565 New Condos Unsold In South Beach From Real Estate Crash Of 2007 Published on 10/27/2013 12:09:00 PM
As developers stand firm on their increasingly rich asking prices, nearly 565 new condos remain unsold in the popular South Beach neighborhood of Miami Beach from the last South Florida real estate boom-and-bust cycle as of September 30, 2013, according to a new report from CondoVultures.com.
Buyers purchased less than 20 new South Beach condos from developers for a combined $8.9 million between July and September of 2013 at an average price of nearly $750 per square foot, according to an analysis based on Miami-Dade County records.
As of September 30, 2013, the percentage of unsold developer units in the South Beach condo market is stuck at about 11 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™.
"The South Beach market has the distinction of having the greatest number of unsold developer condos from the last South Florida real estate boom-and-bust cycle," said Peter Zalewski, a principal with the Greater Downtown Miami-based real estate consultancy Condo Vultures® LLC. "Unlike other markets such as Greater Downtown Miami where builders slashed prices to sell unsold condos, the developers in the South Beach market have not only refused to discount prices but are actually attempting to raise prices. Going forward, South Beach developers with unsold boom-era inventory could increasingly be faced with added competition for buyers as nearly 175 new condo towers with more than 22,500 units have already been proposed for the South Florida coastal region."
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.
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 September 30, 2013, buyers have purchased nearly 4,975 new condo units from the last real estate boom for about $3.48 billion, representing an average price of about $601 per square foot, according to the report.
In addition to the unsold developer units, nearly 225 condos - created since 2003 - are on the resale market at an average asking price of about $1,440 per square foot in South Beach as of October 23, 2013, according to the licensed Florida brokerage CVR Realty™.
In the third quarter of 2013, buyers purchased less than 70 South Beach condo units - created since 2003 - on the resale market at an average price of nearly $890 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 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™.
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