425 New Condos Unsold In Greater Downtown Miami From Crash Of 2007 Published on 10/19/2013 5:46:00 PM
Some seven years after the South Florida condo crash first began in 2007, about 425 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 the third quarter of 2013, according to a new report from CondoVultures.com.
New condo sales in Greater Downtown Miami transacted at a pace of less than 25 units per month between July and September of 2013 compared to about 112 units per month in the same three-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 purchased more than 65 new units in Greater Downtown Miami for nearly $40.4 million - an average price of about $568 per square foot - between July and September of 2013 compared to an average price of about $501 per square foot in the same period in 2012, according to an analysis based on Miami-Dade County Clerk of the Court records.
"Less than two percent of the new condos created in Greater Downtown Miami during the last boom-and-bust cycle are unsold as of the third quarter of 2013," said Peter Zalewski, a principal with the Greater Downtown Miami-based real estate consultancy Condo Vultures® LLC. "At the 2013 average sales pace of more than 30 units per month, Greater Downtown Miami could be sold out of boom-era developer units in the fourth quarter of 2014. Going forward, the unknown is whether buyers will choose existing unsold developer condos from the last boom when more than 12,000 new units are currently proposed for the Greater Downtown Miami market."
CondoVultures.com is scheduled to profile condo trends in the third 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 October 14, 2013.
The Condo Vultures® Market Intelligence Report™ is scheduled to publish a 10-part weekly 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 third quarter of 2013 sale activity, buyers have purchased nearly 21,800 new units for about $8.45 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 18 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 October 18, 2013, at least 41 new condo towers with more than 12,100 units have been proposed for the Greater Downtown Miami market, according to the Preconstruction Condo Projects Database™.
Overall in South Florida, at least 172 new condo towers with nearly 22,600 units are proposed - with 40 towers under construction and three tower already completed - in the tricounty South Florida region of Miami-Dade, Broward, and Palm Beach, according to a recent CondoVultures.com report.
In the Greater Downtown Miami market, more than 1,350 condos - that were built and sold to individual buyers since 2003 - are currently on the resale market at an average asking price of about $510 per square foot as of October 19, 2013, 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 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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