MIAMI, FL -- More than 500 preconstruction contracts and reservations have been entered into at six newly proposed condo towers in the tricounty South Florida region as of Dec. 20, 2011, according to a new report from CondoVultures.com.
The preconstruction purchase commitments represent at least 46 percent of the 1,150 proposed units currently being marketed for presales in Miami-Dade, Broward, and Palm Beach counties, according to a new survey of planned developments conducted by the licensed Florida real estate brokerage CVR Realty™.
"Buyer demand for the newly proposed condo towers appears to be stronger than most people would probably think given today's economic climate and remaining unsold developer inventory from the last South Florida real estate boom," said licensed real estate broker Jenny Huertas (lower right photo), whose CVR Realty™ team plans to conduct the South Florida presale survey on a regular basis.
"Our survey suggests that every proposed project is currently selling at prices between $300 and $440 per square foot."
The presale results are based on a December telephone and email survey of developers and/or their exclusive sales representatives for each respective project. Every effort was taken to ensure the accuracy of data but the figures cannot be guaranteed or warranted as preconstruction contracts are not typically recorded with any government entity for public review.
On a project-by-project basis, leading the way in presales is the proposed 96-unit 23 Biscayne Bay tower – which began construction in June 2011 - in the Biscayne Boulevard Corridor of Greater Downtown Miami that has presold 100 percent of the planned units, according to the survey.
The proposed 192-unit MyBrickell tower (top left photo) in the Brickell Avenue Area of Greater Downtown Miami has presold more than 70 percent of the planned units, according to the survey.
The proposed 49-unit Apogee Beach tower (top right photo) – which began construction in December 2011 - in the city of Hollywood in Southeast Broward County has presold more than 61 percent of the planned units, according to the survey.
The proposed 369-unit Sky Palace At Mary Brickell Village (middle left photo) project in the Brickell Avenue Area of Greater Downtown Miami has presold some 51 percent of the planned units, according to the survey.
The proposed 374-unit BrickellHouse tower (middle right photo) in the Brickell Avenue Area of Greater Downtown Miami has presold some 21 percent of the planned units, according to the survey.
The proposed 70-unit Bellini At Williams Island tower (lower left photo– which began construction in December 2011 - in the city of Aventura in Northeast Miami-Dade County declined to provide presale figures, according to the survey.
An additional 14 projects with more than 3,000 units have been proposed for the South Florida area but have not yet begun presales, according to the report.
Fueled by a surge in cash buyers from overseas and prospects of Las Vegas-style casinos being permitted in South Florida, developers are proposing a combined 20 new towers in Miami-Dade, Broward, and Palm Beach counties with 10 projects in Greater Downtown Miami, four towers in Sunny Isles Beach, two towers in Miami Beach, two towers in West Palm Beach, and one tower each in Hollywood and Aventura, according to the CondoVultures.com Preconstruction Condo Projects list.
Developers are proceeding with new construction projects despite the existence of about 4,700 units that remain unsold from the last real estate boom as of Sept. 30, 2011, according to a recent CondoVultures.com report.
It is unclear how many of the proposed towers could get developed in the short term as construction financing is challenging - and expensive - to secure, industry watchers said.
To overcome the financing hurdle, most of the newly proposed projects are requiring prospective buyers to commit to deposits - to be paid in phases - of as much as 80 percent of the preconstruction contract price, industry watchers said.
During the most recent South Florida condo boom, preconstruction buyers were generally asked for deposits of about 20 percent, industry watchers said.
The most recent South Florida condo boom produced nearly 49,000 units in the seven largest coastal markets of 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, according to an analysis based on the Condo Vultures® Official Condo Buyers Guide™ eBook series.
Condo Vultures® LLC is a real estate consultancy and marketing company based at 1005 Kane Concourse, Suite 205, Bal Harbour, Florida, 33154. You can reach Condo Vultures® LLC at 800-750-0517.
