260 New Condo Units Unsold In Boca Raton From Real Estate Crash Of 2007 Published on 12/24/2013 11:06:00 AM
Nearly 75 percent of the 1,050 new condo units created in the Boca Raton / Deerfield Beach coastal market during the last South Florida boom-and-bust cycle have sold as of September 30, 2013, according to a new report from CondoVultures.com.
In the third quarter of 2013, buyers purchased four developer units at an average price of about $742 per square foot for an overall total of $8.8 million, and in the process reduced the unsold developer inventory to about 261 units in the Boca Raton / Deerfield Beach coastal market, according to an analysis of Palm Beach County records.
With the latest transactions, buyers in the Boca Raton / Deerfield Beach market have acquired about 774 new condos created during the South Florida real estate boom that began in 2003 for a combined $701 million as of September 30, 2013, according to Palm Beach County Property Appraiser records.
"The Boca Raton / Deerfield Beach condo market has the greatest percentage of unsold units from the last boom-and-bust cycle in South Florida," said Peter Zalewski, a principal with the Greater Downtown Miami-based real estate consultancy Condo Vultures® LLC. "The unwillingness of developers to negotiate on price has played a key part in the amount of unsold new condos in the Boca Raton / Deerfield Beach market. As the South Florida real estate market improves, it will be interesting to see how the developers are judged based on their strategy."
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.
The Boca Raton / Deerfield Beach coastal market is defined as Spanish River Boulevard south to Hillsboro Boulevard, and the Atlantic Ocean west to Dixie Highway, according to the Condo Vultures® Official Condo Buyers Guide™ series.
In the Boca Raton / Deerfield Beach market in the third quarter of 2013, developers sold about three units in the 200 East Palmetto Park condo tower and one unit in the One Thousand Ocean project on Boca Raton beach, according to the report.
On the resale market, less than 300 condos are available at an average asking price of more than $305 per square foot in the Boca Raton / Deerfield Beach coastal market as of December 24, 2013, according to the licensed Florida brokerage CVR Realty™.
Of the condos being marketed for resale in the Boca Raton / Deerfield Beach coastal market, some 16 percent of the units were created since 2003. The average resale asking price for the condo units created since 2003 is nearly $410 per square foot, according to Florida Realtors association data.
In the third quarter of 2013, buyers purchased about 100 condo resale units in the Boca Raton / Deerfield Beach coastal market at an average price of more than $265 per square foot. Of the condo resales in the third quarter of 2013, about 13 percent of the units were created since 2003 and transacted at an average price of about $388 per square foot, according to the data.
Overall, the Boca Raton / Deerfield Beach coastal market has 114 condo projects - with a minimum of 15 units - for a combined 9,500 units, according to the report.
Based on developers selling about 75 percent of the units created during the boom as of September 30, 2013, the Boca Raton / Deerfield Beach coastal market ranks tops for remaining unsold inventory - in percentage terms - among South Florida’s seven largest condo markets east of Interstate 95 through the end of of the third quarter of 2013, according to the report.
On the preconstruction front, developers have proposed one new condo tower - dubbed the Tower One Fifty Five project - with 209 units in the Boca Raton / Deerfield Beach coastal market as of December 24, 2013, according to the Preconstruction Condo Projects Database™ compiled by the licensed Florida brokerage CVR Realty™.
Overall, at least 182 condo towers with more than 24,675 units have been proposed for the tricounty South Florida region of coastal Miami-Dade, Broward, and Palm Beach as of December 24, 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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