The global recession has without doubt hit everyone,  Panama is not an exception however  the full impact of the recession has not been felt hard in Panama as of yet. During the Christmas shopping season, malls in Panama City are swarmed with thousands and thousands of people shopping; the economy felt vibrant, good times are still rolling.  A layer below what seems like a booming economy still in full force up swing of the good times  a breeze of  the coming storm can be felt as businesses begin to prepare for what could be one of the toughest years in the last decade.  The highs and booming growths in  the last 6 years have been steep and steady so now the pendulum will swing downward with this upward impulse -

The Panama real estate market is preparing for the shock of first wave of hundreds of new City condominiums units that will be coming into the market. Occupancy permits to be issued and the buyers mostly, speculators that purchased two years ago with as little as 10% down are now responsible for meeting the full impact of the remainder of their debt  on these units. The economic outlook for most of these buyers has changed; they face a different economic reality than they expected 2 years ago. Now, they do not have many options and the clock is running, their options are either to re-sell those units quickly at cost with little or no capital gains, or losing the units back to the developer for defaulting on the promise to purchase agreement.

These “distressed Sellers” - and this scenario are likely to be abundant in 2009.  This scenario will affect the economies of supply and demand mostly the City condo market will shift from what has been up to now a seller’s market with prices rising steadily in period of months to by up to 100% without rhyme or reason to a BUYERS MARKET.  This will create a price adjustment that will bring another wave of buyers seeking deals in Panama City.  This price adjustment will also allow for younger local buyers to be able to afford the price of City condos that up to now had been out of their reach and exclusively for foreign investors. This possible surplus in condo units can create a shift to lowering pricing strategies and many developers may have to re-consider their pricing strategies to compete, this may bring about the cancelling of several residential developments in the city.

This negative spin offset by several phenomenons.

• New buyers coming into the market deriving from political instability in countries like Venezuela and Ecuador, seeking shelter and a plan B in Panama.
• Companies coming into Panama to set up their global operations.
• A new wave of new-found investors coming into Panama seeking to invest in this warm tropical paradise.

Panama stands out as one of the most globalized countries in Latin America and a leader in attracting foreign investment and several key projects guaranteed to be moving forward in 2009. The Panama Canal expansion, the Howard- London Regional residential and commercial development zone, and the cinta costera road expansion, along with sustained growth in tourism, business travel, telecommunications, and other key sectors and commercial activities will serve to absorb some of the economic impact, allowing Panama to deliver a solid 3% to 4% economic growth in 2009.

I am confident that in 2009 Panama blessed with its prime location, two oceans (Pacific and Atlantic oceans), beautiful nature and landscapes, and the globalized city ideal for international business will compensate the slowdown of a few sectors, construction, real estate, transportation, and offset with small-sustained growth in others to deliver balanced growth in 2009.  Panama is still a very HOT place to invest in 2009- Now more than ever with prices going down the market conditions are favorable for finding Excellent DEALS & Great BUYS in oceanfront real estate property.  Check out PANAMA properties listings at ThinkPanama.com, search properties by lifestyle:  city condo, beaches, land, or contact me at  dchoy@ThinkPanama.com

In response to Howard from Nevada City, California, who wrote to me earlier this week.

Has the crisis in the US spread to the Panama real estate market?  Who would buy at any price if there were panic selling going?

The US crisis has hit economies worldwide, Panama is no exception, and the Panama real estate market has slowed down but by no means is “crashing“.   Panama has advantages that have allowed for cushion to offset the downward spin of U.S. investors, like location, the expansion of the Panama Canal which is underway and has guaranteed financing till completion, huge foreign investments like London Regional’s real estate development in Howard, the Free trade zone in Colon,  a financial sector that despite global recession has demonstrated stable performance this year,  and Tourism which is still showing double digit gains for 2008.  Panama’s economy reports stable growth of 9% YTD in 2008.

Has the Panama Real Estate market shown any sign of slow down?

