There are some interesting trends developing in the condominium markets in and around Miami. For example, there has been a surge in growth throughout the entire “preconstruction” markets of Miami and Brickell. There has also been news of increases in the average purchase prices – with the figure hitting over $1 million in early 2012. There is also a lot of talk about the shrinking pool of available properties, with somewhere in the area of fourteen percent or less of the “boom” era condominiums remaining available.
When you roll all of these facts into the additional issue of increasing interest from international buyers, you can see that there is certainly a pending or developing shortage of homes for sale in Miami area. This is one of the primary reasons that a sudden amount of interest has developed just over the county lines in the areas of Hollywood and Hallandale Beach.
It is a bit amusing to long-time real estate professionals in the area because there has been a historic difficulty in getting buyers to consider the “next county”, but with the shrinking market, the anticipation of rising prices, and the competition for any available properties, this “thinking outside of the box” has begun in earnest.
Today, it is possible to find many different projects under construction in places such as Broward County, which was once not viewed as the same general region as Miami. In fact, a recent “New York Post” article pointed out that Related ISG is in the midst of developing its Apogee Beach Condo project in the Hollywood Florida area, and that most of the units had already sold.
The bulk of buyers for these units tend to be international buyers, particularly South American citizens who want a home in the region and who are recognizing the fabulous deals currently available. There is still interest from Canadian buyers as well as retirees from the United States, but the demographics point to an entirely new generation or group of buyers showing interest in the area.
As long as the prices remain measured and controlled, which is something that builders have learned is the key to their ongoing success in the current financial conditions, the buyers should continue to pour in. The comparisons are hard to ignore when you see that many Latin and South American properties of similar quality and size are selling at $1,000 per square foot, while the same homes are coming in at an average of $400 in the Hallandale and Hollywood Florida real estate areas.