Ice Tower Fails to Complete - Further Update 6 25 07
Below is a MRR and PLR article in category Business -> subcategory Other.
Ice Tower Project Canceled ?" Update as of June 25, 2007
Summary
The Ice Tower project in Panama City has been canceled, with developers announcing refunds for investors. Previously, we reported on this, and here's an update with more details.Article
The developers of Ice Tower in Panama City recently confirmed that the project will not proceed, promising refunds to investors. Initial investments were as low as $1,000 per square meter, but current market rates have surged to between $2,000 and $3,500 per square meter. Though these rates surpass Florida’s real estate prices, they reflect the strong demand here.Many investors in Ice Tower were speculators, often referred to as "flippers," who bought properties intending to sell them at higher prices. This speculative cycle can resemble a game of musical chairs, where a sudden halt could leave some investors unable to sell at a profit. Such investors face either forfeiting their deposits, which could be up to 30% by completion time, or completing the purchase and hoping for future appreciation, often by renting the units.
When numerous properties flood the rental market, rental prices drop. It's better to earn $1,000 a month than to ask $3,000 and find no renters. This dynamic can stall appreciation and trigger a housing market bust.
Ice Tower investors anticipated profits, but now only receive refunds. They could have invested in alternative projects at lower costs and potentially realized profits, leading to a hidden loss of opportunity.
On June 24, 2007, cement trucks were seen pouring concrete into Ice Tower's foundation space. It’s unclear if this was to fill it or to establish a new foundation for another building on the prime site. According to La Prensa, another project is planned on this site, which might explain the concrete activity.
Recently, we've heard, albeit informally, that the new construction is named Iron Tower. This new development, from the same team, aims to rise 75 floors, becoming another major highlight on Avenida Balboa. Prices for previous Ice Tower investors are set at $2,500 per square meter?"a special discount from the $3,200 list price. Investors have the option to transfer to this project or receive refunds.
As details about Iron Tower and the evolving real estate situation in Panama emerge, we’ll continue to provide updates. Stay tuned for insights into the ongoing Panama real estate boom or potential market disruptions!
You can find the original non-AI version of this article here: Ice Tower Fails to Complete - Further Update 6 25 07 .
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