Select the search type
  • Site
  • Web
Search
Register   |  Login   |  Contact Us | About Us | Site Map
Become A Fan On The Condo Vultures Facebook PageFollow Us On The Condo Vultures Twitter PageWatch All Our Video Content on the Condo Vultures Youtube PagePeter Zalewski of Condo Vultures Linked InTake Our News To Go. Condo Vultures RSS Feeds. Society of Professional Journalists investigative reporters and editors
Return to Condo Vultures front page

2,900 New Condo Units Unsold From South Florida's Last Boom-Bust Cycle
2,900 New Condo Units Unsold From South Florida's Last Boom-Bust Cycle
Published on 12/3/2012 7:04:17 PM

Bookmark and Share


Less than six percent of the nearly 49,000 new coastal condo units created during the last South Florida real estate boom remain unsold in the seven largest coastal markets of Miami-Dade, Broward, and Palm Beach counties as of the fourth quarter of 2012, according to a new report from CondoVultures.com.

Between July and September of 2012, buyers paid more than $162 million - an average of about $440 per square foot - for nearly 300 condo units in projects built since 2003 east of Interstate 95 in the coastal markets of Greater Downtown MiamiSouth BeachSunny Isles BeachHollywood / Hallandale BeachDowntown Fort Lauderdale and the BeachBoca Raton / Deerfield Beach, and Downtown West Palm Beach and Palm Beach Island.  

The buying activity in the third quarter of 2012 reduced the number of unsold developer units to less than 3,050 condos as of Sept. 30, 2012, according to the report. 

The unsold developer inventory was further reduced to less than 2,900 units by a Nov. 5, 2012 bulk deal for the remaining 150 new residential units at an average price of $195 per square foot in the City Palms condo project in Downtown West Palm Beach, according to a recent CondoVultures.com report

"South Florida's last condo boom-and-bust cycle is on pace to sell out in the near future," said Peter Zalewski, a principal with the Greater Downtown Miami-based real estate consultancy Condo Vultures® LLC. "Cash buyers - led by foreign investors with strong international currencies and bulk buyers - have worked to reduce the inventory overhang in the South Florida coastal condo market quicker than many had anticipated at the beginning of the crash. Besides the discounted prices, one of the key factors propelling investors to acquire new condos has been the strengthening rental rates. 

"Several developer are so bullish on a full fledged recovery in South Florida that nearly 90 new condo towers - and counting - have been announced in Miami-Dade, Broward, and Palm Beach counties since the second quarter of 2011." 

With the third quarter of 2012 developer sales, buyers have now purchased nearly 45,725 condo units for more than $22.5 billion in South Florida's seven largest coast markets between 2003 and the third quarter of 2012, according to an analysis of Clerk of the Court records from Miami-DadeBroward, and Palm Beach counties. 

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 last boom, developers are proposing more than 13,300 new condo units in South Florida, according to the Proposed Condo Projects list compiled by the licensed Florida brokerage CVR Realty™

As of December 4, 2012, one new tower has already been completed in the tricounty region and 12 other highrises - Aventura's Bellini At Williams Island; Greater Downtown Miami's 1100 Millecento ResidencesBrickell Citicentre (two towers), BrickellHouse, and MyBrickell projects; Hollywood's Apogee Beach; Key Biscayne's Oceana (two towers); Palm Beach County's 4001 North Ocean project; and Sunny Isles Beach's Mansions At Acqualina and Regalia - are under construction as the post-crash development era gains momentum, according to a recent CondoVultures.com report.

Since the week of Oct. 15, 2012, the Condo Vultures® Market Intelligence Report™ has been publishing a seven-part series analyzing residential real estate trends in the third quarter of 2012 in the seven largest coastal condo markets in the tricounty South Florida region.

During the South Florida real estate boom, developers created more than 145 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 69 projects with nearly 10,200 units were created in two Broward County markets of Hollywood / Hallandale Beach and Downtown Fort Lauderdale and the Beach.

Developers created more than 25 projects with nearly 4,500 units in the two Palm Beach County markets of Boca Raton / Deerfield Beach and Downtown West Palm Beach / Palm Beach Island.   

In the four decades prior to the boom, developers created nearly 700 condominium projects with more than 76,000 units in the same seven coastal markets in South Florida, according to a comprehensive study undertaken for the report based on the Condo Vultures® 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 more than 22,200 units. At the end of the third quarter of 2012, nearly 1,050 units remained under the control of the original developers, according to a recent CondoVultures.com report.    

Sunny Isles Beach ranks second with more than 6,300 new units created during the boom. As of Sept. 30, 2012, Sunny Isles Beach has about 350 unsold developer units, according to a recent CondoVultures.com 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 of 2012, South Beach has more than 600 unsold developer units, according to a recent CondoVultures.com report

Downtown Fort Lauderdale and the Beach claimed the No. 4 spot with nearly 5,250 new units - including the newly created 171-unit Fort Lauderdale Residences also known as the W Fort Lauderdale - added during the boom. 

As of Sept. 30, 2012, the Downtown Fort Lauderdale and the Beach market has about 190 developer units unsold, according to a recent CondoVultures.com 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 2012, the Hollywood / Hallandale Beach market is statistically sold out with less than five unsold developer units, according to a recent CondoVultures.com report
 
The Downtown West Palm Beach / Palm Beach Island market ranks sixth in South Florida based with more than 3,400 new units created during the boom. As of Sept. 30, 2012, the Downtown West Palm Beach and Palm Beach Island markets had less than 540 unsold developer units before the City Palms bulk deal, according to a recent CondoVultures.com 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 2012, the Boca Raton / Deerfield Beach market has less than 300 units unsold, according to a recent CondoVultures.com 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.

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 2012. Condo Vultures® LLC. All Rights Reserved.   


print
CVR Realty - South Florida's Condo Experts
Condo Vultures® Realty - Distressed Property Experts
© Copyright 2014. Condo Vultures® LLC. All Rights Reserved.
Condo Vultures® LLC | 425 NE 22nd St. | Suite 409 | Miami | FL | 33137 | Phone: 800-750-0517 | Fax: 888-688-3415