10% Of New Condos Unsold In South Beach From Real Estate Crash Of 2007 Published on 2/13/2014 3:41:00 PM
As South Florida experiences another preconstruction condo boom with more than 190 towers proposed, about 550 new units remain unsold in the popular South Beach neighborhood of Miami Beach from the last real estate boom-and-bust cycle as of December 31, 2013, according to a new report from CondoVultures.com.
Buyers purchased about 50 new South Beach condos from developers for a combined $25.4 million between January and December of 2013 at an average price of about $580 per square foot, according to an analysis based on Miami-Dade County records.
As of December 31, 2013, the percentage of unsold developer units in the South Beach condo market represents about 10 percent of the nearly 5,600 units created since 2003, according to an analysis based on the Condo Vultures® Official Condo Buyers Guide To South Beach™.
"Despite selling an average of about one unit per week, developers in South Beach are reluctant to negotiate their prices for unsold new condos that were built during the last South Florida boom-and-bust cycle that began in 2003," said Peter Zalewski, a principal with the Greater Downtown Miami-based real estate consultancy Condo Vultures® LLC. "As a result, South Beach has one of the highest concentrations of unsold new condo units in South Florida from the last boom-and-bust cycle. Going forward, South Beach developers with existing boom-era inventory could increasingly be faced with added competition for buyers as more than 20 new condo towers with nearly 1,300 units have already been proposed for Miami Beach."
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.
South Beach is a 24-block long neighborhood in the barrier island city of Miami Beach that stretches from South Pointe Drive north to 24th Street, the Atlantic Ocean west to Biscayne Bay, according to the Condo Vultures® Official Condo Buyers Guide To South Beach™.
Developers created 37 projects with nearly 5,600 units in the South Beach neighborhood during the South Florida real estate boom beginning in 2003.
Prior to the real estate boom, South Beach - a historical district with a large number of Art Deco, low-rise structures - had 110 condo projects with 10,800 units.
As of December 31, 2013, buyers have purchased nearly 4,990 new condo units from the last real estate boom for about $3.48 billion, representing an average price of about $599 per square foot, according to the report.
In addition to the unsold developer units, more than 260 condos - created since 2003 - are on the resale market at an average asking price of about $1,356 per square foot in South Beach as of February 13, 2014, according to the licensed Florida brokerage CVR Realty™.
In the year 2013, buyers purchased less than 260 South Beach condo units - created since 2003 - on the resale market at an average price of nearly $955 per square foot, according to data from the Florida Realtors association.
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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