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Thursday, May 23 2019 @ 11:40 PM UTC

85% of the Construction Boom Depends on Panamanians

Money MattersBy Marianela Palacios Ramsbott for La Prensa - It's a myth. The construction boom does not depend mainly foreigners buying houses in Panama, but rather on Panamanians. According to the Banking Association of Panama (ABP) 85% of clients who applied for mortgages in 2007 were buying houses worth $50,000 or less, and only 4.9% of mortgages granted had a value above $100,000 dollars. "That is very positive, because it demonstrates the boom does not depend on external factors, but rather on ourselves," said Gustavo Villa, the Director of Economic Studies of the Banking Superintendent. Yesterday during a presentation yesterday on the economic results of 2007 given by the National Council of Housing Promoters, their Vice President José Batista said the deficit went down by 20% in the last three years.

Editor's Comment: Well, not so much. This article looks at the back side of a trickle down and then tries to credit the success to the air that's already in the balloon, as it were. It goes like this - money that's already in the Panamanian economy goes around and around, like it always has. The Panamanian economy is growing at a glorious 10% per year, and much of that expansion is due to the infusion of brand new money into the economy. 2007 was about the fourth straight year of significant growth so the expansion has some legs and it's been going strong for awhile (not a flash in the pan.) New money injected into an economy as small as Panama's quickly trickles down (to some small degree) to almost everyone in one way or another. Now everyone is doing a little better and most people want to improve their living situation. This report reflects that many of the little guys are spending some of the money that's been injected. This article would have you believe 85% of the construction boom would still be happening if the other 15% (the fresh money) was not pouring in. And that's just not correct. It really is a cart-horse thing - the new money is fueling the growth and expansion of the local economy. What's so wrong with that? And in reality, that's exactly what is being reflected by these statistics.

ESTADÍSTICAS BANCARIAS.

Viviendas de $50 mil encabezan hipotecas

Marianela Palacios Ramsbott marianelap@prensa.com

Es un mito. El boom de la construcción no depende principalmente de los extranjeros que están comprando viviendas en Panamá, sino de los panameños.

La Asociación Bancaria de Panamá (ABP) señaló que el 85% de los clientes que suscribieron hipotecas en 2007 usará ese crédito para financiar viviendas que valen $50 mil o menos, y solo un 4.9% de las hipotecas concedidas financia viviendas con un valor superior a $100 mil. "Eso es muy positivo, porque demuestra que el auge no depende de factores externos, sino de nosotros mismos", dijo el director de estudios económicos de la Superintendencia de Bancos, Gustavo Villa.

Ayer, durante la presentación de los resultados económicos 2007 del Consejo Nacional de los Promotores de Vivienda, el viceministro de Vivienda encargado, José Batista, señaló que el déficit bajó 20% en los últimos tres años.

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85% of the Construction Boom Depends on Panamanians
Authored by: Anonymous on Thursday, February 21 2008 @ 07:21 PM UTC

Did the survey take into account all the foreigners who paid cash for their apt/condo? Foreigners have a much more difficult time of obtaining a mortgage than the locals.

Very few of the high rises going up start at $50,000.00!