Miami Condo Boom 2.0

Developers are preparing to launch the next wave of condo towers in downtown Miami, targeting international pre-construction buyers who can pay in cash.

Over the past few years, the Miami Beach Real Estate market has suffered like every other market, but now a new housing boom appears to be on the horizon. At least six new condo towers are being pitched for downtown Miami along Brickell and Biscayne Blvd.

The influx of cash buyers into the Miami market coupled with the growing population and reduced construction costs have created a supply and demand situation. South Florida condo resales are up 65 percent in 2011, and only about 2,000 of the 23,000 downtown condos built during the boom remain unsold. Buyers based in Latin America, Canada, Europe and the northeast United States have spent more than $3.8 billion on South Florida real estate this year with international buyers accounting for about 90 percent of new condo sales.

The domestic market for new condos is basically non-existent. With less than 10 percent of downtown’s condo buyers based in Miami, the real estate market has never been quite as dependent on foreign buyers. As more developers announce new projects, competition for international buyers promises to be fierce. (Miami Herald)

With current double-digit unemployment and stagnant home prices analysts think the end result will be another crash like the last wave of new developments in Miami. However, developers say they’ve learned their lesson and are adopting new financial models with less risk and focused on cash financing, with buyers being required to pay as much as 80 percent of the full price before they even move in. They are targeting people with cash on hand who are planning to live in their new purchase or invest and use as a rentals.

One of the new projects, called My Brickell, at 30 SE Sixth St., is set to break ground early next year, bringing 192 units to the market. The Genting Group’s proposed Resorts World Miami, a $3 billion casino destination to be located at the site of The Miami Herald, would include two residential towers, with 1,000 condo units.

Keep in mind these are only plans. If the cash buyers don’t bite the plans won’t stick, and only time will tell. But if there is property to be sold JSR is on the job. I will keep you updated on the development of these pending projects and you will have the first opportunity to purchase…just make sure you have some cash. Until then you can find all of the current listings for South Beach condos on my website www.JoshSteinRealtor.com.