The real estate market in South Florida continues to boom and grow stronger by the day, and developers are certainly taking note. They are looking for ways to start adding even more amenities and luxury into the new towers that are coming to the area in the coming years. In addition to adding more amenities, they are also working with designs from popular architects as a means to make the properties even more attractive to buyers. This is helping to increase the presale price of many homes in the area. Just last week several such projects have started sales: Armani Casa in Sunny Isles Beach and Fendi Palazzo in Sunny Isles Beach.
The Change in Costs
Those presale properties on the eastern side of the I-95 have a much higher asking price because of these additions. In fact, the minimum is about 102 percent higher than the units that are currently on the market for resale in the same area. This includes homes in the Broward, Miami-Dade, and Palm Beach counties. In early May, research indicated that the presale price of condominium properties in the area was averaging $768 per square foot.
To illustrate this better, let’s break it down into the individual areas. In Miami-Dade, the cost was $856 per square foot for the presale properties. It was $503 in Broward and $555 in Palm Beach. For the resale homes, the average cost was under $385 per square foot. In Miami-Dade, it was about $484, while it was $265 in Broward, and $213 in Palm Beach.
The Market Is Healthy
Currently, a larger number of properties are on presale, or in the planning stages, in South Florida. Nearly half of the 31,000 recently built or proposed homes in the area are on the market for presale currently. Currently, 13,700 pre-2011 condominiums already built and ready for resale are available throughout the region. The approximate number available in Miami-Dade right now is 7,900, while Palm Beach has 2,700 units, and Broward has 3,200. This seems to be a substantial number of homes for sale, and it really is, even though the sales have been brisk.
In the first part of 2014, each month has seen an average of about 1,770 condominiums sold in those areas. This gives the area a little more than seven months of inventory available if the sales continue as they are right now. With a large number of properties available, it becomes something of a buyer’s market, which means it can be possible to get some better deals on some properties.
However, one of the most interesting things that the real estate field will be watching in the coming months is just where the buyers will be putting their money. Do they really want to buy a more expensive luxury condominium that is still in the preconstruction phase, or do they want to buy a property that is for resale right now? Keep in mind that the buyers will tend to get cheaper deals with the resale properties. It depends on how the economy fares, the nature and final cost of those premium properties, and the continued availability of the resale properties.