Final Push: 850 New Condos Unsold In Greater Downtown Miami As Of 2012

Peter Zalewski

Some six years after the South Florida condo crash first began in 2007, about 850 new units created in Greater Downtown Miami during the last real estate boom remain under the control of the original developers as of the fourth quarter of 2012, according to a new report from CondoVultures.com.

New condo sales in Greater Downtown Miami transacted at a pace of about 67 units per month between January and December of 2012 compared to about 145 units per month in the same period in 2011, according to the report based on the Condo Vultures® Official Condo Buyers Guide To Miami™. 

Even with the slower pace, buyers purchased more than 800 new units in Greater Downtown Miami for nearly $345 million - an average price of about $375 per square foot - between January and December of 2012, according to an analysis based on Miami-Dade County Clerk of the Court records.

A contributing factor in the reduced new condo sales pace is the weakening foreign currencies of some key countries from which international buyers are active in South Florida, including Argentina (-12%) and Brazil (-9%) on a year-over-year basis as of Dec. 31, 2012, according to the currency exchange website OANDA.com. 

"Greater Downtown Miami's new condo oversupply is on pace to sell out by the first quarter of 2014," said Peter Zalewski, a principal with the Greater Downtown Miami-based real estate consultancy Condo Vultures® LLC.

"Credit for the turnaround in Greater Downtown Miami's condo market should be given primarily to foreign buyers who have flooded into South Florida to purchase condo units at discounted prices.

“Several additional factors have also contributed to foreign investment in Greater Downtown Miami condos including the desire for wealth preservation, strong exchange rates, and strengthening rental rates."

For a complete copy of the company’s news release, please contact:

Condo Vultures® LLC  at 800-750-0517.