BOOMTOWN: PANAMA CITY MARGARET SUMMERFIELD
But fire sales, mostly from U.S. owners, crop up regularly. These owners want or need out. They’re hard to find
(Panama doesn’t have a multiple listing service) and they tend to sell fairly quickly once they’re listed.
The standby of renting instead of selling is also less attractive. The competition in this sector is from other
condo owners and thousands of new hotel rooms in the city. Rentals aren’t generating as much profit as they
did back in 2007/2008.
So, should you buy in Panama right now? I’d say no if you’re looking to flip, get short-term appreciation or
double-digit rental yields. Don’t buy pre-construction; it’s always a risk and a risk that’s not worth taking in a
stagnant market. Don’t buy in a private community or condo tower with a lot of unsold units. You may wait a
long time for the promised amenities, or you might not get them at all; and there may be a lack of funds to cover
routine maintenance and repairs.
But if you’re looking to relocate here or buy a vacation home that you’ll hold long-term, then Panama is still a
great option. Just don’t over-pay. Asking prices are often unrealistic. Treat them as the starting point for
negotiation. Ideally, look for a fire sale. That way you’ll build in a cushion from the get-go.
Pathfinder International