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2,130 New Condo Units Unsold In South Florida From Crash Of 2007
2,130 New Condo Units Unsold In South Florida From Crash Of 2007
Published on 6/29/2013 8:23:00 PM

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Less than 2,150 new condos out of a pool of nearly 49,000 units created during the last South Florida real estate boom remain unsold in the seven largest coastal markets of Miami-Dade, Broward, and Palm Beach counties as of the first quarter of 2013, according to a new report from CondoVultures.com.

Between January and March of 2013, buyers paid more than $135 million - an average of about $343 per square foot - for nearly 340 condo units in projects built since 2003 east of Interstate 95 in the coastal markets of Greater Downtown MiamiSouth BeachSunny Isles BeachHollywood / Hallandale BeachDowntown Fort Lauderdale and the BeachBoca Raton / Deerfield Beach, and Downtown West Palm Beach and Palm Beach Island, according to a report based on the Condo Vultures® Official Condo Buyers Guide™ eBook series.

The buying activity - at a pace of more than 110 new condos monthly - in the first quarter of this year reduced the number of unsold developer units to about 2,130 condos as of March 31, 2013, according to the report. 

"Sales of developer condo units from the last boom-and-bust cycle slowed by 39 percent in the first quarter of 2013 on a year-over-year basis in South Florida's seven largest coastal markets," said Peter Zalewski, a principal with the Greater Downtown Miami-based real estate consultancy Condo Vultures® LLC. "The slowdown in developer condo sales can be attributed to demands for higher prices, strong competition from condo resales, and a growing number of preconstruction projects - at least 140 new condo towers and counting - launching presales in coastal South Florida. At the current new condo sales pace, unsold developer inventory that was created during South Florida's last condo boom-and-bust cycle could take about 19 months to sell out, pushing the closeout period to the second half of 2014."

Since the week of April 15, 2013, CondoVultures.com has been profiling condo trends in the first quarter of 2013 in the 10 largest coastal markets in the tricounty South Florida region of Miami-Dade, Broward, and Palm Beach counties.

The Condo Vultures® Market Intelligence Report™ has published a 10-part weekly series that analyzed the markets of Greater Downtown MiamiSouth BeachBal Harbour / Surfside / Bay Harbor IslandsSunny Isles BeachAventuraHollywood / Hallandale BeachDowntown Fort Lauderdale and the BeachPompano BeachBoca Raton / Deerfield Beach, and Downtown West Palm Beach and Palm Beach Island.

With the first quarter of 2013 developer sales, buyers have now purchased more than 46,635 condo units for nearly $22.9 billion in South Florida's seven largest coast markets between 2003 and March 2013, according to an analysis of Clerk of the Court records from Miami-DadeBroward, and Palm Beach counties. 

The total number of unsold new condos does not include any of the more than 8,000 units that were purchased in bulk transactions by investment groups that plan to one day resell the units at a premium, according to the Condo Vultures® Bulk Deals Database™

In anticipation of the eventual sellout of the new condos created during the last boom, developers are proposing more than 18,560 units in South Florida, according to the Cranespotters.com Preconstruction Condo Projects Database™ compiled by the licensed Florida brokerage CVR Realty™.

As of June 28, 2013, one new condo tower has already been completed in the tricounty region and 23 other highrises - Aventura's Bellini At Williams Island; Greater Downtown Miami's 1100 Millecento ResidencesBrickell Citycentre (two towers), BrickellHouseHabitat IIICON Bay, and MyBrickell projects; Hallandale Beach's Beachwalk; Hollywood's Apogee Beach and Costa Hollywood; Key Biscayne's Oceana (two towers); Miami's 4300 Biscayne Boulevard in the Morningside area and Grove At Grand Bay (two towers) in the Coconut Grove are ; Miami Beach's Faena House Saxony and Residences At Miami Beach Edition; Palm Beach County's 4001 North Ocean project; and Sunny Isles Beach's Chateau BeachMansions At AcqualinaPorsche Design Tower, and Regalia - are under construction as the post-crash development era gains momentum, according to a CondoVultures.com report.

During the South Florida real estate boom, developers created more than 145 projects with more than 34,000 units in the three Miami-Dade County markets of Greater Downtown Miami, South Beach, and Sunny Isles Beach.

