Even as plans are announced for a 25th new condominium tower in Hollywood, 4,300 units leftover from the previous condo boom in South Florida remain unsold, according to a new report from the CondoVultures consulting firm.
But as many units as the hangover represents, it's not as bad as it sounds. Thanks to 3,000 sales last year, 91% of the 49,000 units built in the tri-county market since 2003 have now been sold. If you can't remember your middle school math, that's nearly 44,300 units.
“South Florida's supply of new condo product created during the recent boom is on pace to sell out in the first half of 2013,” said Peter Zalewski, a principal with the Bal Harbour consultancy.
Zalewski said foreign investors from countries with strong currencies are responsible for many of the sales, which averaged out at about 250 a month last year. But whether they can and will continue to invest in South Florida is the real question, the consultant said.
He also pointed out that the number of unsold apartments does not include the more than 8,000 units that have been sold in bulk to investors for re-sale.
Nevertheless, in apparent anticipation of the eventual sellout, developers have now proposed 25 new properties with a total of nearly 5,000 units. As of March 6, construction has begun on five of those projects.
Meanwhile, Condo Vultures also reports that 31 condos sold last year for more than $5 million each, and nine other $5 million-plus deals are pending. The most expensive went for $21.5 million in South Beach.
If you think 40 sounds like a lot, it should be noted that 130 units are still on the market for at least $5 million.
