In Miami real estate news, 1,200 condo units remain unsold that were built before the housing boom in 2003. With this information, real estate developers in Miami are still proposing the development of 260 new towers with 36,000 new units. Despite the housing crisis in 2008, condo developer sales generated over $23.2 billion with an average of $397 per square foot since then.
During the last South Beach boom cycle from 2003 to 2010, 525 units out of 5,550 units are still unsold. This mans that nine percent of the units are still unsold from the last south beach condo cycle. South beach has the highest amount of unsold units from the last cycle in South Florida. The second highest amount of unsold units is in downtown Miami with 290 unsold units from a pool of about 22,200 units. The Boca Raton-Deerfield Beach area comes in with the third highest amount of unsold units with 250 unsold units. This number along with a total condo pool of 1,050 equates to 24 percent of unsold to sold units in the Boca Raton-Deerfield Beach area.
The Hollywood-Hallandale Beach area is the only costal South Florida area to have sold all of their condo units. This is why there is such a recent boom to develop more condos in that area.
It is the second most active costal South Florida area for preconstruction units with 3,200 units announced.
From all of this information, it is not surprising that South Beach had the highest average price per square foot at $600. Also not surprising that Boca Raton-Deerfield Beach area had the second highest price per square foot at $491. The Hollywood-Hallandale Beach area had an average price of $358 per square foot.
The question moving forward is whether real estate developers with unsold condo units from the previous boom will be still able to obtain premium prices for their older units now that there is another cycle.