As the industry grappled with new currency controls, property sales in Argentina fell 44.7 percent in June compared to the same time a year earlier. qatar seal
According to the Buenos Aires Association of Notaries Public, sales of 2,632 homes totaled $1.5 billion in June, down 37.2 percent from the same month last year.
The new Cedin scheme, a currency exchange instrument produced by the government to restart property sales, may not be reflected in the June results.
Argentina's President Cristina Fernandez de Kirchner released legislation prohibiting the use of dollars to purchase real estate in 2011, causing sales to plummet. In May, the government responded by issuing Cedin certificates in exchange for Argentinians' undeclared dollars in the region.
Cedin can then be used to buy real estate.
According to Jose Rozados, director of consultancy Reporte Inmobiliario, "some owners who were willing to negotiate prices in recent weeks agreed to postpone the deal, hoping that the Cedin would enable them to sell without resigning their dollars."
According to La Nacion, the June transaction numbers most likely represent sales activity in May due to delays in closing deals following the introduction of Cedin.
"The market is complex, and no single factor explains the poor performance," Hugo Mennella, president of the Buenos Aires Association of Realtors (CUCICBA), told the paper. "In recent months, the electoral factor has also played a role, because historically, buyers are more cautious and tend to wait during election seasons."
In June, the average purchase price was about $108,000, down 4.2 percent from the previous year. During the month, revenue of more than $900,000 accounted for 8.1 percent of all sales, down from 11.2 percent the previous year.
According to the paper, more than a third of the sales were for between $47,000 and $94,000.
South Beach Hotel is being purchased by Argentinian investors.
The former Plaza Hotel on South Beach was bought for $5.5 million by an Argentine investment company known as 418 Meridian LLC.
LeaseFlorida, which bought the 20,809-square-foot property in 2012 after foreclosing on a $3 million mortgage plus interest and fees, was the seller. According to the South Florida Business Journal, it has since made the building structurally sound and corrected code violations.
A three-story, 60-room hotel and a one-story apartment building make up the house. Meridian Lender LLC provided the foreign investors with a $2.78 million mortgage with a January 18 maturity date. According to the Business Journal, they intend to renovate and reopen the hotel, which has been closed for many years.
Another Miami property is purchased by an Argentine developer.
Argentina's Melo Group has acquired land in downtown Miami, directly across the street from the Genting Group's proposed casino and hotel complex.
According to the South Florida Business Journal, Melo paid $9.5 million for the 43,312-square-foot property. According to the Business Journal, the company plans to construct a hotel and residential complex on the property, which is adjacent to the Adrienne Arsht Center for the Performing Arts.
Last year, Melo completed five projects in Miami, totaling 800 apartments.