Our study of new product developments in the Vallarta region established 125 resort real estate developments. We obtained the lowest starting price and the highest list price for each project. The results showed that the median average (half below and half above) for the lowest starting point was $380,000 USD. The median average for the highest list price was $1,060,000 USD. The average of these two, again using the median average, was $542,000 USD. This was for both condos and homes. If we focus on just condominiums, the median average was $356,000 USD. So the average list price for a new condominium is $356,000 USD. If we compare this to what the median average list price was for condominiums in the MLS resale market (Multi-List Vallarta), we come up with $272,000 USD. Purchasers are paying a premium (30%) to obtain a new condominium over an existing property in Vallarta. Why so much? Well, purchasers like new things and the new amenities that come with new developments. As well, most of the new projects have premium locations along the beach or on the hillside overlooking the bay. An older property is built with older building techniques, architectural design and style. The older it is the more maintenance or renovation it may need. This doesn’t mean, that like a car, you lose value when you drive it off the lot. The new unit retains it value for the same reasons that an older unit is valued for less – it has more to offer with regards to newness, style, location, view and minimal maintenance.
Average List Prices in 2007 for new Product