We’re proud to report that Punta Pacifica Realty had one of the best quarters in the history of the firm to start 2021, as investors take advantage of a rare buying opportunity.
Buyers recognize prices are likely to rise as the Panama market continues to reopen, which has added a sense of urgency to the investor community. We’re also seeing buyers fleeing the sky-high prices in many markets in the U.S. and Canada, looking for better values. After sliding most of 2020, sale and rental prices are starting to pick up, as the supply of quality apartments starts to diminish.
Activity is particularly brisk in the luxury market, with buyers focusing on top developments like the Wanders and Yoo and Ocean Reef islands. PPR made a record six sales of more than $1 million in the first quarter, with buyers looking for penthouses and private pools.
In rentals, we’re seeing a continued trend toward buildings with resort-style amenities, such as the Yoo Panama and the Ocean Club, which offers JW Marriott hotel services to residents. Throughout the recent cycles, these buildings have been able to maintain high rental demand, offering investors some of the most consistent yields in the city.
Here are a few highlights of PPR’s quarter:
- Three penthouses sold, including a top-floor penthouse in Seascape on Ocean Reef Islands, a unit on the 64th floor of the JW Ocean Club, and a lower, 4-bedroom penthouse with private pool and landscaped terrace in Aqualina, a unit which was part of Punta Pacifica Realty’s Trophy Property Program.
- Two private residences on Ocean Reef sold for more than $2 million, including a 6,500 sqft Mallol Villa with private pool and a 6,000 sq ft residence in the exclusive Water Front 5 development, overlooking the new Ocean Reef marina.
- Phase one in Seascape, the landmark health and wellness-focused development on Ocean Reef Islands, was only a few units away from selling out, after the developer extended the sandy beach area, creating an amazing beach in the heart of the city.
- Seven sales were closed in Wanders & Yoo, the designer-focused luxury development under construction in the heart of the city.
- Rental prices remain mostly flat, but rates are starting to trend upward in highly sought after buildings as vacancy dries up.
- We sold a very special property, a one-of-a-kind, 375-square-meter (4,036 square-foot) immaculately remodeled apartment in Miramar Tower, one of Panama’s landmark buildings.
Trends to watch:
As we move further in 2021 and the world continues to reopen, we see several key trends continuing to shape Panama’s real estate market. Many have been building, even during the pandemic.
- Multinational companies are restaffing in Panama, driving an increase in corporate rentals
- Buyers and sellers are increasingly requesting cryptocurrencies in transactions, specifically Bitcoin and Zen from the Horizen Blockchain.
- Investors are clearing out the inventory of under-valued resale inventory in the most sought-after buildings, such as The Ocean Club and Yoo Panama.
- Ocean Reef islands continue to see the highest sales volume in the city, as the first residents move into developments on the second island and a much-anticipated water sports center opens.
- Developers are already less flexible in their negotiations as sales volumes return to healthier levels and international travel picks up.
- U.S. and Canadian buyers are increasingly searching for a “plan B” home to diversify their portfolios abroad in the current political climate.
- Preconstruction developments continue to be a highly sought-after investment choice, with several quality projects entering the final construction phases and the rental property market expected to rebound.
As travel slowly opens up worldwide, many of these trends are likely to accelerate. We are expecting a dramatic shift in the market in the months ahead. Our experienced team of professionals to service our interested clientele from abroad with the latest technology, including 3D walkthroughs of units and online consultations.
Have questions? Contact us now for the latest data and information on the Panama real estate market.
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