Panama Real Estate Bubble Bursting Update

Panama Real Estate Bubble Bursting Update



Panama Real Estate Bubble Bursting Update 07/05/07
Today La Prensa Newspaper reported that a​ project named Park 32 in​ Coste del Este has announced it​ is​ failing to​ complete .​
Reportedly the​ project was sold out which leads us to​ believe the​ builder engaged in​ pre-sale marketing to​ flipper speculators who bought in​ early on at​ a​ low price .​
This of​ course removes the​ incentive for​ the​ developer to​ push forward to​ completion since he could start another project on the​ same site at​ much higher prices .​
This is​ similar to​ what happened with Ice Tower becoming the​ smaller Iron Tower .​
We can not state that this is​ what the​ case is​ with Park 32 at​ this time.
Park 32 was supposed to​ be a​ very striking high rise of​ about 50 floors .​
The apartments were large as​ far as​ modern condos go with many being presented at​ 230 sq .​
meters .​
Coste del Este is​ built on a​ landfill of​ some sort between Panama City and​ Tocumen Airport .​
It is​ about five minutes from the​ city with no traffic .​
There are numerous other high-rise condos under construction or​ planned in​ Coste del Este.
Refunds - Our law firm is​ wondering how the​ refund process will take place .​
If the​ original owner sold the​ unit to​ another at​ a​ higher price taking a​ chunk of​ cash down and​ this fellow in​ turn sold it​ to​ another speculator again pocketing some cash how will the​ refunds play out in​ terms of​ the​ down payments the​ buyer payed to​ the​ previous buyers .​
The developer is​ only responsible to​ refund the​ amount he received, no more .​
Now if​ the​ buyer is​ in​ country one and​ the​ seller is​ in​ country two will he execute a​ refund or​ simply keep the​ money seeing the​ impracticality and​ expense of​ being sued in​ his own country for​ a​ Panama contract on real estate especially if​ he has no assets or​ identifiable assets in​ Panama? Our law firm is​ waiting for​ the​ phone calls to​ start coming in​ from people who did not get their money back from the​ previous buyers .​
We have no reason to​ believe the​ developers will not refund the​ money they have taken in .​
They of​ course will want to​ construct another project on the​ site or​ sell the​ site and​ will not want the​ legal complications and​ loss of​ reputation so refunds are expected from them.
Updates - Check back often to​ our website as​ we will be updating with real estate developments as​ they occur.




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