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4,700 New Coastal Condos Still Unsold From South Florida Boom
4,700 New Coastal Condos Still Unsold From South Florida Boom
Published on 12/9/2011 12:19:00 AM

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Fueled by 700 new condo sales in the third quarter of 2011, South Florida's seven largest coastal markets have now sold more than 90 percent of the nearly 49,000 new units created during the boom that began in 2003, according to CondoVultures.com.  

Buyers paid $340 million for more than 900,000 square feet of livable space between July and September of 2011 in projects located east of Interstate 95 in the coastal markets of Greater Downtown Miami, South Beach, Sunny Isles Beach, Hollywood / Hallandale Beach, Downtown Fort Lauderdale and the Beach, Boca Raton / Deerfield Beach, and Downtown West Palm Beach and Palm Beach Island, according to the report based on the Condo Vultures® Buyers Guide™ eBook series

Based on the third quarter of 2011 sales, buyers have purchased nearly 2,600 units for more than $1.5 billion in South Florida's seven largest coast markets in the first nine months of the year, according to an analysis of Clerk of the Court records from Miami-DadeBroward, and Palm Beach counties. 

"South Florida's oversupply of new condo product created during the recent boom is on pace to be sold out by 2013," said Peter Zalewski, a principal with the Bal Harbour, Fla.-based real estate consultancy Condo Vultures® LLC. "International buyers with strong foreign currencies deserve much of the credit for the strong sales velocity being experienced in South Florida. The unanswered question is whether the foreign buyers will continue to swarm South Florida given the economic dynamics now playing out in the Euro zone and key countries such as Brazil."   

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 boom, developers are already proposing 20 new condo projects with more than 4,000 units in each of the counties of South Florida, according to the Condo Vultures® Preconstruction Condo Projects list. 

As of Dec. 8, 2011, a pair of new condo towers have already formally initiated construction, according to a new CondoVultures.com report

Since the week of Oct. 20, 2011, CondoVultures.com has examined South Florida's second quarter residential condo trends in the seven largest coastal condo markets in the tricounty region of Miami-Dade, Broward, and Palm Beach. 

On a weekly basis, the Condo Vultures® Market Intelligence Report™ analyzed new condo sales and pricing in Greater Downtown Miami, South Beach, Sunny Isles Beach, Hollywood / Hallandale Beach, Downtown Fort Lauderdale and the Beach, Boca Raton / Deerfield Beach, and Downtown West Palm Beach and Palm Beach Island.   
 
To read the third quarter of 2011 new condo sales reports, please visit the Archives or the Market Intelligence Report™ section of CondoVultures.com. 

During the South Florida real estate boom, developers with bank financing created 148 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 68 projects with more than 10,000 units were created in two Broward County markets of Hollywood / Hallandale Beach and Downtown Fort Lauderdale and the Beach.
 
Developers created 28 projects with nearly 4,500 units in the two Palm Beach County markets of Boca Raton / Deerfield Beach and Downtown West Palm Beach and Palm Beach Island.   

In the four decades prior to the boom, developers created nearly 700 condominium projects with 76,500 units in the same seven coastal markets in South Florida, according to a comprehensive study undertaken for the Condo Vultures® Official Condo 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 nearly 22,250 units. At the end of the third quarter, less than 2,000 units remained under the control of the original developers, according to a recent report from CondoVultures.com.   
 
Sunny Isles Beach ranks second with nearly 6,400 new units created during the boom. As of Sept. 30, 2011, Sunny Isles Beach has about 675 unsold developer units, according to a recent 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 third quarter, South Beach has 1,000 unsold developer units, according to a recent report

Downtown Fort Lauderdale and the Beach narrowly claimed the No. 4 spot with nearly 5,100 new units added during the boom. As of Sept. 30, 2011, the Downtown Fort Lauderdale and the Beach market has less than 70 developer units unsold if the former Trump International Hotel & Tower - with 298 units and tied up in court - is excluded, according to the report.

The Hollywood / Hallandale Beach market ranks fifth with nearly 5,000 new units created since 2003. At the end of the third quarter of 2011, the Hollywood / Hallandale Beach market is statistically sold out with about five unsold developer units, according to the report. 
 
The Downtown West Palm Beach and Palm Beach Island market ranks sixth in South Florida based on more than 3,400 new units created during the boom. As of Sept. 30, 2011, the Downtown West Palm Beach and Palm Beach Island markets has nearly 650 unsold developer units, according to a recent 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. At the end of the third quarter of 2011, the Boca Raton / Deerfield Beach market had more than 350 units - about 34 percent of the total boom-era inventory for the market - unsold, according to a recent report
 
Condo Vultures® relied on public records and private research to complete this study over the course of the last three years.
 
The results of this exhaustive researching of deeds, condominium documents, and government files is the basis for a series of seven ebooks titled the Official Condo Buyers Guide™. The guides for Greater Downtown Miami, South Beach, and Sunny Isles Beach are already on available for purchase on Amazon.com.
 
This information is also the foundation for a new Condo Ratings Agency™ service designed to provide guidance on the financial stability of nearly 1,000 condo projects - old and new - with 125,000 units east of Interstate 95 in Miami-Dade, Broward, and Palm Beach counties.

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 at 1005 Kane Concourse, Suite 205, Bal Harbour, Florida, 33154. You can reach Condo Vultures® LLC 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 2011. Condo Vultures® LLC. All Rights Reserved.   


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