470 New Condos Still Unsold In Sunny Isles Beach As Of Q1 2012 Published on 4/30/2012 5:47:01 PM
New condo sales decreased by nine percent in the the barrier island city of Sunny Isles Beach in Northeast Miami-Dade County in the first quarter of 2012 on a year-over-year basis compared to the same January through March period of 2011, according to a new report from CondoVultures.com.
Developers sold less than 65 units for nearly $57 million in Sunny Isles Beach in the first three months of the 2012 compared to about 70 new units in for nearly $68 million in 2011, according to an analysis of Miami-Dade County records.
In the first quarter of 2010, buyers acquired more than 100 new units for more than $102 million, according to an analysis of Miami-Dade County Property Appraiser Office records.
"Buyers looking at the Sunny Isles Beach condo market have many factors to consider," said Peter Zalewski, a principal with the Greater Downtown Miami-based real estate consultancy Condo Vultures® LLC. "The Sunny Isles Beach condo market is changing as the amount of boom-era inventory decreases, prices for developer units increase, and a series of new luxury condo towers - five and counting - are proposed. The unknown is whether there are enough buyers - especially the international investors with strong foreign currencies that are propelling the Sunny Isles Beach market's recovery - to purchase the remaining unsold new condo units as well as the hundreds of new condo residences being proposed for the next three years."
CondoVultures.com is scheduled to profile residential real estate trends in the first quarter of 2012 in the seven largest coastal condo markets in the tricounty South Florida region of Miami-Dade, Broward, and Palm Beach counties.
Since the week of April 16, 2012, the Condo Vultures® Market Intelligence Report™ has been publishing a seven-part weekly series analyzing new condo sales trends 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.
Some of the Sunny Isles Beach transaction activity in the first quarter of 2012 included 16 sales at the St. Tropez On The Bay project for nearly $15 million, eight sales at the Ocean Reserve condo conversion for nearly $1.8 million, and four sales at the Jade Ocean for more than $4 million, according to the report.
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 nearly 6,350 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™.
As of March 31, 2012, about 470 new developer units - more than seven percent of the boom-era inventory - are unsold in Sunny Isles Beach, according to the report.
Overall, the South Florida condo boom has generated more than $4.2 billion in developer sales of newly created units in Sunny Isles Beach as of March 31, 2012.
Between 2003 and the first quarter of 2012, developers have sold more than 5,850 condos with more than 9.5 million square feet of space, according to the report.
At the current first quarter of 2012 sales pace of about 21 new condos per month, the unsold developer units in Sunny Isles Beach would be absorbed in the first quarter of 2014. At the end of the 2011, Sunny Isles Beach was on pace to sell out in the first quarter of 2013, according to the report.
As of May 1, 2012, nearly 300 Sunny Isles Beach units - created since 2003 - are on the resale market at a median asking price of more than $565 per square foot, according to an analysis by the licensed Florida real estate brokerage CVR Realty™.
Units on the resale market range in price from about $250 per square foot to more than $1,675 per square foot, according to data from the Florida Realtors association.
On the rental front, more than 140 units created during the condo boom are available for lease at a median asking price of more than $2.90 per square foot per month as of May 1, 2012, according to the report.
In the first quarter of 2012, renters leased about 55 units created during the condo boom at a median price of nearly $2.20 per square foot per month between January and March, according to the data.
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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