VIEWPOINTTM

Heard in the bay.
By Harriet Cochran Murrray - Cochran Real Estate - October 2007

"I have heard of a man who had a mind to sell his house, and therefore carried a piece of brick in his pocket which he showed as a pattern to encourage purchasers. "
Jonathan Swift 1724          

I have had the opportunity the past few weeks to take clients to many parts of the Bay in search of real estate. These tours have given me the opportunity to talk to the AMPI brokers and agents in whose offices we have been.

La Cruz de Huanacaxtle

The new marina in La Cruz is receiving a lot of interest. Marina La Cruz can accommodate up to 400 vessels, and will have a fuel station, dry dock, yacht club, hotel site, and condominiums along with retail and restaurants. The first docks with slips are expected to be ready this December for long-term or short term leasing. The developers tout that 85% slips are already reserved.

So this new amazing facility has created a great deal of real estate interest in this once small fishing village. One of the local brokers told me that they expect the high season to continue to bring more clients looking for opportunities to purchase residential and commercial sites because of the anticipated growth in the area.

La Cruz is located near the center of the Bay. The development of a major marina with more commercial and retail brings in condominium housing and other “roof tops” for living, as well.  The synergy created from this center point gives vitality to the center of the Bay as well as Punta Mita and Vallarta areas.

In La Cruz, we were told that the prices for land (with tear down buildings) are $4,000- $5,000mn ($370-$463USD) a square meter.  These are prices within the streets and cross streets nearest the marina project and commercial frontage on the highway. Other zones on the west side can command $3,500-$4500mn per meter or $324-417 USD per square meter.

Preexisting custom homes built on the water where the new marina is coming, have seen an increase in prices.

Bucerias

In this popular community just south of La Cruz, Bucerias is divided by the highway.  The area west and toward the ocean commands the highest prices for land, residential, commercial and retail.  The area closest to the ocean on this side can be $5,000USD a square meter. It is a small area of a few blocks, but what a price! 

Further toward the highway, but still in the beach section, the prices can be $1,000USD a meter. This seasoned agent told us that many people are looking to buy land in the zone between the highway and the beach for condo projects.  Many of the condominium projects in this part of Bucerias are not large, but you can say there is a land rush for construction projects.

Across the highway and to the east, properties are being priced for their land value.  Most of the buildings we saw were tear downs. The asking prices were in the $70-85USD range a square meter.

Alamar is a planned tropical community with its own “pueblito” set in the mountains overlooking La Cruz and Playa Manzanilla. 600 units are planned on over 90 acres of land. Plans are being developed for terraced condominiums and villas.  The idea is to create the feel of a village with commercial and retail to sustain and enrich the community.

On the beach side between these two towns, there is a new construction ocean front condominium of 42 units on 13 levels, beginning in price close to $200,000 USD a unit. There should be beach amenities and pools as well.

Both these new developments are announced this year and still in preconstruction.  The developers want to offer more affordable product since the in town areas have become expensive.

Punta de MIta

Punta Mita is the area of the tip of the Bay which includes the Punta de Mita 4 Seasons Project of over 1500 acres, and the small villages of Anclote and E.Zapata nearby. 

This well-known area has become a brand name. Clients walking off the planes talk about going to Vallarta or Punta Mita. The Punta Mita Master Project recently hosted a full day seminar to train the areas AMPI agents on the procedures and properties available within the gated community famous for the 4 Seasons Hotel and Resort.

Builders in the North are constructing spec homes in gated communities in the $3 million to $5 million dollar range. Lots on the ocean within Punta de Mita are up to $5 and 6 million dollars…… just for the land.

Another boutique hotel, the St. Regis Resort is under construction to open late this year.  There will be a second Jack Nicklaus Signature golf course within the private gated community.  If you want to belong to these clubs, the membership is available to home owners within the community. There are condominiums and town homes, as well as lots and single family homes for sale.

Puerto Vallarta and South Shore

Clients looking recently for a luxury second home commented that the homes in the price range of $2 million to $2.5 million dollars, offered more amenities, view and quality furnishings than it was possible to find in their own market on the US West Coast.  They were amazed at what this “medium million dollar price range” offered them.  They commented that when we moved up to this price range, the “WOW” factor came into play,

This couple was surprised at first to learn that the majority of homes in the $2.5 million dollar range are not on the ocean or beach side, but in the green forested foothills of the Sierra Madre.

The south shore has fewer new developments, but what is available is unique, stylish and can compete with any luxury area of the Bay. The topography of the coast line south lends itself to single family homes or smaller condo buildings. Private gated communities are offered, since there are few land areas large like Conchas Chinas with city streets.

On the south shore, lots can command $1,500,000USD and completed home prices are in the $2 plus million dollar range to a current high of $12,000,000USD for a unique ocean front custom home.  Remember, the south shore means ocean front and mountain side.

Near the Bungee Jump, first-rate pre construction in a small oceanfront condominium project will be priced an average of a million dollars per unit. 

As in the north end, gated communities offer private beach clubs on the public beaches of Mexico.

View lots within a gated community on the mountainside are up to $445USD per meter. These lots have underground utilities, cobble stone streets, and are only 40 private home sites.

To some other North Americans, these lot prices sound like “retail prices,” which are traditionally more than the cost of land for homes in the US and Canada. The land prices here reflect the demand for ocean view properties in one of the most desired destinations in the world. 

The profile of the client has changed the past few years. Buyers are looking not only at several beautiful locations in Mexico, but locations in Asia and Europe. How exciting to have the choices!  This global search for a primary or second home is becoming more prevalent.  These buyers want beauty, climate, community character, and infrastructure with health care, safety, lack of pollution, entertainment and restaurants, efficient airports and flights to home ports. 

. Note: To convert meter to feet, multiply metes by 10.765.