 have been built in and around Downtown Miami or in some stage of completion.

What does all that mean to the market?  Great buys for the individual buyers and maybe the same for the bulk sales purchaser.  Read the entire report……
  

Panama Property Exchange

If you have a property to sell, you will know only too well how hard it is sometimes to find that elusive buyer. What though, if you could find someone in the same situation, who wants to move where you are, and vice versa? What if you own a luxury estate that you don’t use often enough and want to explore new parts of the world.  Or, you have a property and a dream that due to a change in plans is not what you want to do or where you want to do it.  Well, we have set up Panama Property Exchange and we may help you find that match.    We will select a few properties each week that we feel offer good value and are not over leveraged and we hope that you will drop us a line to see if  your property may a fit.  

The slowdown in the property market means that you may have to explore different options to sitting around with a for sale sign.    There are other ways to  move property, we believe that this may offer you a viable option.  There may be someone out there who wants what you have and vice versa so why not give it a try.  

Permanent property exchange – how it works  

Permanent property exchange is really just saying ‘I will buy your property if you buy mine’ All the legalities are basically the same as they would be in a conventional sale, and you should incur no additional costs, and can actually make big savings. You don’t have to find an exact match in value to your own property, and it is possible to trade up or down as long as all concerned are in agreement. You can go it alone  or if you prefer you can involve your agent, if you want additional support. It is 100% legal, but you will of course need the services of a Lawyer, and if you are moving up, will need to arrange a mortgage, as you would on a conventional property transaction.  

Personal Service  

At Panama Property Exchange we like to offer a personal service, and are available to answer your questions, and give advice where we can. We are aware that Permanent Property Swapping is a new concept, and you will no doubt have questions. We have made it as easy as possible to contact us if you so wish, and offer several ways.  

Please visit our new site that is still in formation and see what we have to offer.  Click on the banner to see.