A new high-rise has begun pre-sales on the Atlantic Ocean between Ft. Lauderdale and Miami Beach, a possible sign that the Southeast Florida market is starting the recovery process.
The 22-story Apogee Beach condo is planned for the Hollywood/Hallandale coastal condominium market in Broward County, which is lacking in inventory, both new and existing. So it may not be much of a reality check. But if it sells, it could be a portent of things to come.
"This is going to be an interesting test as the Hollywood / Hallandale Beach coastal condo market is virtually out of new unit inventory," said Peter Zalewski, a principal with Condo Vultures, a Bal Harbour-based real consulting firm.
"Individual purchasers and bulk buyers have acquired practically every developer unit built during the real estate boom in the Hollywood / Hallandale Beach market. Given the oceanfront location and the limited number of units, the Apogee Beach is a shrewd way to test the will of buyers for new condo product in Southeast Broward County."
Given the volume of sales in the Hollywood/Hallandale submarket in the first quarter, the 49-unit Apogee should do well. According to CondoVultures, developers sold $18.5 million in new condo units in the area during the first 90 days of 2011. During the same period, individual sellers logged 530 sales, up from 313 for the first three months of 2011.
The rental market is strong, too. Tenants took down 375 units at an average price of $1,600 per month between January and April. Last year, 310 units were rented during the period at an average rate of $1,540. And in 2009, 280 units were leased at an average monthly fee of $1,435.
