Posted on Wednesday, 7.28.2010
Downtown Miami Condos - Miami Beach Real Estate
Residents and officials may soon see downtown change into the lively, 24-hour city they long for thanks to the downtown Miami condos market.
Even as home prices have continued to drop across South Florida, Downtown Miami real estate, the center of the over-development that many believe set off the housing market collapse, seems ready for a comeback, a new study by the Miami Downtown Development Authority shows.
During the first half of this year, sales of downtown Miami condos have increase and the inventory of empty new condos on the market is steadily declining, the report found. Miami beach real estate prices are on the rise as well.
There were 1,933 units sold in Miami's downtown area, in the first six months of this year which was a 110 percent increase over the first six months of 2009, when 919 units closed The area of downtown is defined by areas from Brickell north to Midtown and from I-95 east to Biscayne Bay.
In the first six months of the year, the average sales price of downtown Miami condos was $356,100 up about 16 percent from the first two quarters of 2009, when the average unit sold for $306,700. Between June 2009 and June 2010, existing condo prices across Miami-Dade County dropped about 9 percent to $128,800.
As of June 30, the inventory of new, unsold downtown Miami condos was estimated at 5,400 units. The Brickell area is home to about half of the unsold units in the downtown area. Nearly a quarter of the remaining new Miami condos are in the Central Business District, bordered by NE Fifth Street on the north and the Miami River on the south.
Downtown Miami's glut of new condos could be gone within the next 18 months, at this pace but there are a couple of warnings.
The DDA's numbers exclude the 870 units at Mint at Riverfront and the Paramount Bay buildings which are currently empty and will begin sales in the near future. And second, the most of the sales have been generated by investors, who are predicted to resale these Miami real estate properties back onto the market once prices rise again.
Compared to 2009, the DDA's report shows that leasing activity was up 14 percent in the first six months of the year, with average rent down about 1 percent, to $1,787. In the interim, that growing group of supporters hoping that a vigorous rental market can encourage the type of downtown renaissance they long for are encouraged by an occupancy rate at almost 75 percent.
Call MLR Realty at: 1-305-673-3303 to speak with a Realtor that specializes in Miami real estate or for information on downtown Miami condos for sale and for lease.