All the big names are doing one thing: they throw lavish parties. A condo project typically needs to sell 50 to 60% of their inventory before being able secure construction fundings from banks. This is probably why they are doing everything they need to attract buyers. This is especially so when bank loans has dried up for new upcoming projects.
For example, Missoni Baia condo celebrated its groundbreaking by inviting two performers to hover 12 feet above water while playing jazz tune on a saxophone. Aston Martin Residences on the other hand had a DJ, a mini-marching band topped with fireworks and confetti to celebrate its groundbreaking. Did the pricey celebrations work? Yes, it did. The Aston Martin Residences sold 25% of its units at that time. Another pre-construction project, the Monad Terrace condo sold couple of units more after their crane ceremonial broke ground.
The reasoning behind this big ceremonial price tag is to make sure buyers are confident in the projects and to inculcate confidence for lenders. There is a big concern among buyers to put the 30% deposit down especially when the future of the project is somewhat cloudy. Miami’s real estate is also famed for its booms and busts which obviously does not help. Furthermore, projects that are already under constructions are seeing low sales and there is a 53 month supply of luxury condos currently in the market. Another way for developers to fund their project is through their silent partners. The Regalia condo in Sunny Isles did just that and in 2017, 5 condos in the building were sold each above $8.5 million.