By Sunny Isles Real Estate Expert on March 13th, 2012
When talking about “booms” in any sort of market or industry, we are usually trying to illustrate some sort of massive growth in production or sales. When we discuss Fort Lauderdale real estate or Miami Beach real estate we are talking about condominium projects constructed between 1999 and 2009.
After that period, there was a downturn in the economy (and particularly in the housing industry) and much of the purchasing and construction slowed substantially. Things have started to rapidly change, however, and recent data indicates some very surprising results. For example, of the 5,135 condos constructed in Ft. Lauderdale during the boom years, only roughly 140 remain available as of February 2012. This represents only 2.7% of all of the units built.
This means that Ft. Lauderdale has surpassed the Miami market, which is most often viewed as the “hottest” in terms of sales.
Currently, the Miami and Brickell areas have around ten to fifteen percent of their “boom” units unsold – which also seems a bit unprecedented when thinking of the modern economic conditions.
What is behind this? In all areas, there is a tremendous amount of interest from Canadian and Latin American buyers. Their housing prices run at much larger figures than those of the Miami area, and without all of the benefits that come from a property in a dynamic region. Consider that condominiums in Ft. Lauderdale, Miami or Brickell can make ideal retirement, vacation or rental properties.
Thus, international buyers used to high “price per square foot” figures or substantial rental amounts are more than happy to get into the current Miami area markets. Consider that the current average price per square foot for a Miami condominium (whether pre-existing or in preconstruction) is going to be around $400 per square foot. This is a huge difference between the $1,000 per square foot being demanded in locations such as Rio de Janeiro, Bogota, Buenos Aires or Toronto.
A recent article in the “New York Post” pointed out that it is the top of the line condominiums selling at the $1,000 per square foot prices and that the traditionally upscale projects are now at this remarkable $400 average. This is a tremendous value to international buyers who are looking for a new home, a second home, or some fabulous income properties that are also seeing increasing rates. For example, rentals have risen by seven percent in the last year alone.
This all speaks well for the condominium market throughout this entire region.