I’ve received a few questions recently about a piece of legislation recently passed in Panama known as Resolution 52.
A bit of background– the construction boom and ensuing real estate bubble for Panama City condominiums lasted from 2003 until approximately 2007. Tens of thousands of units were designed and sold off-plan to speculators, usually months before the developers broke ground.
Speculators were buying up pre-construction units so quickly that developers were encouraged to design and sell more condo towers– and to keep raising prices. In the 4-year boom, sales prices for Panama City condos more than tripled from $800 per square meter to over $2,500 per square meter.
The first of these condo towers were completed and delivered prior to the start of the global slowdown, so early speculators were able to ‘flip’ their units to end-user buyers and make a tidy profit. Today is a different story.
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2009-09-30
