Less than 1,780 new condos from a pool of nearly 49,000 units created during the last South Florida real estate boom are unsold in the seven largest coastal markets of Miami-Dade, Broward, and Palm Beach counties as of the third quarter of 2013, according to a new report from CondoVultures.com.
Between July and September of 2013, buyers paid nearly $84.7 million – an average of about $470 per square foot – for almost 150 condo units in projects built since 2003 east of Interstate 95 in the 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 a report based on the Condo Vultures® Official Condo Buyers Guide™ eBook series.
The buying activity – at a pace of nearly 50 new condos monthly – in the third quarter of this year reduced the number of unsold developer units to more than 1,775 condos as of September 30, 2013, according to the report.
“Developers in South Florida are still in possession of about four percent of the condo units created during the last boom-and-bust cycle that began in 2003,” said Peter Zalewski, a principal with the Greater Downtown Miami-based real estate consultancy Condo Vultures® LLC. “At the current 2013 sales pace of more than 75 transactions monthly between January and September, the unsold developer units from the last South Florida condo boom-and-bust cycle should be absorbed in about 23 months. The unanswered question is what impact the more than 180 preconstruction condo towers proposed – or under construction – in South Florida will ultimately have on the unit inventory from the last real estate boom.”
Since the week of October 14, 2013, CondoVultures.com has been profiling condo trends in the third quarter of 2013 in the 10 largest coastal markets in the tricounty South Florida region of Miami-Dade, Broward, and Palm Beach counties.
The Condo Vultures® Market Intelligence Report™ has published a 10-part weekly series that analyzed 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.
With the third quarter of 2013 developer sales, buyers have now purchased nearly 46,985 condo units for nearly $23.1 billion in South Florida’s seven largest coast markets between 2003 and September of 2013, according to an analysis of Clerk of the Court records from Miami-Dade, Broward, and Palm Beach counties.
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™.
In anticipation of the eventual sellout of the new condos created during the last boom, developers are proposing at least 183 new condo towers with more than 24,800 units in the South Florida coastal market as of December 30, 2013, according to the Preconstruction Condo Projects Database™ compiled by the licensed Florida brokerage CVR Realty™.
Some six years after the South Florida real estate crash began in 2007, four new condo projects (in order) – 23 Biscayne Bay, 4001 North Ocean, Apogee Beach, and Bellini Williams Island – have already been completed in the tricounty region and 45 other buildings – Aventura’s Echo Aventura (two towers), and Marina Palms Yacht Club & Residences (one tower); Bal Harbour’s Oceana Bal Harbour; Fort Lauderdale’s Adagio Residences; Greater Downtown Miami’s 1100 Millecento Residences, Bay House, Bond At Brickell, Brickell Citycentre (two towers), BrickellHouse, Centro, Habitat II, ICON Bay, MyBrickell, Nine At Mary Brickell Village projects; Hallandale Beach’s Beachwalk; Hollywood’s Costa Hollywood (two towers), H3,Positano Beach; Sage Beach (two towers); Key Biscayne’s 101 Key Biscayne and Oceana (two towers); Miami’s Baltus House in the Morningside area and Grove At Grand Bay (two towers) in Coconut Grove; Miami Beach’s 321 Ocean Drive (two towers), Faena House, Glass, Marea South Beach, One Ocean (two towers), Peloro Miami Beach, and Residences At Miami Beach Edition; and Sunny Isles Beach’s 400 Sunny Isles (two towers), Chateau Beach, Jade Signature, Mansions At Acqualina, Porsche Design Tower, and Regalia – are under construction as the post-crash development era gains momentum, according to a recent CondoVultures.com report.
During the South Florida real estate boom, developers created more than 145 projects with more than 34,000 units in the three Miami-Dade County markets of Greater Downtown Miami, South Beach, and Sunny Isles Beach.
An additional 69 projects with nearly 10,200 units were created in two Broward County markets of Hollywood / Hallandale Beach and Downtown Fort Lauderdale and the Beach.
Developers created more than 25 projects with nearly 4,500 units in the two Palm Beach County markets of Boca Raton / Deerfield Beach and Downtown West Palm Beach / Palm Beach Island.
In the four decades prior to the boom, developers created nearly 700 condominium projects with more than 76,000 units in the same seven coastal markets in South Florida, according to a comprehensive study undertaken for the report based on the Condo Vultures® Buyers Guide™ eBook series.
On a market-by-market basis, Greater Downtown Miami has the distinction of being the single neighborhood with the greatest number of new condos created during the boom with more than 22,200 units. At the end of the third quarter of 2013, about 426 units remained under the control of the original developers, according to a recent CondoVultures.com report.
Sunny Isles Beach ranks second with more than 6,300 new units created during the boom. As of September 30, 2013, Sunny Isles Beach has less than 225 unsold developer units, according to a recent CondoVultures.com report.
The popular South Beach neighborhood of Miami Beach ranks third with nearly 5,600 new units created since 2003. At the end of the third quarter of 2013, South Beach has nearly 565 unsold developer units, according to a recent CondoVultures.com report.
Downtown Fort Lauderdale and the Beach claimed the No. 4 spot with nearly 5,250 new units – including the newly created 171-unit Fort Lauderdale Residences also known as the W Fort Lauderdale – added during the boom.
As of September 30, 2013, the Downtown Fort Lauderdale and the Beach market has less than 190 developer units unsold but that could change instantaneously as the remaining developer units in the W Fort Lauderedale project are being marketed for a bulk deal, according to a recent CondoVultures.com report.
The Hollywood / Hallandale Beach market ranks fifth with nearly 5,000 new units created since 2003. At the end of the second quarter of 2013, the Hollywood / Hallandale Beach market was sold out, according to a recent CondoVultures.com report.
The Downtown West Palm Beach / Palm Beach Island market ranks sixth in South Florida with more than 3,400 new units created during the boom. As of September 30, 2013, the Downtown West Palm Beach and Palm Beach Island markets had less than 115 unsold developer units, according to a new CondoVultures.com report.
At the bottom of the list with the fewest number of new units created is the Boca Raton / Deerfield Beach market, where less than 1,050 condos were added during the boom in coastal South Florida. At the end of the third quarter of 2013, the Boca Raton / Deerfield Beach market has more than 260 units unsold, according to a recent CondoVultures.com report.
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.
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.
Condo Vultures® LLC is a real estate consultancy and marketing company based in the 225 Midtown Building at 225 NE 34th St., Suite 209B, Downtown Miami, Florida, 33137. Condo Vultures® LLC can be reached at 800-750-0517.
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