Miami-Dade Readies Itself for another Housing Boom


St. Regis Residences Bal Harbour


The new St. Regis Bal Harbour Resort & Residences has let every developer know that now is the time to start constructing new condominium buildings. Sales surpassed $750 million in the first year, and this is making Bal Harbour the place to construct a new building in Northeast Miami-Dade.

In November of 2011, people began to purchase condominium homes at the St. Regis Bal Harbour at a price of $1,450 for each square foot. Other developers saw a chance to build 10 more buildings in this area. This means that a total of at least 800 new condominium homes will be available for purchase near the prestigious intersection of 96th Street and Collins Avenue. This popular address encompasses Bal Harbour, the Bay Harbor Islands and Surfside.

The St. Regis is Bal Harbour real estate where people have purchased over 200 condominium homes in an area that contains about 500 available units, and developers are very encouraged by this. They are hoping to realize a similar type of success with their new buildings and to share in the $1.35 to $13.5 million in sales that the area has engendered.

Many developers have noticed the positive trend, and several are taking advantage of the possibilities, including developers in Argentina and Turkey. Many of these firms are in the process of acquiring their permits to have the opportunity to build the Harbor Park construction of 20 condominium homes that will be located on the Intercoastal Waterway and another 260 condominium unit project that is to be built near the Bal Harbour Beach Club.

Chadeau Beach Sunny IslesNational and international firms are working on obtaining the government approval they need for their projects in the areas of Bal Harbour, the Bay Harbor Islands and Surfside. Several of these construction projects will be ready for pre-sale this year. Construction is set to begin next year, and the developers anticipate completing their buildings in the year 2015 if not before.

Miami-Dade, Palm Beach and Broward Counties announced last December the fact that they will be the recipients of new condominium buildings. This adds up to a total of 14,200 new condominium homes on Florida’s coastal region in almost 100 new buildings. One construction has been completed and 14 more towers are currently being built. Of those, the most notable is the Chateau Beach, a 35-floor construction in Sunny Isles Beach. Another is the Regallia Condos.

Regallia Sunny Isles BeachCurrently, it is difficult for developers to obtain financing for construction projects in this part of the country. As a result, a majority of the condominium units are being sold to investors outside of the United States. As the developers complete each particular stage in the development process, their investors make a deposit toward their purchase. With this system in place, the developers obtain about 80 percent of the condominiums’ purchase prices before construction is completed. Developers may use a large portion of these deposits to build their towers.

The latest trend in placing 80 percent of the purchase price before the building has been completed is much different from what was required during the last housing boom. At that time, condominium buyers only need to offer 20 percent as a deposit, and the area experienced a housing bust.

The new plan of requiring a series of deposits will limit the potential for another housing bust, but it also appears to be helping sales of pre-existing condominium homes. Last year, people purchased nearly 270 pre-existing condominium homes at a price of $260 per square foot. This is an increase over the same time period for 2011.

It appears that the condominium boom is on its way. The question is whether or not people will be interested in a building that does not contain the name St. Regis.

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