(As of September 29, Chile had reported 461,300 cases of Covid-19 – a much higher per capita rate than neighboring Bolivia and Argentina and even higher than that of Brazil – and 12,725 deaths, according to the New York Times’ coronavirus map.)
Santiago’s high-end market has been stable for decades, said Luis Novoa, CEO of Chile Sotheby’s International Realty. He estimated the average asking price of his agency’s properties at around $ 800,000, or $ 330 per square foot.
The social unrest that erupted last fall initially spurred a surge in high-end property supply as wealthy homeowners decided to sell vacation homes, but that trend has slowed, Novoa said. Now buyers are waiting for the results of an upcoming national referendum in October. However, investors have started jumping into real estate with price cuts, and some are buying unseen. These conditions also encourage high-end buyers to offer well below the asking price.
Across Chile, luxury prices range from $ 750,000 for a family villa in Santiago to $ 20 million for select properties in Patagonia, said Martin Rivera Saez, director of Alto Andes, a luxury agency based in Santiago. But there has been a shift in what is viewed as luxury, he added. In the past, buyers wanted “large villas with luxurious finishes in areas with privileged views”. A few years ago the “concept began to change” and buyers were looking for “less ostentatious” apartments that were easier to maintain.
As land is scarce for new development, “we’ve seen vertical densification” with large single-family homes being replaced with high-quality condos of seven to ten apartments, Novoa said. In the meantime, areas with “large areas and a better quality of life” are increasingly in demand among the upper middle class.