JeanSis

Hi all, i see on different websites including polaris world themselves offering properties on different resorts at discounted prices. there appears to be a lot of properties being offerd for less then what was originally paid for them. are these the same properties being offered on loads of websites or are they just agents talking down the market. Now I appreciate that if someoe decided to buy a property last year and what with the credit crunch and all that they cannot complete but i dont  appreciate polaris world selling off at a discounted price and then building more similar properties at el mirador while our investments are being undermined
ANY OPINIONS

It's hard to get a feel for the size of this market. I had assumed that the resales were primarily either those from people who had backed out or the last few properties that PW wanted to clear off their books (often these are the properties in the least favourable locations, etc). I can't believe any business (in this case PW) would continue to build properties they didn't think they could sell at a reasonable price so I have taken their continued construction activity as a positive sign.

We should bear in mind that most on the current and ongoing construction are properties that were sold a more than a year ago, i.e. before the credit crunch, so I wouldn't necessary assume that it's a sign of confidence for the future development. I'd be surprised if the sales today for completion in 2010 onwards are anything like as high as they were a couple of years ago, so I think it's logical to assume that when the current developments under constuction are completed there will be a delay in starting the next developments until the markets pick up again.

I suspect the majority of resales are due to people being unable to complete due to inability to secure a mortgage, and those who speculated by buying off-plan in the hope of selling their contract at or near completion for a profit. 

Those who for whatever reason have to sell quickly will have to drop their prices, in the current climate there's nothing much that Polaris can do about that. 

My glass remains half full however. I'm confident that in the long term we have made a sound investment.