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In and around the capital of Santiago, social unrest and the coronavirus pandemic have created a market in which developers compete for customers.
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By Roxana Popescu
This modern six-room space is located on a residential street in Lo Barnechea, a luxury commune on the outskirts of santiago’s metropolitan domain in central Chile.
The 3445-square-foot concrete space built in 2005 on a lot with one-quarter-acre terraces, with floor-to-ceiling windows designed to maximize the perspectives of the Andes Mountains from many rooms, as well as from the giant courtyard and lawn on two levels. .
The front corridor leads to a door facing the terrace and lawn, on the right is a workplace with access to the lawn and on the left the living room, dining room and kitchen. The living room, on the Brazilian parquet floor, is separated from the adjacent dining room through a few steps and a stone wall with fireplace. Both bedrooms, the lawn, the L-shaped pool and the mountains beyond through floor-to-ceiling windows, as well as the workplace. for visitors is near the front.
The spacious kitchen, which opens onto a patio overlooking the house’s 3 car parks, as well as the lobby and a bright, airy passage to the dining room, has marble countertops, a central island and an adjacent room for laundry and storage. Beyond the laundry room there are two bedrooms and a bathroom for Array.
An open wooden staircase near the front goes up to the floor for the time being, which has 4 bedrooms with mountain views, the master suite has a dressing room and doors that open to a terrace overlooking the garden, the other 3 bedrooms have two bathrooms.
The space has a safety formula and underfloor heating. Going down from the covered back terrace, the landscaped lawn has a flat lawn and the pool occupies the 3rd and lowest point of the property.
Santiago, Chile’s capital and largest city, with around 6. 7 million inhabitants, is located in a valley surrounded by the Andes and chile’s coastal chain. The town of Lo Barnechea, in the northeast corner of the city, is located at the foot of the Andes Mountains and offers skiing, horseback riding and in Cerro del Medio Park. Arturo Merino Benez International Airport is about 40 km to the west.
Chile’s residential real estate market has recently experienced years of stable growth, first with a wave of protests against such violent inequality in late 2019, and then with the coronavirus pandemic.
Yuval Ben Haym, regional director of RE/MAX Chile, said Chile is now in the middle of a buyer’s market. Citing RE/MAX data, he estimated that costs in Santiago have fallen by about 3-4% since the beginning of 2019, noting that a government stimulus measure that allows buyers to take advantage of pensions to buy real estate has helped stabilize the market.
Developers of new homes are cutting costs to compete with buyers due to the pandemic, which has stopped the structure for months, he said. “Developers want sales speed to be successful because they have high-interest loans. “
A recent report from Yapo. cl’s research department, an online marketplace, revealed that at the time of the 2020 quarter, there were 46% fewer homes and 35% fewer apartments for sale in Chile (where the market is strongly Santiago), at the same time in 2019. La demand also fell since the first quarter of the year: 29% for homes and 35% for apartments , until the first quarter of this year.
Another report on the time of 2020 through Portalinmobiliario, a Chilean real estate portal, revealed similar discounts at the source in Santiago, but also showed a slight increase in values, with departments rising more than 4% and houses around 3%. Average value of two bedroom apartments in the domain at the time highest room in the commune of Vitacura (neighbor of Lo Barnechea), in 10762 UF ($393,800), and the lowest in Puente Alto, in the southeast corner of Santiago, in 1270 UF ($46,500).
(Chile uses Chilean peso, but the genuine real estate market uses the UF, “an indexed rate of non-current currency that automatically adjusts to inflation so that the price stays constant,” said Macarena Laso Aguirre, wife of the law firm Morales. in Santiago.
Ben Haym said the pandemic had shaken the market, and expects a valuable correction to be imminent. “If you can, other people are waiting to see how things are going before they buy, with this callpoint to cut the value too,” he said. “I’m sure the next two months will make up for the relief we’ve noticed in the last two months because of the coronavirus. “
(As of September 29, Chile had reported 461,300 cases of Covid-19, a rate much more consistent with the population rate than neighboring Bolivia and Argentina, and even more consistent than Brazil’s, and 12725 deaths, according to the New York Times coronavirus map. )
Santiago’s high-level market has been strong for decades, said Luis Novoa, ceo of Chile’s Sotheby’s International Realty, who estimated that the average selling value between homes with his firm is approximately $800,000, or $330 consistent with the square foot.
The social unrest that erupted last fall led first to an increase in the source of luxury homes, as wealthy owners sold holiday homes, but that trend has slowed down, Mr Novoa. The next national referendum in October. However, investors have started jumping on houses with downslaughts, and some are buying without seeing them. These situations also inspire high-level buyers to offer well below the value requested.
Across Chile, luxury costs a diversity from $750,000 for a family circle villa in Santiago to $20 million for some homes in Patagonia, said Martín Rivera Sáez, director of Alto Andes, a luxury firm founded in Santiago. But there has been a change in what is considered luxury, he added. In the past, buyers were looking for “large mansions with sumptuous finishes, located in spaces with privileged views”. A few years ago, the “concept began to change” and buyers began looking for “less ostentatious” and less difficult apartments.
Because the terrain for further developments is scarce, “we have noticed a vertical intensification,” replacing giant single-family homes with luxury condos of 7 to 10 units, sir. Novoa. In the meantime, the spaces “with large open spaces and a higher quality of life” are those called by the upper middle class.
For example, Rivera said the pandemic had accelerated interest in the southern region of the country, and his company recorded a 40% spike in transactions between March and September, at the same time last year.
About 95% of buyers in Santiago, as in Chile in general, are Chileans, Rivera said. Foreigners moving to Santiago move with work in the mining, forestry, agricultural or fishing sectors, and regularly come from China, Spain, etc. Italy, the United States, Australia and Great Britain.
Novoa said the exchange rate makes it a smart time for foreigners who pay in dollars to buy in Chile. “However, ” he said, “we have not noticed any adjustments to that of foreign buyers. “
Southern buyers come with Chinese investors and Chilean marketers or start-ups that buy major residences, Mr. Rivera, many for smart schools and “a higher quality of life. “The expansion of e-commerce and remote paintings has also driven this departure from Santiago.
Most foreigners can buy real estate in Chile without restrictions, citizens of neighboring countries cannot shop in spaces near foreign borders, said Ms. Laso, Morales’ wife.
Prices and loans are set in UF but are paid in pesos at the UF rate on the payment date. “This, in fact, the threat of inflation is passed on to the buyer / debtor of a property,” Lao wrote.
Visiting Chile: chile. travel/en
Holidays in Santiago: chile. travel/en
Government of Chile: gob. cl/en
Spanish; Chilean Peso (1 CLP – $0. 0013 USD)
Closing prices when buying a home with a credit range from 0. 7% to 1. 2% of the acquisition price, adding commissions and legal fees, Laso said. Costs decrease if the acquisition is paid in cash.
The commission, divided between customer and seller, is 4% of the acquisition price, and a value added tax of 19% is applied on this commission.
“If there is no genuine real estate agent involved, which is common, no commission is paid,” Laso wrote.
Maria Angélica Errzuriz Gubbins, Chile Sotheby’s International Realty, 011-56-2-3224-4491; sothebysrealty. com
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