Housing market situation

[Duganist]

Regarding housing, where I live, there are about 100 high rises built in the last 8 years, been living here for about 4. They're almost done. The economic growth needed to fill-out year-round occupancy would be significant, the equivalent of Chile growing a little Boca Raton and Palo Alto. However if we see serious dislocation from Santiago-based activity, I wouldn't be surprised if a lot of finance professionals working in Sanhatten relocate offices out here in the next year, that would prevent softness in the market.

[PXYC]

Following the online Remate Macal today..

Both these apartments in Providencia with a nice sqm but requiring some TLC sold by 7100UF, which converts to more or less 203 million pesos. What do you think? I see similar apartments selling new for 300 million pesos, so I'm not sure if these old appartments requiring some TLC are at discount price..

• https://www.macal.cl/Detalle/Propiedad/48521 - 122 m2 (4b + 3baths + bodega + 1parking) ** I found this property being offered by real estate normal listing in Portal Inmobiliario for 230 million way before, this one was my favorite of all the listing on today's Remate

• https://www.macal.cl/Detalle/Propiedad/48421 - 111 m2 (4b + 3baths + bodega + 1parking)

And then this one sold in Nuñoa with one quarter of sqm space (only 33 m2) for 105 million - it doesn't make sense, compared with the previous two. if you rent it on 350 lukas on 2021 with 3% inflation, and the house is always fully rented, the house would be paid in 20 years.

• https://www.macal.cl/Detalle/Propiedad/48420

Also some parking spots in Vitacura sold around 8 million pesos each.

• https://www.macal.cl/Detalle/Propiedad/48333

What do you think of these prices?

[admin]

yea, still watching.

that house in front of the emergency room in puerta varas went for 322 million. that was like the third remate. no one wanted it before.

[admin]

having all sorts of problems with their web site.

[paladin]

The parking prices sound about right for the area, compared with around 15 million in say Nueva Las Condes. My doubt about those in Vitacura is the rentability. In Nueva Las Condes you can be pretty sure they’ll be rented continuously.
The apartment in Nunoa for its size and location, I would say was not a good deal, as these types can be easily bought for less and without going through the auction process etc.

[Baltimore]

Wondering how are the global mortgage and real estate markets going to react to what is going on?

https://www.npr.org/2020/04/08/83023750 ... -pays-rent

[41southchile]

Had an offer last week from someone that I thought was interested in buying a parcela , well they are interested and want to get out of Santiago but they cant sell there. They wanted to swap an appartment in Santiago for one of our Parcelas, . We still had to put in about 30 million for the difference, so they could build. Politely declined the offer.

[admin]

Yea, seeing a fairly steady stream of "get out of Santiago at any price" crowd; with a much larger segment of "find me something in the south, and I will buy it as soon as they lift the restrictions" crowd.

I know some people that were moving their family to Florida due to the social crisis, have not been able to sell any of their properties in the central region. The pandemic might point them south, as Florida is not looking like a place to be (for any reason).

If the social crisis did not motivate them, the pandemic sure did.

I have been saying for years Chile needs decentralize; this might just do it. We are at something like 70% of the cases are in RM.

Unfortunately, who gets left behind?

[admin]

yea, seems the demand in RM is shifting to houses and apartments with bigger patio.

https://www.df.cl/noticias/empresas/con ... 81439.html

[Baltimore]

https://www.biobiochile.cl/noticias/eco ... icas.shtml

Now I know a couple of newlyweds that moved out of their apartments in Las Condes because they cannot afford to pay their mortgage now that both are unemployed. They are living with their parents, they rented their apartments for a fraction of the mortgage payment, they are paying the difference with savings and help from their parents.

[admin]

https://www.biobiochile.cl/noticias/eco ... icas.shtml

Now I know a couple of newlyweds that moved out of their apartments in Las Condes because they cannot afford to pay their mortgage now that both are unemployed. They are living with their parents, they rented their apartments for a fraction of the mortgage payment, they are paying the difference with savings and help from their parents.

which is the same as shift of thousands of people leaving the upper middle class to the lower middle class, and in the course of that displacing housing in the lower middle class in Santiago. That shift was already in the hopper due to the social crisis.

[41southchile]

Yea, seeing a fairly steady stream of "get out of Santiago at any price" crowd; with a much larger segment of "find me something in the south, and I will buy it as soon as they lift the restrictions" crowd.

I know some people that were moving their family to Florida due to the social crisis, have not been able to sell any of their properties in the central region. The pandemic might point them south, as Florida is not looking like a place to be (for any reason).

If the social crisis did not motivate them, the pandemic sure did.

I have been saying for years Chile needs decentralize; this might just do it. We are at something like 70% of the cases are in RM.

Unfortunately, who gets left behind?

Yeah it will be at any price for a lot of them, unable to sell their apartments and unable to rent them, not everyone can afford to walk away from something like that however.