6,800 New Condos From Boom Era Still Unsold In South Florida

 

MIAMI, FL---Nearly 6,800 condominium units - some 14 percent of the total new inventory - created near the coast in the tricounty South Florida region during the real estate boom are still not sold as of March 31, 2011, according to a new report from CondoVultures.com.

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™.

Developers created nearly 250 projects with 49,000 units since 2003 in the seven largest condo markets east of Interstate 95 in Miami-Dade, Broward, and Palm Beach counties during the boom.

In the four decades prior to the boom, developers created nearly 700 condominium projects with more than 76,500 units in the same seven coastal markets of Greater Downtown Miami (top left photo), South Beach, Sunny Isles Beach (top right photo), Downtown Fort Lauderdale and the Beach, Hollywood / Hallandale Beach, Downtown West Palm Beach (bottom left photo) and Palm Beach Island, and Boca Raton / Deerfield Beach (bottom right photo), according to a comprehensive study undertaken for the Condo Vultures® Official Condo Buyers Guide™ eBook series.

"At the current pace of about 200 new condo sales per month - or 600 units per quarter - in South Florida, the tricounty region has nearly three years of remaining inventory in Miami-Dade, Broward, and Palm Beach," said Peter Zalewski, a principal with the Bal Harbour, Fla.-based real estate consultancy Condo Vultures® LLC.

"Despite the new unit inventory overhang in South Florida's seven largest coastal markets, some developers are already taking steps to secure land and governmental approval to launch presales for new projects in the near future.

" It is unclear if prospective buyers will decide to purchase newly constructed units when nearly 49,000 condos were built during the boom that began in 2003." 

Peter Zalewski of Condo Vultures® can be reached at 800-750-0517 or by email at peter@condovultures.com