400 New Condos Unsold In Greater Downtown Miami From Crash Of 2007 Published on 1/31/2014 6:06:00 PM
Some seven years after the South Florida condo crash first began in 2007, less than 400 new units created in Greater Downtown Miami during the last real estate boom remain under the control of the original developers as of the end of 2013, according to a new report from CondoVultures.com.
New condo sales in Greater Downtown Miami transacted at a pace of nearly 26 units per month between January and December of 2013 compared to about 80 units per month in the same 12-month period in 2012, according to the report based on the Condo Vultures® Official Condo Buyers Guide To Miami™.
Even with the dramatically slower pace, buyers still purchased about 310 new units in Greater Downtown Miami for nearly $146.1 million - an average price of about $478 per square foot - between January and December of 2013 compared to an average price of about $407 per square foot in the same period in 2012, according to an analysis based on Miami-Dade County Clerk of the Court records.
"It has taken several years but developers finally seem to be on their way to selling out the overhang of condo inventory that was created during the previous real estate boom," said Peter Zalewski, a principal with the Greater Downtown Miami-based real estate consultancy Condo Vultures® LLC. "At the 2013 sales pace, Greater Downtown Miami could very well be sold out of boom-era developer units in the first half of 2015. The unknown question going forward is whether buyers will choose existing unsold developer condos from the last boom when more than 13,600 new units are currently proposed for the Greater Downtown Miami market."
CondoVultures.com is scheduled to profile condo trends in the fourth quarter of 2013 in the 10 largest coastal markets in the tricounty South Florida region of Miami-Dade, Broward, and Palm Beach counties beginning the week of January 22, 2014.
The Condo Vultures® Market Intelligence Report™ is scheduled to publish a 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.
Greater Downtown Miami is a 60-block stretch from the Julia Tuttle Causeway south to the Rickenbacker Causeway, and Interstate 95 east to Biscayne Bay. The market is comprised of the neighborhoods of the Brickell Avenue Area, Downtown Miami, and the Biscayne Boulevard Corridor, according to the Condo Vultures® Official Condo Buyers Guide To Miami™.
With the 2013 sale activity, buyers have purchased nearly 21,810 new units for about $8.46 billion and reduced the number of unsold units controlled by the original developers to less than two percent of the more than 22,200 condos created in Greater Downtown Miami during the boom, according to the new report based on an analysis of Miami-Dade County Property Appraiser data.
The remaining unsold developer units are situated in about 17 towers of the more than 80 condo buildings that were created in Greater Downtown Miami since 2003, according to the report.
Competition for buyers is intensifying in Greater Downtown Miami as bulk owners attempt to resell units at projects such as the Midtown Four and Vizcayne - formerly the Everglades on the Bay - for a premium and a flurry of recently announced new projects strive to catch the attention of buyers, according to the Preconstruction Condo Projects Database™ compiled by the licensed Florida brokerage CVR Realty™.
As of January 31, 2014, at least 47 new condo towers with more than 13,600 units have been proposed for the Greater Downtown Miami market, according to the Preconstruction Condo Projects Database™.
Overall in South Florida, at least 187 new condo towers with nearly 25,000 units are proposed - with 46 towers under construction and five towers already completed - in the tricounty South Florida region of Miami-Dade, Broward, and Palm Beach, according to a new CondoVultures.com report.
In the Greater Downtown Miami market, more than 1,525 condos - that were built and sold to individual buyers since 2003 - are currently on the resale market at an average asking price of about $505 per square foot as of January 31, 2014, according to an analysis based on Florida Realtors association data.
The condo resales do not reflect any deals that may have transacted without being marketed on the Multiple Listing Service.
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 425 NE 22nd St., Suite 409, Downtown Miami, Florida, 33137. Condo Vultures® LLC can be reached at 800-750-0517.
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