Are Property Values Dropping on North Coast ?

chico bill

Dogs Better than People
May 6, 2016
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Several properties in Sea Horse Ranch have been lowered recently as owners seem to be anxious to sell. I have a good friend from Germany who has been trying to sell his house for 5 years with no luck and he seems desperate to leave. We all know almost every property in La Mulata (1,2 & 3) is for sale. I don't know if it is only high end villas, but it does seem the bloom is off the rose for property values?
 

Cdn_Gringo

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Apr 29, 2014
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My experience is that property values may not actually be falling anymore but they did. Since 2014, those I know who are selling are eventually successful but at a much reduced price. The average time to sell for a non highly motivated vendor seems to be around 2 years. First case. Original asking price $450K, sold for $279K. Second case, asking $275K sold for $225K. Both sellers turned down at least one offer prior to negotiating a sale. Both of these properties were single family villas in decent neighborhoods. Property across the street from me was purchased from the original land seller (I don't know the price) at a substantial discount as the seller wanted to leave in a hurry.

Lots of properties for sale online and in La Playa for less than $200K but I don't track how long it takes for any particular property to sell. It is clearly a function of having the right person become interested in the property and then the seller being willing to take whatever they can get at the time. This pretty much sums up real estate anywhere. There are no bidding wars on the north coast these days. I haven't heard of anyone who has been offered exactly what they were asking and offers are few and mostly far between. My knowledge is limited to areas in and around Sosua. It is definitely a buyers market presently.
 
Aug 21, 2007
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I think it depends on the type of property, the location, the maintenance expenses incurred by the property, and the age of the home. Where I live, things have been selling lately. I presently have 2 apartments for sale, although I have not listed them with an agent, nor intend to do so. One is a higher end unit, the other, a low-end unit. I am not desperate and know my price point. And I have confidence that one or the other will sell within the next 6 months.

Six years ago, in the midst of the economy crisis, I sold my villa which I had owned for 5 years. The ultimate selling price included the price I paid for the property and all improvements.

Put good, positive energy in your house, take good care of it, fill it with love, and it will sell!

Lindsey
 

Ecoman1949

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My experience is that property values may not actually be falling anymore but they did. Since 2014, those I know who are selling are eventually successful but at a much reduced price. The average time to sell for a non highly motivated vendor seems to be around 2 years. First case. Original asking price $450K, sold for $279K. Second case, asking $275K sold for $225K. Both sellers turned down at least one offer prior to negotiating a sale. Both of these properties were single family villas in decent neighborhoods. Property across the street from me was purchased from the original land seller (I don't know the price) at a substantial discount as the seller wanted to leave in a hurry.

Lots of properties for sale online and in La Playa for less than $200K but I don't track how long it takes for any particular property to sell. It is clearly a function of having the right person become interested in the property and then the seller being willing to take whatever they can get at the time. This pretty much sums up real estate anywhere. There are no bidding wars on the north coast these days. I haven't heard of anyone who has been offered exactly what they were asking and offers are few and mostly far between. My knowledge is limited to areas in and around Sosua. It is definitely a buyers market presently.

Been checking out all types of real estate during my seven winters staying in the DR. Prices have been declining steadily, for many reasons. La Mulata is obvious. It's bad reputation has gotten worse and it's difficult to sell anything there. Price drops average $25 to $40 thousand in that area. Other areas like Perla Marina are also experiencing a price reduction but not as bad. Costambar prices are dropping, especially condos. The campo is the worst. Two friends tried to sell their houses and dropped the price by half. Still haven't sold them and haven't had even one person look at their properties. The reason for these price drops are many. The drop in the market worldwide since 2008, too many houses for sale, expats having to leave quickly for financial or medical reasons, etc. A drop in the Canadian dollar also affected sales in the DR. There are good deals to be had if you play the waiting game. More expats are choosing to rent instead of buying because of the political and economical instability in the DR and the significant rise in the cost of living here. Others areas like Costa Rica, Columbia, Belize, have become more attractive with cheaper housing, better access to cheap medical, etc.

The rise in crime and lack of enforcement, I suspect is causing some people to reconsider buying in the DR and others to get out as quickly as possible, even if it means taking a loss on their property.
 
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DonDR

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Jul 14, 2010
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Now the prices are really low - its the low season and practically no clients - but prices will rise a little in November (may be 10-15%) as all the sellers expect the waive of potential buyers in high season.
And this year I never heard of so many sale offers of villas in Sea Hourse Ranch. Last winter showed more then 20 of them for sale. One of the deals that have been concluded was with a discount of 41% from the announced price.

