South Florida: 400 Condo Units Unsold In Sunny Isles Beach As Of Q2 2012 Published on 7/30/2012 8:32:03 PM
As Sunny Isles Beach developers forge ahead with plans for at least six new condo towers, more than 400 new condo units remain unsold from the last South Florida boom-and-bust cycle in the barrier island city in Northeast Miami-Dade County as of June 30, 2012, according to a new report from CondoVultures.com.
Developers sold nearly 70 new units for more than $39 million in Sunny Isles Beach between April and June of 2012, and in the process reduced the unsold boom-era inventory to six percent of the more than 6,300 units created since 2003 in this market, according to an analysis of Miami-Dade County records.
At the second quarter of 2012 sales pace, the Sunny Isles Beach could be sold out by the end of 2013 just as the newly proposed condo towers - such as the 400 Sunny Isles, Chateau Beach, Mansions at Acqualina, Porsche Design Tower, Regalia - are slated to be completed, according to an analysis of Miami-Dade County Property Appraiser Office records.
"Developers right now are focused acquiring developable land, launching presales, and ultimately constructing the next generation of new condo towers in Sunny Isles Beach," said Peter Zalewski, a principal with the Greater Downtown Miami-based real estate consultancy Condo Vultures® LLC. "Developers are being driven by their hunch that the unsold condos in Sunny Isles Beach from the most recent South Florida real estate crash should be absorbed within the next 18 months. The unknown is how currency, economic, and political situations abroad could impact the significant number of foreign buyers flooding the South Florida market looking for value and a safe haven for their investment dollars."
CondoVultures.com is scheduled to profile residential real estate trends in the second 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 July 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 second quarter of 2012 included nearly 30 sales at the Ocean Reserve condo conversion for more than $6.1.million and nearly 20 sales at the St. Tropez On The Bay project for nearly $14 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 more than 6,300 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 June 30, 2012, more than six condo towers have unsold developer units in the Sunny Isles Beach market, according to the report.
Overall, the South Florida condo boom has generated nearly $4.3 billion in developer sales of newly created units in Sunny Isles Beach as of June 30, 2012, according to the report.
Between 2003 and the second quarter of 2012, developers have sold nearly 5,925 condos with more than 9.6 million square feet of space, according to the report.
As of Aug. 1, 2012, nearly 270 Sunny Isles Beach units - created since 2003 - are on the resale market at a median asking price of more than $585 per square foot, according to an analysis by the licensed Florida real estate brokerage CVR Realty™.
In the second quarter of 2012, buyers purchased nearly 130 units - created since 2003 - on the resale market at a median price of less than $445 per square foot, according to data from the Florida Realtors association.
On the rental front, nearly 200 units created during the condo boom are available for lease at a median asking price of more than $3.10 per square foot per month as of Aug. 1, 2012, according to the report.
In the second quarter of 2012, renters leased about 50 units created during the condo boom at a median price of about $2.25 per square foot per month between April and June, 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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