Miami Condo Inventory Hangs Over Developers
Miami Today reports on a panel discussion that touched on the overbuilt condo market. "'We are having a recession with certain developers right now,' Mr. Cannon said, 'because they're out of business.'"
"11,000-plus unsold units sat on the market at the end of last year. Meanwhile, more than 72,000 housing units are in the pipeline for the City of Miami, and tens of thousands are planned elsewhere in the county."
"The Four Seasons' 186 units, on the market for two years, were once the city's most costly. Dr. Moreno said that of the 46 sold so far, owners of only two had secured homestead exemptions, available only for primary residences, and only three had voters registered there. Developers reportedly just refinanced more than 100 unsold units. Two-bedroom units up for resale start at $1.1 million." How would you like to refi 100 of those?
Miami Commissioner Johnny Winton has an interesting take. "But will a bust follow the boom, as has happened here over and over? 'You can't use historical data to predict the future because we are in uncharted territory. Build 'em,' was Mr. Winton's sage advice. 'If they fail, we're going to end up with affordable housing.'"
7 Comments:
'If they fail, we're going to end up with affordable housing.'"
That is too funny!
I was talking with someone about the possibility of the FTAA being headquartered in Miami - and therefore creating 50K or 75K new jobs:
http://www.ftaa-alca.org/alca_e.asp
Does anyone know anything about this?
In Dallas, we've got the W Hotel and & Residences being built with 144 "upscale" condos along with the Ritz Carlton Hotel and Residences a 1/2 mile away with 70 "luxury" residences. There are thousands of these high dollar condos already built or going up in a two-mile radious just north of downtown. I don't know who in the world will be buying these places or what they do for a living. My attorney salary along with my wife's 60K/yr doesn't make me comfortable about spending $500K for a two-bedroom, 1300 sqft apartment. Oh yeah, they've all got valet parking - might have to rethink and do an IO for that amenity.
this article is too funny... man... why didn't this guy just come out and it say the infamous words of... this time it's different...
I agree with the Commish. Build 'em. The only folks who get hurt are the developers, banks, mortgage brokers, realtors™ and speculators. Everyone else benefits.
Someday there will be enough demand to fill these condos. But that day is probably 5-10-15 years off. In Minneapolis, if the planned condo projects get built, they will create about a 7-12 year supply.
So build 'em, I say. That's the best way to break this bubble. Oversupply.
"I think FTAA have to have other local offices all over Florida, California, and Northern East to create new $200K salary jobs to create buyers who can afford the 50% above median price houses that only 5% of the local population can afford now."
Those new $200K jobs are *all* in real estate! With such booming prices anyone working in the field can buy one. The speculators too! ;-)
A lot of people here in Central Florida believe that the bust won't affect us much at all -- a flattening of prices at worst. Perhaps. But what happens when all the out-of-state people, who were supposed to comprise the influx of buyers, no longer get outrageous prices on the sale of their existing homes? Not to mention that property taxes now seem to be higher than the state income taxes we thought we so cleverly avoided. Seems to me the influx will have less to spend here, so that, in the end, no one is spared the price decline. Chip
Ben, Deb, John Law etc.
When an overhang collapses!
From the property section of the 'Australian' newspaper, Thusday 12th May.
"Mr Tunbridge said one investor stood to lose more than $800,000 on a luxury three-bedroom apartment at Bellevue Hill in Sydney's east.
The investor paid $2.47 million for the property just after the peak of Sydney's property boom in 2003.
Landmark White said the property was passed in at auction for $1.5 million and was on the market for $1.65 million."
AJH
Post a Comment
<< Home