Condo market booms in south florida

Photo credit: Miamism

49,000 condo units were left unsold following the last construction boom, but now less than 1,780 new condos are still on the market, according to CondoVultures.com.

Indeed, buying activity was at a pace of 50 per month in the third quarter of 2013, taking the number of unsold units to 1,775.

"Developers in South Florida are still in possession of about four percent of the condo units created during the last boom-and-bust cycle that began in 2003," said Peter Zalewski, a principal with the Greater Downtown Miami-based real estate consultancy.

"At the current 2013 sales pace of more than 75 transactions monthly between January and September, the unsold developer units from the last South Florida condo boom-and-bust cycle should be absorbed in about 23 months."

The unanswered question, notes Condo Vultures, is what effect the proposed developments will have upon the existing inventory. Indeed, there are now 183 new condo towers proposed, or under construction, in South Florida, with a total of over 24,800 units.

Four new condo projects have already been completed in the tricounty area and another 45 buildings are being built.

During the last construction craze, Greater Downtown Miami was the neighbourhood with the most number of condos created, with over 22,200 units brought to the market. Only 426 of those are still under the control of the original developers, as of the end of December 2013.

"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," notes the report.

Now, though, as supply is gradually snapped up, developers are beginning to step up activity in 2014. The construction boom in South Florida looks ready to heat up once again.