Research by Condo Vultures® has concluded that from 1963 to 2002, developers constructed 11,500 condominium units in the Greater Downtown Miami area from the Rickenbacker Causeway north to the Julia Tuttle Causeway, from I-95 east to Biscayne Bay.
Since 2003, developers are poised to construct 22,737 new units through 2010 when the final tower is scheduled to be completed, according to the Official Condo Buyers Guide™. About 19,000 new units have already been completed with an additional 3,000 units coming online this year. The remaining units will be delivered in 2009 and 2010.
“The good news for buyers is that 22,000 new units are hitting the market, which will create purchasing opportunities,” said Peter Zalewski, a principal with the Bal Harbour, Fla.-based consultancy Condo Vultures®, LLC. “The bad news for buyers is the new inventory is only 22,000 new units, not the 40,000 to 80,000 units that were at one time planned.”
After nearly five months of research, Condo Vultures® determined that nearly 50 condominium towers that were at one time proposed will end up not being built. If the typical tower were to average about 400 units, the cancellation of these 50 proposed projects means that as many as 20,000 additional new units will not be built for several years if ever.
The condo construction that did occur since 2003 will generate about 24.7 million gross livable square feet to push the overall total new residential space in Greater Downtown Miami to nearly 39 million square feet, according to the Guide.
With condo construction costs (excluding land) averaging about $250 per square foot, developers will have spent about $6.2 billion putting up the new residential inventory in Greater Downtown Miami.
In terms of total dollars generated by condo sales,in Greater Downtown Miami, developers sold most units for a price between about $350 to $450 per square foot. At an average cost of $400 per square foot, buyers committed to pay some $9.9 billion for the new inventory. Buyers typically were required to put down 20 percent deposits to secure units, which means some $1.98 billion in earnest money was placed as escrow deposits to secure the units.
Real estate licensees who represented the buyers of these condo units typically earned a 3 percent commission, which translates into about $296 million in commission. This total excludes the fees earned by Realtors working in-house for the developers.
On a neighborhood basis, when all of the new units are finally delivered the Brickell Avenue area (the Rickenbacker Causeway to the Miami River) will account for about 55 percent of the total condo inventory in Greater Downtown Miami. The Downtown Miami area (the Miami River north to the MacArthur Causeway) will represent about 23 percent of the total inventory, and the Biscayne Boulevard Corridor (the MacArthur Causeway to the Julia Tuttle Causeway) will account for the remaining 22 percent of the units, according to the Guide.
Condo Vultures® Deep Discounts of the Week
Here is a list of some of the biggest discounts in the Vultures Database™ on coastal properties in Miami-Dade, Broward, and Palm Beach counties:
Miami-Dade County:
Brickell Avenue Area: The price of a condominium unit in a waterfront building in the Brickell Avenue area has been reduced by -30 percent.
Miami: The owner of a single-family house in Miami has slashed the price to $56 per square foot.
Miami Beach: A condominium unit in a waterfront building in Miami Beach has been cut in price to $130 per square foot.
Coconut Grove: The price of a single-family house in Coconut Grove has been reduced by -68 percent.
Sunny Isles Beach: The price of a condominium unit in Sunny Isles Beach has been cut by -58 percent.
Aventura: A one-bedroom condominium unit in a waterfront building in Aventura has been reduced in price to $127 per square foot.
Coral Gables: A one-bedroom condo in Coral Gables has been reduced in price to $169 per square foot.
Broward County:
Fort Lauderdale: The price of a two-bedroom condominium unit in Fort Lauderdale has been slashed in price by -60 percent.
Hollywood/Hallandale Beach: The price of a one-bedroom condominium in Hallandale Beach has been reduced to $129 per square foot.
Pompano Beach: A two-bedroom condominium in Pompano Beach has been cut in price to $140 per square foot.
Palm Beach County:
West Palm Beach: A West Palm Beach house has been reduced in price to $58 per square foot.
Boca Raton/Boynton Beach: A two-bedroom unit in a waterfront condominium in Boca Raton has been reduced in price to $74 per square foot.
To get more information on these properties, please don’t hesitate to contact Condo Vultures® Realty LLC at 305-865-5629 or by email at inquiry@condovultures.com
Peter Zalewski is a principal with the consulting company Condo Vultures®LLC and a licensed real estate broker with Condo Vultures® Realty LLC. Peter can be reached at 305-865-5629 or by email at peter@condovultures.com. Be sure to check out Peter’s blog at CondoDump.com. Don't forget to sign up for our weekly Market Intelligence Report
Copyright © 2008, Condo Vultures® LLC
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