Puerto
Rico housing values have begun to stabilize in certain market segments
and regions across the island, buttressed by the recently extended
incentives provided by the P.R. Housing Finance Authority (AFV by its
Spanish initials).
The incentives, which provide aid to cover the down payment and
closing costs, are allowing many buyers, who otherwise would be unable
to purchase a home, the opportunity to do so.
This has created price support for properties accessible to the
majority of working citizens—particularly those properties priced under
$200,000. The average price of a property financed with AFV incentives
is $153,000. Sales aren't limited to a specific geographic area.
Borinquen Valley in Caguas, a relatively new development with new
homes still available, has seen sales in the past two years creep up
from $120,000 to as high as $138,000 in May. The new units still
available, which are slightly larger than the previous phase, are priced
starting at $165,000 and are selling well, with only five available of
the 70 constructed in this phase.
Arboleda in Humacao is another new development that has had excellent
acceptance in the marketplace. The three-bedroom units start at
$130,500, and only two or three units are left of the 146 originally
constructed.
Puerta de la Bahía in Santurce formerly was a 15-story public-housing
building. At one point, the government considered imploding the
building; however, a forward- thinking developer bought it, remodeled it
with a modern open-floor plan and started marketing it several years
ago. The units began in the low $100,000s and are now in the $120,000s.
The project is more than 90% sold.
All three projects are examples of new construction in a variety of
geographic areas and housing types that haven't seen a decline in
housing value. Some have seen price appreciation, in large part due to
the scarcity of quality housing in this range.
Existing homes in historical neighborhoods are also in high demand at
certain price points. A four-bedroom, two-bathroom house in Puerto
Nuevo's Las Lomas neighborhood of San Juan was listed at $120,000. The
property received close to a full-price offer the first week it was
listed, and is currently awaiting closing. "Every day, I receive calls
for that property from prospective buyers. I wish I had 10 of them
because I would have been able to sell them all," stated real-estate
agent Manuel López.
Land values also have been rising in certain attractive areas. In
April 2006, at the height of the real-estate market, a 1,000-meter lot
in the beachfront community of Mansiones de Playa Hucares in Naguabo
sold for $53,000. Currently, the lowest listed property of comparable
size in that development is $75,000.
The real-estate market isn't completely out of the woods. There are
dozens of high-rise condos in the San Juan-metropolitan area priced over
$200,000 that are experiencing very low absorption rates.
"Some of those developments are going to take a very long time to
sell and many units will remain vacant for years," commented José Nolla,
president of the Associated General Contractors (ACG by its Spanish
initials).