BA real estate boom or bust

build18

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Given the current bust in real estate through-out most of the world, what is the current trend in rental and sale prices in BA ?
 

steveinbsas

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Enter "real estate boom" and "real estate selling" and/or "real estate boom" (separately) in the search box.
 

perry

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My experiences are completely different to what I am reading here and do not believe that prices will drop at all even though I understand that for many this is favourable.

I have noticed in the last few months many properties that have been unsold are now sold and enquiries have increased 100 percent since Winter 2009.

I for the life of me cannot see how they can drop in a good location of Capital Federal ie Recoleta, Barrio Norte, Palermo , Belgrano, Caballito as their is not enough long term supply to meet the pent up demand.

I for one need more properties to sell to fullfill the demand and can say that it is very hard to find good phs ( townhouses) available for sale in Palermo where there is a backlog of interested clients.

Prices cannot go down due to the fundamentals of supply and demand and with the booby trap of the weaker american dollar they are bound to go up in dollars .

Buenos Aires has had a rough year due to the swine flu and less international tourists but I for one believe that rental returns and tourism will increase in the coming year especially from Brazilian tourists who make up 50 percent of international tourism and will be making their presence stronger in the years to come. If you look at the Brazilian Real it has strengthened 30 percent in the last six months meaning that Buenos Aires for them is much cheaper and this trend is set to continue.
 

iStar

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pericles said:
My experiences are completely different to what I am reading here and do not believe that prices will drop at all even though I understand that for many this is favourable.
Seriously, I have to roll my eyes every time I read one of your posts.
Of course you are going to paint a rosy picture of the real-estate market you are in the real-estate business.

Brazilians maybe visiting BA but they are NOT buying or renting properties. They are here to buy cheap goods on quick weekend getaways.
 

perry

Registered
Istar and being in the business gives me more information and I am not in the business of speading bullshit or painting a rosy picture as you are implying .

All I do know is that the month of October 2009 was the best month I ever had and my enquiries are stronger than ever. I have all the statistics if anyone cares to ask and we run a public offiice in Las Canitas .

IStar Brazilians are here to rent properties and make up a substantial sector of this market and this is my point as outlined by my post .
 

davonz

Registered
I went to a friends place last weekend, and a friend of hers was there, she is a realestate agent and also rents properties. She says that prices have dropped, back to what they were 3 years ago, and that in good locations in the city maybe by only 10%. But the number of sales is well down.
Renting tourist property is very hard at the moment she says, but is hoping that it will change closer to end of the year.
She thinks locals are waiting to see what happens with elections or new gov or something, as they think maybe things will get worse here.
All i know is that the studio i am renting in palermo was going for US$550 last year, and this year i am getting for US$400 per month.. and that when i was looking there was alot more listing on craigslist and that i get alot of replies to the add i placed, and they were prepared to negotiate the price.. so that tells me alot !
 

smirkypants

Registered
It's the job of real estate agents to be optimistic about the market. A couple of years ago I was aggressively told by said agent that prices would continue to rise. They haven't. Prices have stagnated. Consider the source.
 

iStar

Registered
The number of homes sold in the City of Buenos Aires in July plummeted 38.73% from the same month a year ago, the public notaries association, or “Colegio de Escribanos,” said Monday.

Exactly 4,199 homes were (formally) sold in July, compared with 6,853 a year ago. The total value of of the homes sold was almost 1.2 billion pesos (US $311 million), down from 1.5 billion pesos a year ago.

That puts the value of the average home sold in July at 285,409 pesos (US $74,132). That’s pretty close to the average price of US $72,402 in 2000, when the peso was pegged 1-to-1 to the U.S. dollar.

In other words, average property values have changed little in dollar terms over the past decade. But in peso terms, they’ve shot up 294%.

In order for residents of the city to have been able to keep up with the dramatic peso-based rise in prices, their salaries would had to have risen at a higher rate than inflation every year since 2002, when Argentina devalued its currency and let the peso “float” against the dollar.

But that hasn’t happened. Salaries have risen by a much smaller percentage, meaning that when it comes to buying property, most Porteños are notably worse off now than they were a decade ago.

http://www.argentinepost.com/2009/09/ba-housing-market-tanked-in-july.html
 

perry

Registered
Real estate markets change rapidly and for the months of June to September 2009 there was a downturn. In October there was a significant turnaround in both sales and rentals .

Now to answer the question about prices going down there has been adjustments and in the Northern suburbs prices have dropped 30 percent especially around Olivos, Martinez and San Isidro. This is due to a fear of crime and a movement away from unsecured houses.

Quote Istar That puts the value of the average home sold in July at 285,409 pesos (US $74,132). That’s pretty close to the average price of US $72,402 in 2000, when the peso was pegged 1-to-1 to the U.S. dollar.
Istar there are no homes that I know of that have sold for this price . Can you tell me where in the Capital Federal an average home is US $ 72 402? Please answer my question as you seem to be quoting false statistics.

In regards to me working for Remax Argentina what has this got to do with the price of fish in China? For your information 95 percent of my clientele are not expats but local Argentinians who can affford to buy property and do.



In the Capital Federal there has been very little difference in the prices sold now than last year and if you look at a graph of enquiries you can see that in well located areas properties will hold and increase their value in the coming year.

Tell me Istar how can they go down if demand and sales are still high . And also where do people put their American Dollars ? They just wait to their value is diminished? A little bit of common sense is needed here.
 
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