North Coast Overbuilding?

I am only going by second hand information but I was told in November by a couple respected people in the real estate business that anything beachfront was still selling very well; perhaps not as quickly as earlier in the year but no major drop-off in pricing or sales. That supposedly included condos as well as lots. Non beachfront was also selling well depending upon the location but there was obviously less demand. I wouldn't compare south Florida to D.R. for many reasons including but not limited to the fact that one high rise in Miami could have more units than 5-10 Cabarete/Sosua projects combined, there is such a major diverse buying group in D.R. with vast European influence and of course prices, despite increasing, look very cheap compared to Miami or most anywhere in the US.

Prices? POP? Where is the $ coming from?

I've lived in POP for 10 years; I bought a house, waiting 3 1/2 years to get good title. No regrets whatsoever.

* In the upscale areas of POP [exs. Cofresi, Torre Alta, Bayardo] sellers are asking US $300K - 500K - 750K - 1,000,000 +. Nice houses, but, . . . .

* I notice that a buildng boom [ie 10 -15 new houses] is occuring in Costambar. Costambar?

* Many houses [perhaps most?] for sale are unsold for 2 - 4 - 6 years. My opinion? It's a buyers' market, for buyers with patience & cash. There are 2 - 3 large shopping centers in POP - 95% vacant or deserted! Where is the $ going to come from? Are there this many Americans & Canadians fleeing Florida - for 1 reason or the other?

* Sosua? Cabarete? I have no knowledge. New houses & apt. buildings continue to be built on the North Coast. On spec.! There are obviously a lot of Expats & DRs here who are a lot smarter than I am. Or, . . . . Where is the $ coming from? /S/ an American from Missouri!

DR vs FL

It's really difficult to compare the real estate market here in the DR with that in the US.

The US market depends largely on the prime interest rate. If the prime is low then interest rates are low and if interest rates are low it gives home owners incentive to either sell and upgrade or refinance existing mortgages. The key word is mortgages.

Here in the DR the vast majority of homeowners do not have a mortgage. If there is a mortgage generally it's in the form of a carryback by the previous owner and generally is never over a 5 year term.

Because most of the homes/condos in the DR are owned outright there is very little incentive for the homeowners to 'move' their property quickly. Also, because there are no mortgages there are no appraisals. This means that property is valued at what the seller feels is a reasonable figure.

This is why you see houses on the market for years.

The DR is still incredibly cheap compared to all of the other Caribbean islands and because of this value I think you'll see a steady increase in property values and investment. Of course this is just my humble opinion for what it's worth.

Jack

An interesting comparison would be the North Coast vs. other areas of the country, i.e. Samana, Juan Dolio, Punta Cana/Bavaro, etc. While Cabarete is the North Coast town probably in the most danger of being overbuilt, it pales in comparison to Punta Cana. In the Cortecito area alone, which is in "the middle" of the PC/Bavaro area, there are entire neighborhoods being built, street by street, where old buildings are demolished for new condos..and theyre all small developments...it is unbelievable. This small area isn't on the beach, there's no real "town" or infrastructure, and yet they are building hundreds of condos...presumably for the North American market...

On the high-end side of the market, There are several high-profile, high-end gated beachfront communities that make even Sea Horse Ranch look "low-rent". Cap Cana, Punta Perla, and Roko Ki, are sprawling ultra-luxe mini-cities, with prices soaring (and in some cases (Roko Ki) averaging), into the millions for a single home...or condo. Between these three projects alone, there will be 1000's of new homes and condos, and several thousand new "5 star+" hotel rooms on the East Coast.

Someone's betting that this new "retirement" incentive package for Americans (similar to Panama, I guess) the government is supposedly working on, will really incentivize Americans to buy here.

What new retirement incentive package is the government working on? I am a new retiree here and so far there is little incentive. I looked hard at Panama and their package which is very attractive but its just too warm a climate for me. It would be wonderful if the DR copied Panama to attract retirees here!!!! Very interested in this topic and appreciate any other information you have. This whole idea would be good for the DR in general. Their are tons of American baby boomers looking to get out of the US, most do not even know where the DR is located.

thers also a new condo development in cofresi,,its the old CLUB PARADISE HOTEL that has been demolished for the new next to chris and madys restaurant

the new 24 unit condo project located in cofresi is CLUB PARADISE CONDOS,,,