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The second in the last two weeks. This one somewhat bullish on the Gold Coast.http://www.nytimes.com/2009/04/17/greathomesanddestinations/17Costa.html?pagewanted=1&_r=1&ref=escapes
re: “sorry I missed the bullish part.” Well here’s a hint. The author making a reference to a representative of the group financing the Hyatt Regency organization’s $300 million Azulera project in Brasilito — suggesting that the project may resume in June was an interesting nugget of information.
Bill, fair comment (although I thought it was the developer that said work would resume in June)…however, that’s yet to be seen…and its the developer…I’ve heard many things from many developers. Nevertheless, I hope it does happen.
The other part is all the stalled or cancelled projects. Haven’t checked recently but the last contact I had was when i was approached to buy the Rosewood parcel. That deal to the best of my knowledge has been cancelled. Feel free to correct me if I am wrong.
Furthermore, I think this supports my theory…SALES PRICES are falling in Guanacaste and I expect them to continue that way. Liste prices may be the same as they were last year but the transacted price is substantially less. 20 to 30% less so they say.
Highend overpriced products are always the first to suffer. And given how “hot” the market was I’m sure there was a lot of fantasy involved in the pricing. Prices will adjust… for two reasons…. the REAL value that people attach to their investments…. and their ability to afford them.
Stop down at a Benz or BMW dealer… sales are slow… not because the product is grossly overpriced… but because folks are adjusting their values… and seeing that they can’t afford the best in these troubled times.
There’s a BIG difference between folks buying… looking to flip and make a killing on a short time horizon… and those that see the beauty and value of RE in CR as an investment that they can enjoy.
Most of the folks here most likely fit the second… since the site is WeLoveCostaRica…. not WeWanttomakefastmoneyinCostaRica….LOL
Imxploring, I agree with what you said for the most part. And don’t get me wrong…I am not just simply looking to make money in CR (although it is an incentive), I also enjoy the country and all it has to offer.
Nevertheless, where I think I am less bullish is in the recovery of sales of assets like a Benz or a Beemer. I think that there will be a MAJOR shift in America in values that could last 10 to 15 years (perhaps beyond) to more realistic, economical types of products. Of course there will always be wealthy but I think we’ll find the less guys making $50,000 a year and driving a high end car or purchasing a vacation condo.
The last thing I want to address is that just because people with cash have it doesn’t always mean they’ll spend it. My thoughts are that the savings rate will push up for at least the next 8 years, consequently demand for discretionary goods (across the board) will slump. If an individual with cash even has a remote idea that they may take a loss on a purchase of a vacation home, why would they not just rent their way to market stabilization? You can enjoy all the wonderful things that CR has to offer while not exposing yourself to any downside risk.
Just two different perspectives I guess…
The Rosewoood and Ritz were cancelled. I would like to see the Hyatt happen–but I will believe it when I see it. I drive by the project daily and have seen nothing done since last year. Canyon Ranch is also on hold last I heard. JW Marriott is up and running and RIU is set to open in a few months.
Edited on Apr 21, 2009 12:22
The last time I was in the area, I saw a bunch of nothing happening at the Hyatt site…but that was some time ago.
I toured the JW in October on site and from the air and it was very nice from both perspectives. Not a big fan of the Pinilla property but it does have momentum.
Rosewood property was offered for sale at over $31MM. Were there any takers?
Canyon Ranch never really started did they? I never saw any action there whatsoever.
Bella Colina started but in October 2008 it looked essentially the same as it did in October 2007. Multi family lots were cleared, one home had been started…nothing more. Any idea where its at today?
Riu project is a monstrosity…not all that appealing to me but obviously is to some. From the helicopter it looked like an environmental disaster…but it was October and there was a TON of rain at that time.
What has happened to the Ritz land? Is it for sale?
I like the Hacienda Pinilla Property, but the road from Villareal to 27 de Abril needs to be paved. That will make a big difference for that property, because it’s only 5km from Villareal, but it seems much longer. The JW Marriott was really impressive. They did a great job. Rosewood was in negotiations with a large European Resort company and supposedly the land has been sold, that’s the last I heard, though nothing has been confirmed yet. As far as the Ritz land, it was up for sale/partnership last I heard.
Bella Colina (near Canyon Ranch) has had no activity for a while. I was told by the sales manager that they are supposed to break ground in 60 days. Canyon Ranch is on hold, but I have reason to believe it will go forth next year. They had 3rd party financing that fell through. RIU is a huge project. It basically takes up the entire Matapalo beach, and there is nothing else down by that beach. The first phase of 701 rooms will be open in October/November. Eventually it will have around 1500 rooms.I’ve been visiting CR for 20 years now for various lengths of time per stay and have stayed on both coasts. I’ve seen rapid developement of the Pacific coast and minimal developement on the Carribean side. Does anyone have any insight as to why the disparity and does anyone think the Carribean coast will catch up. Maybe the resistance against the marina in Puerto Viejo is a sign that The Carribean side will not catch up.
Edited on May 14, 2009 13:31
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