Condo construction slows in south florida

Condo construction is slowing down in South Florida, reveal new statistics, as work on 30 buildings set to be completed in 2015 never finished.

Developers delivered just over 3,000 new condo units in projects in South Florida in 2015, according to CraneSpotters.com. However, that figure marks less than half of the amount planned.

At least 56 new condo buildings (containing more than 4,200 units) have been built in Miami-Dade, Broward and Palm Beach counties since 2011, but last year, almost 2,150 units originally set to be completed are now on course to complete in 2016.

"Given the changing real estate market conditions resulting from heightened competition for buyers, increased construction costs and rising presale prices, the future is unknown for about 1,200 new South Florida condo units that were originally scheduled to be completed last year but were never constructed as marketed," reports the Miami Herald.

"What is known is that developers are now scheduled to complete nearly 95 new condo buildings with more than 7,800 units in 2016," adds the Herald, including both the overhanging condos from 2015 and the 5,700 already in the pipeline for 2016.

The Herald notes that conditions are changing for developers, as preconstruction sales are reportedly declining. Indeed, the stronger dollar and the cooling economy are both impacting foreign demand. However, figures from the Miami Association of Realtors confirm that international remains strong, accounting for 36 per cent of the $6.1 billion of total sales volume in 2015.