Puerto Vallarta Lifestyles Magazine   Order by Amex   Order by Check   Articles   Profiles   Search

A Ten Year Retrospective of Puerto Vallarta Real Estate - continued by Marla Hoover    summer-fall/99 Statistics from Multi-List Vallarta Changes in the Property Market Today's product is much more sophisticated than that of a decade ago. While properties have retained the "Vallarta style and charm," they have changed to meet demands. Items such as Sub Zero refrigerators, mini-split air conditioning, and corian kitchen counters were unheard of and unavailable ten years ago. Another new advancement is the "turn-key" concept whereby condos and villas are now designed to include everything needed to move in the day of closing. These homes are completely outfitted from sheets to staff. Also unheard of in 1989 was the million-dollar plus market. According to Multi-List Vallarta, the most expensive home on the market at that time was $900,000, which sold for considerably less. In 1999, the market is off to the races with seven properties currently listed in the one- to two-million-dollar price range. The two-million-dollar plus marketplace exists - there are four now listed from $2,450,000 to $3,875,000 - but is the subject of controversy among industry professionals. Some say it is a case of over reaching the market while others say that it shows confidence in it.The number of new construction starts in the "spec" home, custom, and pre-sale market as well as the volume of re-sale properties in all price ranges have steadily increased over the last five years, another sign of consumer and lender confidence. The most sought after property still contains the same ingredients: view, value, design, location, and price. The highest selling market remains the two-bedroom condominium and the three-bedroom single-family residence which have traditionally had the largest inventory. In 1990 there were 98 two-bedroom condos with an average list price of $116,564. In the second quarter of this year the number is 74, with an average list price of $205,925. These numbers are somewhat inflated due to a small number of higher priced luxury units in the Conchas Chinas area. The average 1999 Marina Vallarta property list price of $122,663 is a truer reflection of the two-bedroom condo market. Interestingly, the number of three-bedroom homes on the market in 1990 is the same as today: 40. Ten years ago these three-bedroom houses had an average list price of $217,942. Today the same house would cost $241,215. The 1999 prices are within the $150,000 to $250,000 price range that the realtors agree is the main marketplace at this time. However, houses with four and five bedrooms have doubled in asking price with very little inventory growth. That market had 17 homes available in 1990 compared with 23 today. Yet, in 1990, an average four-bedroom home was asking $257,000; now it is $492,626. The five-bedroom market has doubled in not only price but inventory as well. Ten years ago there were only eight such houses on the market at an average price of $553,750. Currently, there are 19 listed with the average asking price of $908,139. These statistics show steady upward market growth and return of investment for foreign investors of property in Puerto Vallarta. Buyers Today vs. Yesterday Realtors agree that buyers today are more sophisticated. They have educated themselves with market trends and thus are more market savvy than ever before. Moray Applegate of Applegate Realtors defines them as "A highly successful, high-end type of clientele who force us to be cutting edge." He goes on to say "More East Coast Americans, Canadians and Europeans are purchasing here, yet 60% to 70% of the buyers are from the Mid West and West Coast of the US. They range from 45- to 70-years old, retired or semi-retired, who want to spend two to three months out of the year here." Giovanna Mosqueda of Century 21 Giovanna concurs, adding, "We are seeing younger buyers today buying with cash - couples in their 30s and 40s who are buying condos. And, the alternative-lifestyle market is also growing substantially. She also notes that there is "a growing national market of businessmen and their families who are purchasing here." Moray explains that along with homebuyers, "Foreign developers are also investing, as they know what the buyers want and can produce it." Giovanna agrees, stating, "The developers are answering the buyers' demands." Puerto Vallarta has been and remains an attractive market due its close proximity to the United States and Canada. Buyers are also now being attracted to the properties here because of the state-of-the-art product these developers build. They know that their investment dollar will be spent on a home with all the conveniences they are use to and want. The Expanding Residential Region The current prosperity in real estate has driven the market beyond the borders of Puerto Vallarta. Today realtors represent properties south from Boca de Tomatlán and north to San Pancho. Local satellite offices are popping up to serve these outlying areas. Mega-resorts with residential communities including golf courses, spas, upscale club houses, and ultra-modern homes can be found in varying degrees of completion all along the coast of Nayarit. Development trends between Nuevo Vallarta and Punta de Mita, according to realtor Brock Squire, "are being driven by the new four-lane highway and pulled by the 150-million dollar Punta de Mita Four Seasons resort and 1,500-acre planned development." Moray Applegate further explains this trend: "Real estate is going where the land and nicer beaches are; Sayulita, Punta de Mita and San Pancho attract many with their sleepy village feeling. The new road is a major force and has exploded Nayarit. Soon, with the driving time reduced, Punta de Mita will only be a 15-minute longer drive (from Nuevo Vallarta) than it is to Conchas Chinas." Statistics show gains in the north shore market as well. In 1989 a beachfront home with three lots in Nuevo Vallarta listed at $850,000. Currently there is a comparable property listed in the same area for three-million dollars. Furthermore, in today's market just a residential beachfront lot in the same area lists for $700.000 to $950.000. However, Silvia Elías reports, "there are only spotty areas of double and triple gains; not all markets experience this." Not to be overlooked is the even further expansion of development up the Nayarit coast to Plantanitos. Along this shoreline two major ecologically conservative housing developments have taken the market to the pristine beaches of these outer reaches proving that to "get away from it all" may take a little more travel in the next century. Realtors agree this northward expansion shows the continued popularity and security that foreign investors find in Costa Vallarta. Click here to continue...

Back | Top of Page | Home | Free Newsletter | Search | Help | Tell a Friend

m3 © Producciones ViVa