According to a recent report published by Condo Vultures, a well established Miami-based market intelligence and licensed Florida real estate brokerage company, an average of nearly 500 new condos traded per month in Greater Downtown Miami between April and June 2010, representing a 105 percent increase compared to the 241 units per month average in second quarter of 2009.
Transactions for nearly 1,500 units with 1.8 million square feet of saleable space generated gross sales of $584 million, or $333 per square foot, in the second quarter of 2010. The flurry of sales activity has reduced the number of new condos under developersâ control in Greater Downtown Miami to less than 5,100 units.
The unsold new condos represent about 23 percent of the total new inventory constructed in a 60-block stretch of Greater Downtown Miami between 2003 and 2010. A year ago in July 2009 about 40 percent of the new condos in the same submarket were unsold.
âIn the last year, the landscape of the Greater Downtown Miamiâs new condo market has begun to take shape,â said Peter Zalewski, a principal of Condo Vultures. âNearly 3,800 new condo units have traded in the last 12 months. Based on our early research, four-out-of-every-five condo deals are being transacted in all-cash.â
In the first six months of 2010, more than 2,200 new condo units have changed hands in the 82 new projects constructed since 2003 between the Julia Tuttle Causeway south to the Rickenbacker Causeway, Interstate 95 east to Biscayne Bay, according to the report.
Of the 82 Greater Downtown Miami projects constructed in the last seven years, 38 condominiums are completely sold out and an additional 19 projects have sold between 75 percent and 99 percent of their units. An additional four projects have sold between 50 percent and 74 percent of their inventory.
Of the remaining 21 new projects, there are still seven condominium complexes with less than five percent of the units sold. The remaining 14 new projects have sold between 10 percent and 38 percent of their respective inventory, according to the report.
Overall, nearly 17,200 new condo units have sold in Greater Downtown Miami since 2003 for $6.7 billion, or $376,500 per unit. The pricing works out to an average of more than $336 per square foot, according to CondoVultures.