Developers are betting on a monumental comeback of the South Florida condo market by asking a median presale price of $725 per square foot for the thousands of preconstruction units currently proposed for the tricounty coastal region of Miami-Dade, Broward, and Palm Beach some seven years after the dramatic real estate downturn of 2007, according to a new report from CondoVultures.com.
Preconstruction condo prices in South Florida range from less than $250 per square foot to nearly $2,650 per square foot with a mean price of $960 per square foot, according to a new survey of the nearly 50 projects that are currently preselling units.
On a county-by-county basis, the mean price for a preconstruction condo is more than $1,060 per square foot in Miami-Dade, nearly $575 per square foot in Palm Beach, and less than $500 per square foot in Broward, according to the report.
A list of the preconstruction condo project prices will be distributed during a lunch presentation by real estate consultant Peter Zalewski of Condo Vultures® LLC on July 30, 2013 in Greater Downtown Miami. The event – but not the research – is sponsored by the mckafka Development Group, which is building the proposed Crimson Residences On Biscayne Bay condo tower in Downtown Miami’s Edgewater neighborhood. (For information on attending the luncheon, call 305-377-3337 or send an email to Crimson@Baker-CVR.com.)
For this preconstruction pricing report, researchers surveyed every proposed condo tower that is currently in the presale process to obtain the average asking price for units at their respective projects.
For proposed condo projects in which the developers refused to provide current prices, the researchers relied on active listings in the Southeast Florida MLXchange and/or promotional materials distributed within the last 30 days from the exclusive listing brokers of each respective projects.
Overall in South Florida, developers are now proposing at least 146 new condo towers with nearly 20,000 units for the tricounty region of coastal Miami-Dade, Broward, and Palm Beach as of July 27, 2013, according to the Cranespotters.com 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, one new condo tower has already been completed in the tricounty region and 24 other highrises – 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 and Costa Hollywood (two towers); Key Biscayne’s Oceana (two towers); Miami’s Baltus House in the Morningside area and Grove At Grand Bay (two towers) in the Coconut Grove are ; 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 CondoVultures.com report.
The push for new condo construction comes as the boom-era unit inventory is dwindling in South Florida.
Overall in South Florida, less than 2,150 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 March 31, 2013, according to a recent CondoVultures.com report.
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.
CondoVultures.com is scheduled to profile condo trends in the second 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 July 15, 2013.
The Condo Vultures® Market Intelligence Report™ is scheduled 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.
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.
Don’t forget to sign up for our weekly Market Intelligence Report™ for detailed condo reports to stay informed on the latest market trends and to find out about our various Condo Vultures® Seminars. Looking for a property at a deep discount? Take a peek at the Vultures Database™ or view our Video Library. Looking for bulk projects direct from developers or lenders? Visit the Condo Vultures® Bulk Deals Database™. Our new books, the Official Condo Buyers Guide to Miami™, Official Condo Buyers Guide To South Beach™, Official Condo Buyers Guide to Sunny Isles Beach™, Official Condo Buyers Guide to Downtown Fort Lauderdale and the Beach™, Official Condo Buyers Guide to Hollywood / Hallandale Beach™, Official Condo Buyers Guide to Downtown West Palm Beach™, and Official Condo Buyers Guide to Boca Raton / Deerfield Beach™, are now available. Want to see every foreclosure filed in South Florida since 2007? Check out our Foreclosure Database™.
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