What if the year 2015 had been the pivotal moment for South Florida of this preconstruction boom?
As it enters the 5th year of the current real estate cycle, certain observations have taken hold in 2015 thus influencing the duration of that condo boom happening in between Palm Beach, Broward and Miami-Dade.
Because of the weakening of foreign currencies against the U.S. D. and a global slowdown of the economy, South Florida’s financial safety measures have eroded over 2015. These were aiming at reducing risk for preconstruction condo developers. Indeed, in an area where 50,000 new units have been built over the past 5 years, competition prompts various strategies to attract buyers:
- Some developers relaxed the 50% presale buyer deposits when broker commissions reach 10%
- Condo construction financing from private lenders is flowing
- Faena House is in the bull eye of Wall Street Risk-Takers
- China might bolster South Florida’s condo market
- Downtown Miami offers 11 year of supply of new condos
- The peak could trigger market anxiety
- The condo boom heads north
Following the unprecedented boom-bust of volatility South Florida experienced between 2003 and 2010, all counterparts – investors, lenders and developers are becoming anxious about Miami-Dade, Broward and Palm Beach’s level of preconstruction activity. As of now, almost 60 new towers have risen to the sky and 125 condo buildings are currently under construction.
In the aftermath of South Florida’s volatile boom-bust period from 2003 to 2010, developers, lenders and investors alike are noticeably anxious about the tri-county’s current level of preconstruction activity with nearly 60 new condo buildings that have already been completed and an additional 125 towers currently under construction.
One question remains: has 2015 been the peak of South Florida’s preconstruction condo market or just another milestone reached during this current real estate cycle?
February 22, 2016 at 8:43 am
I personally believe that the developments on the real estate market in Florida during the past year have been very favorable to the average investor. The American population is ageing, there are more and more people entering retirement age now, and those are the main group of people who are interested in condo purchases. Last year I invested in the Sabbia Beach Condos project in Pompano Beach, FL, you may have heard about this one. The building will look phenomenal when it is done and it has taken off pretty well since, a large portion of the units are already sold and there are also many prospective buyers to be found.