More than one-third of the 37 new South Beach condo projects created during the real estate boom still have nearly two thirds of their original 1,400-unit inventory unsold as of the end of June 2010, according to a new Condo Vultures® White Paper™.

Developers of 11 condominiums projects built since 2003 have failed to sell even 10 percent of their nearly 650 new units despite being located in the popular barrier island city of Miami Beach. A pair of other projects have sold between 10 percent and 40 percent of their original 750-unit inventory, according to the report based on the Condo Vultures® Official Condo Buyers Guide To South Beach™.

An additional five projects - including the Setai Resort and Residences and Continuum on South Beach North Tower - have as much as one-third of their original inventory still unsold as of the end of the second quarter of 2010, according to the Condo Vultures® Bulk Deals Database™.

"South Beach has more than 13 years of new condo inventory available at the current sales pace of 25 transactions per quarter," said Peter Zalewski, a principal in the Bal Harbour, Fla.-based real estate consultancy Condo Vultures® LLC. "Granted, the developers are selling at an average of $1,365 per square foot but there are more than 1,300 new units still unsold in South Beach. At some point, either the developer and/or the lender is going to run out of patience and act accordingly."