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Greater Downtown Miami Market Analysis

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Greater Downtown Miami Market Analysis

Greater Downtown Miami’s pre-construction condo market has surpassed the halfway point, with less than half of the 10,000 units in the pipeline now completed. And due to the growing inventory of new condos, resale pricing continues to fall in the urban core, according to a new report.

Integra Realty Resources shows 4,091 units have been delivered and 6,254 units are under construction – less than previously expected. Some projects didn’t survive the slowdown that deepened last year.

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Over the past year, Related Group cancelled Auberge Residences & Spa Miami, and the Verzasca Group converted plans for 2000 Biscayne from condos to rentals. Ugo Colombo is also reportedly planning to develop retail on a site previously planned for condos. Projects like Aston Martin Residences and Missoni Baia are the anomalies: both launched sales during the slowdown and are now breaking ground. Next year, expected completions include Brickell Flatiron, Gran Paraiso and One River Point, which together would add nearly 1,300 units to the market.

About 70 percent of condos under construction have been presold, according to the report authored by Integra Realty Resources.

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Figure 3 shows historic condo deliveries and absorption since 2001. Over an 11 year cycle, the market delivered and absorbed over 2,000 units per year. In the past 15 year cycle, the average is slightly less at 1,700 units per year.

Figure 3 shows historic condo deliveries and absorption since 2001. Over an 11 year cycle, the market delivered and absorbed over 2,000 units per year. In the past 15 year cycle, the average is slightly less at 1,700 units per year.

Resale prices, which rose in 2012, 2013, 2014 and 2015, fell beginning in 2016 and continued dropping through the second quarter of this year. Existing inventory sold for about $400 per square foot mid-year 2017, compared to the peak of $457 per square foot in 2015, according to the report. May was the best month for closed sales in two years as sellers adjusted to the market. More than 140 existing units sold in May and 160 were pending, the report shows.

Growing inventory and declining prices have led rents to drop, as well. As a result of falling rents, condo owners are more likely to sell their units than rent them. On average, studio condos, part of the “shadow market,” were asking $2,522 a month in Greater Downtown Miami, down nearly 6 percent from the previous year.

Meanwhile, a slate of new apartment buildings, including the Broadstone at Brickell, Midtown Five and Eve at the District, has pushed rents up in the traditional multifamily market. In June, annual rents were up 3.4 percent to $1,831 a month for a one-bedroom apartment in a multifamily building.

(Source: Integra Realty Resources, Miami Association of REALTORS, The Real Deal)

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Miami Ranks Six in Top 40 Most Important Cities for the Super Wealthy

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Miami Ranks Six in Top 40 Most Important Cities for the Super Wealthy

According to Knight Frank's new Global Wealth Report for 2015, London is still the most important global city for the world's ultra-high-net-worth individual (UHNWI), followed by New York and Hong Kong, but changing fortunes across the global over the past 12 months has seen Hong Kong and Singapore continue to slug it out for pole position in Asia.

Yet Miami, over the last decade, has quietly moved further up the list of the 'Top 40' most important global cities for the world's super rich. In 2015, Miami now is ranked number six worldwide, ahead of cities like Paris and Dubai.

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Growing Population Of Renters Paying Big Bucks To Live In Miami

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Growing Population Of Renters Paying Big Bucks To Live In Miami

Miami has the highest proportion of residents who rent, and they are willing to shell out a big chunk of their income to live in the city, according to a new report.

Miami's rental population increased 25% between 2006 and 2013, the second highest nationwide. Those moving to Miami are wiling to pay a higher percentage of their income to live here, with 39% of residents paying half their income or more in rent, second highest after New York.

The study says that 65% of the population now rents in Miami, surpassing long-time leader New York City at 64%.

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