225 New Condos Unsold In Sunny Isles Beach From Market Crash Of 2007 Published on 11/6/2013 8:48:00 PM
As Sunny Isles Beach developers proceed with plans for nearly 1,650 proposed condos, sales of unsold developer units created during the last construction boom in this barrier island city in Northeast Miami-Dade County transacted in 2013 at their slowest third quarter pace in nine years, according to a new report from CondoVultures.com.
Developers sold less than 30 new units for more than $13.5 million in Sunny Isles Beach between July and September of 2013 compared to nearly 55 units for $33.9 million in the third quarter of 2012 and about 215 units for $137.5 million in the third quarter of 2011, according to an analysis of Miami-Dade County records.
Compare this to the same July-through-September period of the six previous years when developers sold anywhere from nearly 95 units to more than 250 units, respectively, between 2005 and 2010. In the third quarter of 2004 as the previous South Florida construction boom was gaining momentum, developers transacted - and recorded with Miami-Dade County - less than 10 new condo unit sales, according to the report.
"Sales of new condo units from the last boom-and-bust cycle are moving at their slowest pace in nearly a decade in Sunny Isles Beach," said Peter Zalewski, a principal with the Greater Downtown Miami-based real estate consultancy Condo Vultures® LLC. "Developers - who still control more than 220 units created during the last boom - are increasingly competing for buyers against investors who purchased during the recent downtown and are now reselling. Competition is also coming from the wave of newly proposed condo projects slated to be built on the Sunny Isles Beach coast."
CondoVultures.com has been profiling condo trends in the third quarter of 2013 in the 10 largest coastal markets in the tricounty South Florida region of Miami-Dade, Broward, and Palm Beach counties since the week of October 14, 2013.
The Condo Vultures® Market Intelligence Report™ is scheduled to publish a 10-part weekly series that analyzes the markets of Greater Downtown Miami, South Beach, Bal Harbour / Surfside / Bay Harbor Islands, Sunny Isles Beach, Aventura, Hollywood / Hallandale Beach, Downtown Fort Lauderdale and the Beach, Pompano Beach, Boca Raton / Deerfield Beach, and Downtown West Palm Beach and Palm Beach Island.
As of September 30, 2013, about 225 condo units - representing less than four percent of the more than 6,300 units created since 2003 - are unsold in Sunny Isles Beach from the last South Florida boom-and-bust cycle, according to the report.
At the slower sales velocity of the third quarter of 2013, Sunny Isles Beach is now on pace to sell out in the second half of 2015 at a time when many of the newly proposed condo towers - such as the 400 Sunny Isles, Chateau Beach, Jade Signature, Mansions at Acqualina, Porsche Design Tower, Regalia, Parque Towers, and Unique - are slated to be under construction or already completed, according to the Preconstruction Condo Projects Database™.
As of November 6, 2013, nearly 300 Sunny Isles Beach condo units - created since 2003 - are on the resale market at an average asking price of more than $775 per square foot, according to an analysis by the licensed Florida real estate brokerage CVR Realty™.
In the third quarter of 2013, buyers purchased about 92 units - created since 2003 - on the resale market at an average price of nearly $610 per square foot in Sunny Isles Beach, according to data from the Florida Realtors association.
On the rental front, about 227 units created during the condo boom are available for lease at a median asking price of more than $3.65 per square foot per month as of November 6, 2013, according to the report.
In the third quarter of 2013, renters leased more than 75 units created during the condo boom at a median price of nearly $2.50 per square foot per month between July and September of 2013, according to the data.
Sunny Isles Beach is a 40-block stretch from the town of Golden Beach boundary south to Haulover Beach Park, Biscayne Bay east to the Atlantic Ocean. Sunny Isles Beach is divided up into three neighborhoods separated by causeways: North, Central, and South.
Developers created 26 projects with more than 6,300 units in the Sunny Isles Beach market since 2003. Prior to the boom, developers had built nearly 60 projects with nearly 12,000 units in Sunny Isles Beach, according to an analysis based on the Condo Vultures® Official Condo Buyers Guide To Sunny Isles Beach™.
Overall, the South Florida condo boom has generated more than 6,135 new unit sales for nearly $4.39 billion - an average of more than $440 per square foot - in Sunny Isles Beach between 2003 and the third quarter of 2013, according to the 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 225 Midtown Building at 225 NE 34th St., Suite 209B, Downtown Miami, Florida, 33137. Condo Vultures® LLC can be reached at 800-750-0517.
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