Yes, most definitely! However, Panama has a very strong influx of Investors from Spain, Russia, Ecuador, Venezuela, Colombia, Canada, and other countries that are off setting the U.S. investor market. There are many investors in the U.S. that have access to capital and are still finding Panama as an attractive option offshore.
Obviously, buyers are more cautious than ever, the baby boomers looking for retirement vacation homes are missing in action. We are seeing some of the U.S. investors that were speculating buying properties like eggs, by the dozens two years ago are now facing a harsh reality - “that their situation has changed” and  they cannot afford to pay the banks and the occupation permits are coming DUE which means its time to PAY UP.

This however represents a New phase of opportunity in Panama-

Some of these speculators are now letting these units go as “RESALES” at the pre-sale prices they negotiated almost 3 years ago, which in some cases I am seeing is even $100,000- $200,000 below the current developers December 2008 listed retail price.  I am also seeing that these units are becoming available on Prime Oceanfront and Ocean-view condo units in luxury buildings that are very desirable properties and mostly SOLD OUT.

This is by no means is to be understood as the Panama real estate market crashing,  but more like a second wind of Opportunity for savvy real estate investors that are in the right place, at the right time, and lucky enough to have access to these deals today.  They are not easy to find, If you do have access to these LIQUIDATION deals, they represent excellent investment options because their value or worth (Appraisal Value) is higher than price that you would be buying them at now, and their Oceanfront location is perfect for condo rentals income generating investment.

For a list of RESALES units , contact: ThinkPanama.com  dchoy@thinkPanama.com  or U.S. :(407) 641-5747,  In Panama City + 507- 260-4000,  global cel + 507-6676-8904.

FLIPPERS FLOP- a year ago speculators were buying condo units like eggs, by the dozen.
Today reality is hitting home, and confident investors turned motivated sellers are coming
from taking a beaten in U.S. Real estate slump and are eager to unload their units that they
purchased at discounted pre-sale pricing for the same break-even price.

“This represents Good Opportunity for buyers that are in the right place at the right time,
which is now” states Paul Wylie, director of sales for ThinkPanama.com,
“we are seeing motivated sellers listing their new , soon to be delivered oceanfront units
for 30%- 40% below current developers Listed market price, this is a true Liquidation Bargains”.

Market experts like Douglas Choy founder of ThinkPanama.com predicted this would happen sooner
or later, “I see this as positive“ he says, “it will help to correct the overpricing trend
established by greedy developers, and it makes Panama City truly a Buyers market“.

To read more on this analysis go to our newsfeed.

To catch all the new NEWS in Panama go and view our new ThinkPanama Newsfeed.

NEW Oceanfront Residential Developments sign with ThinkPanama.com for global promotions and sales of their properties.

It has been a busy week at the offices here at ThinkPanama with our signing of two very important broker agreements.

Desarollo Bahia is one of Panama’s Premier developers and recently signed ThinkPanama.com as one of their exclusive brokers of Bahia Pacifica – a Luxury Oceanfront tower located on prime property in Panama City at the exclusive oceanfront point of Punta Pacifica facing the Pacific entrance of the Panama Canal with spectacular views of the Pacific Ocean and islands.

BAHIA PACIFICA was recently featured in the November & December issues of one of the most exclusive magazines in the World; DuPont Registry, on both the buyers gallery of fine Automobiles and the gallery of Fine Boat issues– the recent Fine boats gallery issue was hand delivered to an exclusive & select readership attending the recent Ft.Lauderdale boat show a few weeks ago. It is an un-official fact, that several “A” list Hollywood celebrities have purchased homes in Bahia Pacifica.

The second development PORTONES DEL MAR a very exclusive 144 acre, 200 slip Marina & Beach residential community located just 50 minutes from Panama City on the Pacific coast. This residential property was launched a few weeks ago and is being represented Internationally exclusively a Miami based residential development group that holds a close commercial alliance with ThinkPanama.com, as their registered master broker office in Panama, and they will work together on promotions and sales of Portones del Mar. This is the first deep water Marina on the Pacific beaches coast of Panama. Marina is positioned as the “gateway” to magnificent offshore fishing for marlin, sailfish, Wahoo, Dorado and a host of big game saltwater fishing.

To view the Press Release have a look at the release at our Press Room