How many condos does Panama City need?

One of the things that surprised me the most about my trip to Panama is the amount of development going up in Panama City, Panama. There are literally dozens of highrises going up right now, in addition to the dozens that are already there. Panama is a fairly small city, about 600-800 thousand residents, based on different estimates. Yet, judging by the skyline, you would think that this is a multi-million resident metropolis.

I have talked to a few people about this and they thought the development had to do with a) rise in tourism, b) banking, and c) planned expansion of the Panama Canal. Still, I don’t understand why the need for thousands of condo units. Even Donald Trump has been developing here. Well, gambling and prostitution are legal here. Is this going to be the Vegas of Latin America?