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About the 14 projects…..
Project A must be Concasa’s Condo Project in Alajuela. A part of the 528 apartments was sold out 2 years ago (192 apartments). That leaves 336 apartments in the project Bosque Real. At least 168 were completed in 2008; many are not occupied because banks approved the loan but did not supply the money; problem for developer and buyer. So it leaves 168 to be finished in 2009 (11 available).
11 out of 168 gives another percentage than 15 out of 528.Project B must be the Santa-Ana-Flats in Guachipelin, brand new apartments for sale now from $ 140K and up (not 168K and up). This project was completed 1,5-2 years ago.
Project C must be the Country Club in Santa Ana, a project that started in 2006 and we could read here (https://www.welovecostarica.com/public/1696.cfm) that 65 apartments were already sold by January 2008 (77%). Just a month ago we could read that some apartments were still available (https://www.welovecostarica.com/public/2042.cfm) but maybe are sold now.
Project D must be the El Cortijo in Escazu but that was already on the market in 2007. Still available 77 apartments ? In article (https://www.welovecostarica.com/public/1344.cfm) we can read that “all of the new luxury condo apartments in Escazu are about 99% sold out. Even the new Escazu condos that I would personally consider bloody ugly are sold out.”
Probably the opportunistic salesmen from this project were not very honest to tell how and what.Project K with 17 story building must be the Metropolitan Tower in La Sabana but we find 42 apartments in all kinds of information (and not 56).
So we are talking about more than 800 apartments out of 1,625 with -let’s say it carefully- “questionable information” in the spreadsheet. And that’s 50% from the survey.
The question “How many of these 14 largest San Jose real estate developments projects have lowered their sales prices in the last year?” is not very relevant. Pre-sales and sales of “older projects” started way before most of us were thinking about this financial crisis.
@Scott: there’s no conspiracy against you 😉
Thanks for your feedback.
For your information, project B on our spreadsheet is NOT Santa Ana flats and project K is NOT Metropolitan Tower which I believe is 14 floors of apartments plus retail & offices. The 17 storey building featured is another developer.
When so many people are asking if prices have come down, the fact that none of these 14 real estate developments projects have lowered their sales prices could not be more relevant.
Project C is indeed the Country Club and our VIP Members alone have purchased about 65 of them in preconstruction, there are apartments remaining for sale as is mentioned in the spreadsheet and we’ll also feature a resale on this site later this week..
One might assume that you are in the real estate business ‘sumaSAL’ so perhaps you could introduce yourself and tell us exactly what you do so that we can all learn from your experience instead of lurking behind ‘sumaSAL’?
Scott Oliver – Founder
WeLoveCostaRica.comPS. We have never recommended El Cortijo project.
We are in –what we call- the “real(istic) estate business” and we don’t concentrate on one type of client (we don’t have VIP-members). I will avoid commercial promoting here on your site, Scott, no problem.
Using 14 well selected projects to make a statement is not our style. And having a discussion about a yes or a no is impossible if one is keeping information for himself.
More important for us is the overall situation in this country.
We see a lot of projects not starting because there are no buyers. Maybe that’s more significant for the current situation. Banks don’t provide loans, high interest-rates etc. etc..Maybe some developers didn’t lower their prices, but for our clients is more important to know what will happen with the current prices in the near future. We see a buyers-market, and for buyers it will be much better if they have more patience and can wait at least 6 more months. Prices will go down !
What we will not see in the next 2-3 years is that prices will go up as before. We advice our clients to wait…… or go for the “fire-sales”. Costa Rica is not the “emerging real estate market” anymore where prices double or triple every few years.
And….. maybe prices didn’t go down…… but what about 10% inflation…… and the (weak) position of the dollar worldwide….
We agree that some regions and some categories of houses/condo/apartments suffer less at this moment. We are not negative: we keep on smiling…… You too, Scott ?
Btw: – the spreadsheets says 0 at Avalon Country Club
– El Cortijo’s lowest price is $ 289K and negotiable (!).There are numerous projects here that are not starting because of the overall extremely negative sentiment out there and lack of financing.
The fact that residential real estate in the USA has lost so much value – and Costa Rica real estate – so far – has not, certainly does not make Costa Rica real estate look as attractive as it looked a couple of years ago either….
Unfortunately many experts believe that we’ll also be seeing quite a bloodbath within the commercial real estate market in the USA too…
If you spend much time on my site you’ll know that I am generally extremely pessimistic about the overall long-term prospects for our planet and the survival of this hopelessly defective species called ‘human’ however, I genuinely believe we are extremely fortunate in living here in Costa Rica.
Lastly, please allow me again to make one thing crystal clear: As an investment advisor for 22 years I have made calls to good clients to inform them that their investment had plummeted in value because of some event, that’s not to say we had lots of them, we did not, we managed risk well but you simply can not be involved with investments for that long without experiencing a few disasters…
I mention this because should my various indicators show us that Costa Rica real estate prices are down by XX% and all our Realtors are also confirming this, I will have no qualms or fears whatsoever about writing about this publicly.
