Bellini at Williams Island condos rendering, Aventura, FL
CondoVultures.com Reports Proposed Units Outnumber Available
Resales In South Florida
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| Peter Zalewski |
MIAMI, FL -- For the first time since at least 2008, South
Florida has more new condo units proposed than available for purchase on the
resale market in the tricounty region of Miami-Dade, Broward, and Palm Beach,
according to a new report from CondoVultures.com.
As of May 20, 2013, more than 18,500 new condos are proposed
- not all projects have yet begun presales - for South Florida compared to
18,400 units listed on the MLXchange in Miami-Dade, Broward, and Palm Beach
counties, according to research compiled by the licensed Florida real estate
brokerage CVR Realty™.
"South Florida has been faced with a glut of condo
resale inventory since the real estate crash of 2007," said Peter
Zalewski, a principal with the Greater Downtown Miami-based real estate
consultancy Condo Vultures® LLC.
1100 Millecento Residences, Miami, FL
"The recent
surge in newly proposed condo towers combined with the shrinking inventory of
resale units has flipped the direction of the South Florida condo market.
Unless something changes, condo buyers could increasingly be faced with stiff
competition for existing resale units and rising prices for condos in proposed
towers."
Brickell CityCenter condos rendering, Miami, FL
CondoVultures.com is scheduled to profile condo trends in
the first 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 April 15, 2013.
The Condo Vultures® Market Intelligence Report™ plans 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.
Brickell House rendering, Miami, FL
Of the more than 18,500 new condos proposed in South
Florida, developers have announced nearly 14,350 new condos in Miami-Dade
County, nearly 2,125 new units in Broward County, and nearly 2,100 new condos
in Palm Beach County, according to Preconstruction Condo Projects Database™
from CraneSpotters.com.
Habitat II condos rendering, Miami, FL
Compare this with the condo resale market where the
available inventory - including townhouses - breaks down with less than 7,500
units in Miami-Dade, more than 5,500 units in Broward, and about 5,400 units in
Palm Beach, according to the data.
Prices for the new condo units in South Florida start at
more than $400 per square foot compared to an average price of nearly $275 per
square foot for units on the resale market in Miami-Dade, Broward, and Palm
Beach, according to data from the Florida Realtors association.
ICON Bay condos rendering, Miami, FL
Overall, South Florida’s condos and townhouse resale
inventory has decreased in quantity by nearly 70% since the Thanksgiving
holiday week – the symbolic start of the busy winter tourism season - of 2008,
according to the data.
Nearly 61,000 condos and townhouses were on the resale
market in the tricounty South Florida region on Nov. 24, 2008 as financial uncertainty
reached an all-time high following the abrupt failure of the investment banking
behemoth Lehman Brothers that subsequently triggered a near meltdown of the
U.S. economy.
MyBrickell condos rendering
Miami, FL
Nearly five years later, the number of condos and townhouses
on the resale market in Miami-Dade, Broward, and Palm Beach counties has shrunk
by more than 42,500 units as of May 20, 2013,
according to the data.
Broward County has experienced the deepest drop in condo and
townhouse resales available on the market.
Beachwalk, Hallandale, FL
As of May 20, 2013, less than 5,550 condos and townhouses
are on the resale market in Broward County. Back in 2008, there were nearly
21,100 condos and townhouses for resale in Broward County.
In Miami-Dade County, there are less than 7,500 condos and
townhouses on the market as of May 20, 2013 compared to nearly 24,450 resales
available in 2008.
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| Apogee Beach condos, Hollywood, FL |
In Palm Beach County, about 5,400 condos and townhouses are
on the market as of May 20, 2013 compared to nearly 15,400 resale units
available in 2008.
Even though the U.S. economy continues to wobble along with
modest GDP growth and a high unemployment rate by modern standards, the number
of condos under contract in South Florida has spiked to nearly 13,000 - a large
chunk of which are all-cash deals - as of May 20, 2013, according to the
analysis based on Florida Realtors association data.
Oceana condos, Key Biscayne, FL
Back in 2008, the pending sales for condos and townhouses in
Miami-Dade, Broward, and Palm Beach counties totaled slightly more than 4,400
units.
As of May 20, 2013, Miami-Dade County – where Aventura,
Coral Gables, and South Beach are located – has nearly 6,500 pending contracts
alone.
4001 North Ocean condo project, Palm Beach, FL
Broward County – where Fort Lauderdale, Hollywood Beach, and
Pompano Beach are located – has nearly 4,600 pending sales.
Palm Beach County – where Boca Raton, Delray Beach, and West
Palm Beach are located – has nearly 1,900 pending sales.
Chateau Beach condos rendering, Sunny Isles Beach, FL
Several factors are impacting the changing South Florida
residential real estate climate, ranging from the foreclosure freeze that has
prompted some lenders to withdraw bank-owned properties from the resale market
to a flurry of international buyers with strong foreign currencies who are
attracted to the region's discounted property prices.
The reduction of South Florida condo resale inventory
combined with a steady absorption of new unit sales is increasingly showing
signs of another construction boom.
Mansions at Aqualina condos rendering, Sunny Isles Beach, FL
Some six years after the South Florida real estate crash
began in 2007, one new condo tower has already been completed in the tricounty
region and 20 other high-rises. They are:
Aventura's Bellini At Williams Island; Greater Downtown
Miami's 1100 Millecento Residences, Brickell Citycentre (two towers),
BrickellHouse, Habitat II, ICON Bay, and MyBrickell projects; Hallandale
Beach's Beachwalk; Hollywood's Apogee Beach; Key Biscayne's Oceana (two
towers);
Miami's 4300 Biscayne Boulevard in the Morningside area;
Miami Beach's Faena House Saxony and Residences At Miami Beach Edition; Palm
Beach County's 4001 North Ocean project; and Sunny Isles Beach's Chateau Beach,
Mansions At Acqualina, Porsche Design Tower, and Regalia - are under
construction as the post-crash development era gains momentum, according to a
new CondoVultures.com report.
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Regalia condos rendering, Sunny Isles Beach, FL |
Fueled by investors primarily from overseas, about 2,450 new
condo units remain unsold from a supply of nearly 49,000 units created since
2003 in South Florida’s 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 as of January 2013, according to a recent
CondoVultures.com report.
Faena House Saxony and Residences rendering
At Miami Beach Edition
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™.
A number of the newly proposed condo units are not expected
to be completed until 2014 when the unsold developer inventory from South
Florida's last real estate boom and bust is projected to be sold.
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.
4300 Biscayne Boulevard Condos rendering
Miami, FL
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.
For a complete copy of the company’s news release, please
contact:
Condo Vultures® LLC
225 Midtown Building
225 NE 34th St.
Suite 209B,
Downtown Miami, Florida, 33137.
PH: 1-800-750-0517.