An additional 69 projects with nearly 10,200 units were created in two Broward County markets of Hollywood / Hallandale Beach and Downtown Fort Lauderdale and the Beach.

Developers created more than 25 projects with nearly 4,500 units in the two Palm Beach County markets of Boca Raton / Deerfield Beach and Downtown West Palm Beach / Palm Beach Island.   

In the four decades prior to the boom, developers created nearly 700 condominium projects with more than 76,000 units in the same seven coastal markets in South Florida, according to a comprehensive study undertaken for the report based on the Condo Vultures® Buyers Guide™ eBook series.  
  
On a market-by-market basis, Greater Downtown Miami has the distinction of being the single neighborhood with the greatest number of new condos created during the boom with more than 22,200 units. At the end of the first quarter of 2013, less than 610 units remained under the control of the original developers, according to a recent CondoVultures.com report.    

Sunny Isles Beach ranks second with more than 6,300 new units created during the boom. As of March 31, 2013, Sunny Isles Beach has about 280 unsold developer units, according to a recent CondoVultures.com report.  

The popular South Beach neighborhood of Miami Beach ranks third with nearly 5,600 new units created since 2003. At the end of the first quarter of 2013, South Beach has about 590 unsold developer units, according to a recent CondoVultures.com report

Downtown Fort Lauderdale and the Beach claimed the No. 4 spot with nearly 5,250 new units - including the newly created 171-unit Fort Lauderdale Residences also known as the W Fort Lauderdale - added during the boom. 

As of March 31, 2013, the Downtown Fort Lauderdale and the Beach market has about 190 developer units unsold but that could change instantaneously as the remaining developer units in the W Fort Lauderedale project are being marketed for a bulk deal, according to a recent CondoVultures.com report.

The Hollywood / Hallandale Beach market ranks fifth with nearly 5,000 new units created since 2003. At the end of the first quarter of 2013, the Hollywood / Hallandale Beach market is practically sold out with only only unsold developer unit, according to a recent CondoVultures.com report. 
 
The Downtown West Palm Beach / Palm Beach Island market ranks sixth in South Florida with more than 3,400 new units created during the boom. As of March 31, 2013, the Downtown West Palm Beach and Palm Beach Island markets had less than 180 unsold developer units, according to a recent CondoVultures.com report.

At the bottom of the list with the fewest number of new units created is the Boca Raton / Deerfield Beach market, where less than 1,050 condos were added during the boom in coastal South Florida. At the end of the first quarter of 2013, the Boca Raton / Deerfield Beach market has about 280 units unsold, according to a recent CondoVultures.com report.

It is important to note there are various stages to a residential real estate transaction in South Florida.

A transaction begins when a property is made available for sale and ends when a title is conveyed from one party to another party as a result of the recording of a deed with the local government. 

As part of the process, a property typically goes under contract and into a due diligence phase by which a deal can be canceled.  

The CondoVultures.com new condo sales report is based on completed transactions where a deed is recorded and taxes paid as a result of the sale.   

Condo Vultures® LLC is a real estate consultancy and marketing company based in the 425 NE 22nd St., Suite 409, Downtown Miami, Florida, 33137. Condo Vultures® LLC can be reached at 800-750-0517.

Don't forget to sign up for our weekly Market Intelligence Report™ for detailed condo reports to stay informed on the latest market trends and to find out about our various Condo Vultures® Seminars. Looking for a property at a deep discount? Take a peek at the Vultures Database™ or view our Video Library. Looking for bulk projects direct from developers or lenders? Visit the Condo Vultures® Bulk Deals Database™. Our new books, the Official Condo Buyers Guide to Miami™Official Condo Buyers Guide To South Beach™Official Condo Buyers Guide to Sunny Isles Beach™Official Condo Buyers Guide to Downtown Fort Lauderdale and the Beach™Official Condo Buyers Guide to Hollywood / Hallandale Beach™Official Condo Buyers Guide to Downtown West Palm Beach™, and Official Condo Buyers Guide to Boca Raton / Deerfield Beach™, are now available. Want to see every foreclosure filed in South Florida since 2007? Check out our Foreclosure Database™.

© Copyright 2014. Condo Vultures® LLC. All Rights Reserved.  


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Condo Vultures® Realty - Distressed Property Experts
© Copyright 2014. Condo Vultures® LLC. All Rights Reserved.
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