Condo fire sales coming soon
An auction could prove to be a viable solution, as investors are able to recuperate part of the moneyput into a property that they canno...
An auction could prove to be a viable solution, as investors are able to recuperate part of the moneyput into a property that they cannot move.
A U.S. auction company, J.P. King Auction Company Inc. after a successful time in the depressed Marican market, spotted the niche in Panama and is planning to hold a sell-off of luxury condominiums, apartments and premier houses at the end of April.
The location, appropriately is at the prestigious Union Club, but the final date has not yet been set
Currently the representative of the auction house, Gary Gilbert is compiling a portfolio of properties for the upcoming auction and he hopes to have at least 50 units to be offered to buyers from all over the world, especially Russia, European countries, Colombia, Venezuela and the United States.
Gilbert said that the timing is right for an auction because the real estate market has decelerating and a properties sell-off might be a way to revive it.
“I don’t think that the traditional method of selling properties will be successful in the future. Foreign buyers have been affected by the global economic crisis and are reluctant to pay the full asking price for a particular condominium. However in an auction they will have the opportunity to bid for a home at a reasonable price,” said Gilbert.
According to the auctioneer, property developers will have the opportunity to control the selling process in a buyers’ market
The auction will create a sense of urgency that will force, international buyers, to come to Panama to participate.
Gilbert added that it would be advantageous for property developers who could sell several units in one event, rather than having to go through a pre-sales process that does not always lead to an actual sale.
Only properties that are finished by March 2009 can enter the auction and J.P. King will advertise the event all over the world through magazines, newspapers and the Internet. Buyers would be able to inspect the properties two weeks in advance.
The auctioneer refused to reveal who are the current clients, because the deal with them hasº not been signed yet, but he hinted that there has been interest from property developers with units in San Francisco, Avenida Balboa, Punta del Este and Punta Pacífica.
He concluded by saying that if this auction is successful another one will take place in October.