Panama City’s luxury real estate market is showing signs of softening, with properties waiting for a buyer for a longer period of time. According to a recent report by Panama Equity, a boutique real-estate firm based in the Panamanian capital, high-end properties now stay on the market for around 240 days. This compares with 180 days a year ago, an indication that “either the market has appreciated too quickly and buyers don’t see value, or that there are less buyers going after the same amount of properties,” said Kent Davis, managing partner at Panama Equity. Prices are being pulled down by the strong U.S. dollar, which has appreciated against emerging-market currencies, and conservative sentiment among buyers. (Real estate transactions in Panama are usually in U.S. dollars, meaning a strong dollar could pose a problem for buyers from elsewhere in Latin America.) Panama City has attracted foreigners over the past years with a combination of economic stability, safety, quality private schools and friendly business environment, says the report, which focuses its research on the capital. The Punta Pacífica area has Panama City’s largest concentration of luxury condos. Buildings such as Bellagio, Venetian, and the Trump Ocean Club generally list for between $2,800 to $4,000 per square meter (between $260 to $370 per square foot). High-end single-family homes usually start at $900,000. Foreigners who buy property in Panama are exempt from paying taxes on income earned outside the country.
Related: As Condo Towers Rise in Panama, So Do Prices Looking forward, Panama Equity predicts pricing on the luxury condo market will remain flat or even contract slightly, despite an expected low supply of new developments. Read the full report here. Write to Andrea López Cruzado at andrea.lopez@dowjones.com