Here is some crazy distortions, all in the same condominium just outside of Frutillar a couple Km.
First property I bought, 5000 square meters was for 17 million pesos, near the front of the condo. Think like 7 years ago. The same day, I looked at another property in the same condo for 20 million, but all the way at the back. Typically the lots up front in a development tend to appreciate faster. The lot in back though was nice.
Fast forward about 5 years, I had not been paying much attention to the market values around, but I was guessing the value of that went up to about 40 to 50 million. The 2 hectare property, sharing the property line with my property and outside the condo so no water rights, sells for the equivalent of 80 million pesos per 5000 square meters. It was on the market for about 6 months. My wife and I even met with the real estate agent, but we had other things going on. That was a couple of years ago, prices have moved more than that. So, I would say it has a market value of about 100 million right now, mas o menos.
About the same time, 5 years later, we are talking to the real estate agent that had originally showed us the property in back. It was still on the market for 20 million pesos after 5 years. I knew the real market value was closer to 50 million. As soon as I heard that, I called my brother to see if he wanted to go in half. It was a go. I called the real estate agent. He had just signed the sales contract 30 mins before, and one of my other neighbors bought it. That one still ticks me off. After 5 years, to miss it by 30 mins.
Oh, well. Moving on.
Second lot I bought, the seller wanted 35 million. More towards the back, but not all the way. We were going to buy it on mortgage, so the bank sends out an appraiser. I go out with the appraiser, she had not appraised anything in Frutillar in a couple of years. She determines the property is worth like 20 million. Which, under the circumstances, I was just going to bite my lip and not say anything. We wanted a low ball appraisal, even though that 20 million was no where near market price, to use to negotiate with the seller. We got if for 28 million. I flipped that property to my sister in law that afternoon for like 32 million. She did not have the money at the moment, but we knew she would shortly, and the property was perfect for her and the family. So we bought it, held it for 6 months, sold it to them.
A friend, last year, bought a property 4 lots up the road from that one, for 50 million, and further to the back of the condo.
We then bought the lot next to my sister in law, with a house. The bank appraiser, essentially pegged the raw land without the house at 80 to 100 million pesos. So, according to the bank, my sister in law's lot moved from 28 million to over 80 million, in about two years.

The irony is, before we bought that property, we bought another from the same seller on the other side of the condo. Basically there are two roads in our condo. We paid 35 million for that lot, about a year and half ago. Now, directly next door to that lot, like sharing a fence next door, with no view of the volcano or lake due to some trees blocking the view, there are three lots in a row for sale, for 50 million each.
But, the even stranger thing is. If you drive out of Frutillar, about 9 to 10 km, around the lake, they are selling lots for 100 million or more. We are walking distance to town, vs. a fairly long drive that is basically on the edge of the municipality. Another 100 meters, and you could not even really say you lived in Frutillar.
The only thing that really makes sense out of those numbers, is the level of promotion involved when they are sold. Those lot's being sold at 100 million or more outside of town, have a big fancy web site, a national real estate agent, etc. Really, when I finally decide to cash in, I could do the same thing just as easily and make these properties sound like the best thing since sliced bread. For the time being, I am just going to quietly keep acquiring lots as I hear about properties coming up for sale that are at distorted prices.