New Condo Sales Slow In Greater Downtown Miami In Q3 2010

MIAMI, FL--New condo sales in Greater Downtown Miami slowed in the third quarter of 2010 as developers sold only 425 units, the fewest number of transactions in a July-to-September period since 2005, according to a new report from CondoVultures.com.

As part of the 425 units to change owners in the third quarter, a chunk of 155 condos with some 150,000 square feet in the Plaza at Brickell (top left photo) reverted back to the development partners at a nominal recording fee.

 The other 270 units with 300,000 square feet to transact in the third quarter generated $108.6 million in sales, according to the report based on the Condo Vultures® Official Condo Buyers Guide To Miami™.

In previous third quarters, developers sold 823 units for $223 million in 2009, 1,599 units for $667 million in 2008, 628 units for $253 million in 2007, and 503 units for $158 million in 2006. In 2005 as several new towers were beginning construction, developers sold a total of 308 units for $139 million, according to the report created using Miami-Dade County records.

"Only about 20 percent of the nearly 22,250 new condo units constructed in Greater Downtown Miami during the last boom remain unsold as of Sept. 30, 2010, compared to 36 percent unsold a year ago," said Peter Zalewski (middle right photo), a principal with the Bal Harbour, Fla.-based real estate consultancy Condo Vultures® LLC.

 "Deep discounts for new condos in Greater Downtown Miami are still available but becoming more challenging to locate as the lowest - priced units are being sold to individual and bulk buyers or reverting back to the construction lenders.

“Many market watchers are likely to be surprised at the rate at which the new condos have transacted in the last 18 months in Greater Downtown Miami, the epicenter of the Florida condo crash.

"The unknown going forward is how many more quarters it will take to sell the remaining developer inventory in Greater Downtown Miami given that several units are on the larger side and financing can still be a challenge."

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