During the last 5 years the prices on real estate on the North Coast droped 50% in average (and rough estimate). Some sales went even with 60-65% drop (real deals). A lot of people want to leave NC either home or to Punta Cana and Bavaro areas. Its much better if you compare with NC - fly in cheaper, so many flights from different destinations, excellent highways everywhere, hospitals and clinics, shopping malls, a variety of supermarkets, 911, schools, fun parks, golf and beautiful white beaches which normally are clean ...
 

bob saunders

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Jan 1, 2002
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Now the prices are really low - its the low season and practically no clients - but prices will rise a little in November (may be 10-15%) as all the sellers expect the waive of potential buyers in high season.
And this year I never heard of so many sale offers of villas in Sea Hourse Ranch. Last winter showed more then 20 of them for sale. One of the deals that have been concluded was with a discount of 41% from the announced price.

During the last 5 years the prices on real estate on the North Coast droped 50% in average (and rough estimate). Some sales went even with 60-65% drop (real deals). A lot of people want to leave NC either home or to Punta Cana and Bavaro areas. Its much better if you compare with NC - fly in cheaper, so many flights from different destinations, excellent highways everywhere, hospitals and clinics, shopping malls, a variety of supermarkets, 911, schools, fun parks, golf and beautiful white beaches which normally are clean ...

Except the terrain , which is absolutely boring. The north shore definitely needs some updating though.
 

tee

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Property value in theory has not dropped, the problem is that the properties here are generally over priced and what has also happened is that many property owners are still trying to recover from the international monetary crisis several years ago and can no longer maintain a second home in the Caribbean. A lot of these owners have slashed the sales price of their properties thus making it look as though property value has decreased. Because of a lack of an MLS system and a reliable government property assessment department, it is very difficult to to have an real sense of value of the land in this area. Prices on re-sales are based on what the property owner originally paid plus lets say 20% to 30% on top of that. Chances are that the seller paid above what would be fair market value and so the price just continues to go up. Many properties that are selling at slashed prices are probably a lot closer to 'fair market value'.....I have been in the business here for 12 years and am only now seeing some developers (I will not name them) starting to sell newly constructed properties at a lot lower price than what they would have been selling 5 years ago. Many of you may have different opinions, this is just mine, coming from somebody that is in the business.
 

retiree

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Jan 18, 2008
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That house mentioned for sale in Sea Horse Ranch is on a lot of 1000 sq metres. Didn't know they had lots that small there.
 

jd426

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Dec 12, 2009
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I love when people talk about " Property Values"..
there is no such thing as Property Value.
A Property is only worth what the Next person is willing to pay, within a specified period of time.

Next to the Housing Bubble here in the States, The DR is probably a picture perfect example of this exact theory and concept.
You can always BUY a "800K priced Condo"...
ok, now try selling it, 3 days later for anything near the price you just paid for it.

RECENT SALES Stats.. yes those are Real..
but "Values" of those Same pieces of Real estate.?

Good thread though.. interesting stuff.
 

chico bill

Dogs Better than People
May 6, 2016
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Thanks

Property value in theory has not dropped, the problem is that the properties here are generally over priced and what has also happened is that many property owners are still trying to recover from the international monetary crisis several years ago and can no longer maintain a second home in the Caribbean. A lot of these owners have slashed the sales price of their properties thus making it look as though property value has decreased. Because of a lack of an MLS system and a reliable government property assessment department, it is very difficult to to have an real sense of value of the land in this area. Prices on re-sales are based on what the property owner originally paid plus lets say 20% to 30% on top of that. Chances are that the seller paid above what would be fair market value and so the price just continues to go up. Many properties that are selling at slashed prices are probably a lot closer to 'fair market value'.....I have been in the business here for 12 years and am only now seeing some developers (I will not name them) starting to sell newly constructed properties at a lot lower price than what they would have been selling 5 years ago. Many of you may have different opinions, this is just mine, coming from somebody that is in the business.

As someone in the business what do you think cleaning up Sousa would do for property values ?
It has become so sleazy and physically dirty here it reminds me of my time spend of Managua, Nicaragua.
Also the cost of living in DR has become much higher than most US cities and certainly higher than Colombia. I think Costa Rica is about equal.

I just returned from Cali and Medellin Colombia and looked at some beautiful 2 bedroom condos (with gated parking) for $150 - $170K with $85 a month condo fees. For the most part the cities are clean, safe in most areas and restaurants are great. The bars are not full of hookers but meeting women there even for an ugly retiree like me seemed doable.

Property taxes, utilities and food seemed much more reasonable.
Residency is fairly straight forward and about half the cost to have someone process as it cost me here. And driving there seemed civilized and all the cars and motorcycles had lights at night !

I will need to return in two months to complete it but I want to establish a bail-out place in case crime keeps getting worse in the DR.
I love the DR but my place has been robbed twice in two years and I am sure everyone here has their own horror stories about that.
If you don't feel secure in your own house you will look to move.
 

Lobo Tropical

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Aug 21, 2010
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As someone in the business what do you think cleaning up Sousa would do for property values ?
It has become so sleazy and physically dirty here it reminds me of my time spend of Managua, Nicaragua.
Also the cost of living in DR has become much higher than most US cities and certainly higher than Colombia. I think Costa Rica is about equal.

I just returned from Cali and Medellin Colombia and looked at some beautiful 2 bedroom condos (with gated parking) for $150 - $170K with $85 a month condo fees. For the most part the cities are clean, safe in most areas and restaurants are great. The bars are not full of hookers but meeting women there even for an ugly retiree like me seemed doable.

Property taxes, utilities and food seemed much more reasonable.
Residency is fairly straight forward and about half the cost to have someone process as it cost me here. And driving there seemed civilized and all the cars and motorcycles had lights at night !

I will need to return in two months to complete it but I want to establish a bail-out place in case crime keeps getting worse in the DR.
I love the DR but my place has been robbed twice in two years and I am sure everyone here has their own horror stories about that.
If you don't feel secure in your own house you will look to move.

Good points!
Value for your money, infrastructure, safety and maintenance fees.
For any given price, an informed buyer will look around and compare what is offered for a certain price in various locations. Other than family connections requiring the DR location, many good options are available worldwide.
Value can be found in the DR if people want to put up with existing conditions, which will not be improved in the near future.
 

Derfish

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Jan 7, 2016
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Good points!
Value for your money, infrastructure, safety and maintenance fees.
For any given price, an informed buyer will look around and compare what is offered for a certain price in various locations. Other than family connections requiring the DR location, many good options are available worldwide.
Value can be found in the DR if people want to put up with existing conditions, which will not be improved in the near future.

As far as property values go. In Sosua can one still find a building lot for $5000 USD? Or do I have to go to Imbert?
 

Expat13

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Jun 7, 2008
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As someone in the business what do you think cleaning up Sousa would do for property values ?
It has become so sleazy and physically dirty here it reminds me of my time spend of Managua, Nicaragua.
Also the cost of living in DR has become much higher than most US cities and certainly higher than Colombia. I think Costa Rica is about equal.

I just returned from Cali andB. For the most part the cities are clean, safe in most areas and restaurants are great. The bars are not full of hookers but meeting women there even for an ugly retiree like me seemed doable.

Property taxes, utilities and food seemed much more reasonable.
Residency is fairly straight forward and about half the cost to have someone process as it cost me here. And driving there seemed civilized and all the cars and motorcycles had lights at night !

I will need to return in two months to complete it but I want to establish a bail-out place in case crime keeps getting worse in the DR.
I love the DR but my place has been robbed twice in two years and I am sure everyone here has their own horror stories about that.
If you don't feel secure in your own house you will look to move.
Don't compare Medellin to beach towns like Cabarete. Even though I would challenge you could easily find a nice 2bdr for 170k in Cabarete. Santo Domingi sthe fairer comparable to Medellin and for 170k you can easily find a nice 3bdr. with $85 maint and secure parking
 
Jul 28, 2014
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A Property is only worth what the Next person is willing to pay, within a specified period of time.

Good thread though.. interesting stuff.


Yes and No:

Here is my 2 pesos worth, not that anyone gives an ounce of Mierda

A) You are correct when you say: A Property is only worth what the Next person is willing to pay:

Because ultimately, yes, what someone is willing to give (generally) is what you will get, however, that does lead to Part B

B) For example, the 80's "boom", where houses sold quick, prices were escalating at rates unheard of as did mortgage rates, especially for commercial properties, there was serious $$ to be made in that "value"

"Value" is generally tied to socio-economic times, meaning, should we be in a state of Armageddon/WW3 has broken out, I don't care whether you have platinum toilets, I wont give you jack SHI7 for your place as I will need Fire, food and water, so I am more likely to take it from you than purchase (purely a silly example).