Scott Oliver – Founder
WeLoveCostaRica.comPS. I was not asking you to post an advertisement in the forum, I was asking you to introduce yourself and explain what you do so we can all learn from your experience. Please feel free to contact me privately at admin@welovecostarica.com
I just don’t get it Scott. I have been involved with Guanacaste (primarily) real estate for several years (certainly not an expert) and I can say with certainty that many of the brokers I have been dealing with, have confirmed that SALES prices (not ASKING prices) have indeed fallen as a result of a much lower number of total sales and a higher proportion of distressed sales or “firesales”. Five years ago there was no such thing as a “firesale” in CR…today I receive ten to fifteen new firesale listings a month from various Guanacaste brokers.
A web posting by one of the largest brokers in Guanacaste.
MARKET TRENDS- APRIL 2009
The Guanacaste-Beaches Market is experiencing a slow down is sales leading to a buyer’s market with properties spending more time on the market with plenty of time for buyers to find the property of their dreams. As high season turns to low season later this month, we expect sales activity to decline only slightly as serious buyers love this time of year in Guanacaste. Many buyers are waiting to see what happens with the world economy, which may mean that they may make out better with prices trending downward; but they also may miss out on the unpredictable bottom and some of the great deals that we are seeing now. Costa Rica’s economy remains healthy and foreclosures here are mostly non-existent as risky lending practices never took hold here. Costa Rica ended their fiscal year 2008 with a budget surplus!
List prices are dropping slightly, but low offers are being more widely accepted by sellers as they realize that significant and easy appreciation will take longer than expected, unlike the good old days. Also, the predicted boom in development (see development map) and the associated price hikes are further out on the horizon, awaiting healthier credit markets. Sellers are more willing to accept 10-25% off the sales price and are more flexible on terms and financing. Some distressed USA sellers are now entering the market due to financial and lending problems back at home. This is a great time to buy, if Costa Rica is your long term goal, as some of the speculators and undercapitalized investors bail out! Some really large development parcels can be had now for significant discounts.
This would seem to confirm much of what we have been saying about the Guanacaste area no?
Later this week we’ll have an up to date condo comparison report available from Becky Clower, our Recommended Realtor in Guanacaste. Becky has spent weeks tryingt to get the information up to date…
Scott Oliver – Founder
WeLoveCostaRica.comPS. There certainly are foreclosures here – I just received a 22 page list of foreclosures earlier this morning
So Scott…. are you willing to share that list? Feel free to cherry pick the good stuff… but leave the rest of us some crumbs! 😉
Quote “…..report available from Becky Clower, our Recommended Realtor in Guanacaste…..”: She was on the homepage.
Where is this article now ?
It will be published when the report is finalized and I’m ready to publish it which will be later this week….
Scott Oliver – Founder
WeLoveCostaRica.comUmmm. Not sure you have ever really said that. My understanding is that you assert that there may be some “firesales” but as a whole the market is not moving downward while I have repeatedly challenged that thought. Forgive me if I have been arguing in concert.
22 pages of foreclosures? Would any of those be in the utopic central valley? Probably not eh?
Scott, I think for the most part you are playing on a technicality to keep a positive spin on the market. The way I see it is that you repeatedly assert that asking prices have not lowered, particularly with regards to the developers you recommend. However, what you don’t seem to ever address is the correlation between high prices and slower sales.
Unless there is only one foreclosure per page on those 22 pages, it seems as if the foreclosure market is alive and well in CR as well.
You seem hellbent on trying to discredit me grifz77 so good luck with that while you sit there in Canada…
In your line of work, you probably know a lot more about foreclosures than I do and please note that since I was the one that mentioned the fact that I had received a report with 22 pages of foreclosures, obviously there are foreclosures in Costa Rica.
Have I analyzed it? No I have not…
Admittedly I am only one man working 15 hours per day in Costa Rica trying to get the facts out there to our VIP members, while you sit there in Canada but as you well know, I am in touch with lots of real estate developers and dozens of Realtors throughout the country who share information with me and once again…
How many of the 14 largest real estate developments projects in the “utopic” San Jose area have lowered their sales prices in the last year?
Not one!
Unless you have any factual information that contradicts that – which you do not – then please refrain from posting your constant pissy little comments every other day in our Discussion Forum.
Scott Oliver – Founder
WeLoveCostaRica.comScott you seem a little over sensitive. I am not hell bent on discrediting you. I am merely trying to understand your motives and relation to the information you disseminate.
Please elaborate on your comment about my line of work and how I probably know more about foreclosures than you do.
My points are that if things are utopic in the central valley, they certainly are not on the west coast…particularly in Guanacaste. Furthermore, any realtor in that region has a clear motive for putting a positive spin on their market views. My last point is that you, as an investment advisor, must at least acknowledge a realtor’s motive for unsubstantiated optimism and thus should take that potential bais into account when digesting the information you get from them. Don’t forget…after all…these people are salespeople.
I’m sorry if you view my comments as “pissy” they are not intended as such…however, your lashing out seems more like a defense mechanism to me more than anything.
Quote: “Not one!” Not one ? Yes, at least one: El Cortijo’s lowest price is now $ 289K and negotiable (!) (according to spreadsheet $ 299K).
We can’t audit the rest, because discussion is not open and info not available.
Scott may not do the sales but his partner (most recommended realtor for the Central Valley) does all the work. So optimism is very important to seduce buyers…..
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