The Compass for your Purchase While Avoiding Paying Above Market in Panama Real Estate
Did you know that many expats purchase properties in Panama and pay over the market price?
The thing about Panama is that the MLS system (very robust in the USA) is still developing.
This makes it difficult to have a clear picture of trends and adequate market prices.
What makes matters even worse is the abundance of information on real estate websites, duplicate listings, and brokers without a license “servicing” international clients looking for a fast commission.
Our own real estate advisor Franklin Ferguson, who is an associate at a major real estate firm in Panama, has kindly provided us with a report of properties sold from May to August 2021.
This report serves as a guide for their brokers to advise on listing prices and advice clients on negotiating when buying.
San Francisco neighborhood is still the most popular market in Panama City with the majority of sales and rentals.
The average sales price of apartments is $ 1,500 x m2.
With $ 143,000.00 for properties on the lower end and $ 345,000.00 on the higher end.
Punta Pacífica as always is strong in the renting market.
For those looking to buy, the average sales price was $ 1,800.00 x m2.
The properties were sold in the ranges of $ 245,000.00 on the low end and $ 690,000.00 on the high end with a couple of 1M dollar properties also being sold.
Bella Vista, a destination for expats looking to live in Panama City is at an affordable $ 1,300.00 x m2.
With prices ranging from $ 175,000.. and $ 365,000.00
Costa del Este
In the high-end neighborhood of Costa del Este these were the prices:
For Apartments $ 1,850.00 x m2 with prices ranging from $ 350,000.00 and $ 895,000.00 and a couple of 1M apartments being sold.
For Houses Sales Prices in $ 1,400.00 x m2 and $ 9.00 x m2 for renting.
What does this mean?
It means, that Panama is still in a strong buyers market, where educated buyers are succeeding in negotiating good prices.
Also, smart sellers are the ones closing their sales and taking advantage of tax returns on capital gains, a hot topic we have discussed in another post.
The first step to successfully buy in Panama is knowing the market and prices.
The second is to get a knowledgeable and experienced broker, for the buyer is free, his fees are covered by the seller.
Hopefully, this extract from the report is helpful for you.
To your success,