Monday, October 25, 2010

1,300 New Condo Units Remain Unsold In South Beach


 MIAMI, FL---Buyers purchased only 19 new South Beach condos in the third quarter of 2010, leaving more than 1,300 unsold developer units available as of Sept. 30, 2010 at the southern tip of the barrier island neighborhood located east of the Miami mainland, according to a new report from CondoVultures.com.

At the current pace of about six sales per month transacted between July and September of 2010, nearly 18 years of new condo inventory is currently available on the market in Miami Beach's famous 24-block long neighborhood, according to the report based on the Condo Vultures® Official Condo Buyers Guide To South Beach™.

 Despite the significant number of unsold developer units in South Beach, most Miami Beach developers have refused to slash prices dramatically to sell off their remaining condo product.

 In fact, buyers paid an average of more than $1,500 per square foot in the third quarter of 2010 for new units compared to $355 per square foot across Biscayne Bay in Greater Downtown Miami, according to the report based on Miami-Dade County records.

"South Beach is an international destination with world-class beaches, beautiful people, and a legendary nightlife that attracts visitors from around the world who are increasingly bringing strong foreign currencies," said Peter Zalewski (middle right photo), a principal with the Bal Harbour, Fla.-based real estate consultancy Condo Vultures® LLC.


 "Developers and lenders are well aware of South Beach's unique characteristics and future potential, and have therefore been unwilling to reduce the pricing significantly.

'The unanswered question is, whether the buyers or the developers and lenders will flinch first in hopes of transacting the deals necessary to clear the inventory." 

New condo sales and remaining inventory in South Beach is a topic that will be addressed by Miami-Dade County Property Appraiser Pedro J. Garcia at the upcoming Condo Vultures® seminar entitled "Property Tax Outlook Today, Future For Miami-Dade County" on Tuesday, Oct. 26, at the Miami Marriott Biscayne Bay in Miami.

Peter Zalewski of Condo Vultures® can be reached at 800-750-0517 or by email at peter@condovultures.com

No comments: