It’s officially Day Three of the real estate market in Argentina A.C. (After CEDIN), and there are more inquiries than actual deals, according to several media sources.
iProfesional says expectations have been extremely high building up to the certificate’s Monday debut, and “the halo of uncertainty will be remain intact for a little while” as buyers, sellers and bankers adapt to the new reality. While every Argentine bank is supposed to have two representatives who can address CEDIN-related inquiries, they aren’t being overwhelmed with requests.
An ICBC branch representative says they received no CEDIN inquiries on Monday, while a Banco Ciudad rep says only one broker called their branch regarding a client who was interested in whitening US$180,000 to purchase a property.
The article says the CEDIN’s debut was hamstrung by a few factors including the fact that a.) the certificates can only be printed once the funds have been declared and whitened, b.) upon receipt of funds, there will be an additional reporting delay for banks to comply with anti-money laundering legislation and c.) it will take some time to develop the secondary market for buying and selling Cedines.
When consulted by iProfesional, exchange houses were short on answers regarding the value of Cedines that holders want to exchange for currency (No Aplicados) rather than real estate (Aplicados). One authority said the floor of the exchange rate would be the Boden dollar ($7.60 pesos per dollar) while the ceiling would be the blue dollar rate, which the government is trying to reel in with Cedines.
Meanwhile the president of the Argentina Real Estate Chamber, Roberto Arevalo tells Ambito.com we should have a better idea of the CEDIN’s progress by the end of July once the traditional winter holidays are over. Unfazed by the slow start this week, he is looking at a bigger picture: “For us the most important thing is that the certificate was adopted to stimulate the purchase and sale of units and new construction.” (Full Story in Spanish)
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