So for the North Coast, it seems that it is really an interesting Dichotomy, and I say that from the perspective of, it's great from the view of buying a place in the Caribbean, the "North American pipe dream" where many people want to buy into the dream. However, the situation in Sosua, which is yet to be determined as to its direction can distinctly change that "value", It could be feast or famine as per this - Note B
 
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Derfish

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Jan 7, 2016
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Yes and No:

Here is my 2 pesos worth, not that anyone gives an ounce of Mierda

A) You are correct when you say: A Property is only worth what the Next person is willing to pay:

Because ultimately, yes, what someone is willing to give (generally) is what you will get, however, that does lead to Part B

B) For example, the 80's "boom", where houses sold quick, prices were escalating at rates unheard of as did mortgage rates, especially for commercial properties, there was serious $$ to be made in that "value"

"Value" is generally tied to socio-economic times, meaning, should we be in a state of Armageddon/WW3 has broken out, I don't care whether you have platinum toilets, I wont give you jack SHI7 for your place as I will need Fire, food and water, so I am more likely to take it from you than purchase (purely a silly example).

So for the North Coast, it seems that it is really an interesting Dichotomy, and I say that from the perspective of, it's great from the view of buying a place in the Caribbean, the "North American pipe dream" where many people want to buy into the dream. However, the situation in Sosua, which is yet to be determined as to its direction can distinctly change that "value", It could be feast or famine as per this - Note B

Economics 101 starts out the first week teaching that anything is worth only what two people decide between themselves it is worth. I may be the CEO of a grocery store and decide that I want 500 pesos for a bag of potato chips that sold yesterday for 25 pesos. That doesn't mean it is now worth 500 pesos, and its worth will not be established until I drop the price to the point people start to buy it once more. ABout the time I started college there was a phenomenon that happened. paper back books had been selling for $.25 for quite a while. The price went up to $.29 with huge signs saying "New Price only $.29 and paperback book sales went up by 20% almost immediately. That became their new value. Though the day before they had been wroth a quarter.
But the value of anything is not established until there has been a transaction, not just someone deciding their house is worth a quarter of a million dollars.
Der Fish
 

chico bill

Dogs Better than People
May 6, 2016
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Don't compare Medellin to beach towns like Cabarete. Even though I would challenge you could easily find a nice 2bdr for 170k in Cabarete. Santo Domingi sthe fairer comparable to Medellin and for 170k you can easily find a nice 3bdr. with $85 maint and secure parking

Maybe Medellin compares to Santo Domingo, except the weather and infrastructure is better in Medellin. Traffic is far less congested and a great meal is slightly cheaper. But the Condos I have seen in Sosua most come with $250-$300 per month fees and often not maintained well after the units are all sold.
Anyway I'm looking at Colombia, which unlike the DR, is vastly improving with a semi-honest police force and it's bank for the buck - It is cheaper to live there.
 
Jul 28, 2014
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Economics 101 starts out the first week teaching that anything is worth only what two people decide between themselves it is worth.
But the value of anything is not established until there has been a transaction, not just someone deciding their house is worth a quarter of a million dollars.
Der Fish

Economics 102, Buying a house for its "value" today, is 100% situational. My fren, value goes beyond "I want, and he will pay"

You really think that if a (hypothetical nuclear bomb) hit tomorrow , you would get market value for your place?? You still sticking to your 101??
 

Derfish

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Jan 7, 2016
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Economics 102, Buying a house for its "value" today, is 100% situational. My fren, value goes beyond "I want, and he will pay"

You really think that if a (hypothetical nuclear bomb) hit tomorrow , you would get market value for your place?? You still sticking to your 101??

Yes what ever the post nuke market became. I once was arrested for selling a bag of ice for $2.00 that I had paid $.99 for. This was 3 or 4 days after Hurricane Andrew. I was written up by the police for 'price gouging.' We went before a judge and My lawyer asked the court what a bag of ice had cost the day before the hurricane, if that bag of ice was delivered, the judge dismissed the charges without further ado. If the value of a house is fixed in time and space you would have to pay the same for a house in Nagua as you do in New York City! All kinds of things change prices and values.
Der Fish