News reports tell us that it will take months, if not years, to sell off all the condominium apartments now listed for sale in South Florida. But developers continue to put the pedal to the metal when it comes to new construction.
According to a new report from Miami Realtors, 38 spanking brand new buildings have added more than 9,000 units to the mix in the last 18 months. Contrary to popular belief, though, those apartments are selling fast — and largely to foreign buyers.
“Contrary to recent headlines, foreign buyers have not only remained active in Miami’s new development market — they’ve increased their presence,” said Alicia Cervera Lamadrid, managing partner of Cervera Real Estate. “Any suggestion that international interest in Miami has waned is simply inaccurate.”
Buyers from Latin America, in particular, continue to represent a significant share of condo sales in new buildings. “Any suggestion that international interest in Miami has waned is simply inaccurate,” the report maintains. “Miami remains a top destination for global capital, lifestyle, and long-term investment.”
One reason the South Florida market appears to be in bad shape is because new and pre-construction units are not counted in the local multiple listing service and traditional housing statistics. But Miami Realtors’ first-ever report tracking actual contracts and deposits aims to change that perception.
Miami Realtors is the largest local Realtors association serving more than 60,000 agents, brokers, and affiliated members.
“South Florida is home to one of the most robust new construction markets in the United States but statistics for new construction sales have always been limited,” the report notes. “Miami is a leader in pre-construction sales or towers that are being pre-sold before any construction.”
Over the 18-month period ending in June, international buyers purchased 49% of new South Florida properties, including those in the pre-construction phase as well as condo conversions, the report says. And Latin Americans account for a majority of those sales.
Indeed, nearly all the international buyers were Latinos in Downtown Miami, 99%; Southeast Broward, 84%; Coconut Grove, 97%; and West Palm Beach, 89%.
To date, 5,460 apartments under development in the region have been sold, 2,688 went to foreigners. And 86% of those were Latinos.
“Miami is as popular as ever with buyers from Latin America,” says Craig Studnick, CEO of ISG World. Added developer Ryan Serhan: “The demand from Colombia, Mexico and Argentina isn’t slowing down, it’s accelerating.”
The other 51% of South Florida buyers hail from the states. As usual most domestic buyers come from New York. But a hefty 13% move from California and 10% arrive from New Jersey.
Together, Miami-Dade and Broward Counties draw more international buyers than other high demand locations such as Houston, Los Angeles, and New York.
