The downtown Miami condominium market is cooling, as many foreign investors retreat to the sidelines amid currency devaluations against the U.S. dollar, according to a report released Tuesday by Miami’s Downtown Development Authority.
The Miami Downtown Development Authority issued its latest Downtown Miami Residential Market Report in Q1 2015, with some notable takeaways:
- There are early signs of slowing demand of new construction, most likely because of the strength of the US dollar. However, pricing remains steady.
- Resale units are trading at a 35% discount to new development. Accordingly to the Downtown Miami Residential Market Report, we feel that the deals can be found at resale buildings in prime locations with protected views of Biscayne Bay, such as Marquis, 900 Biscayne, Icon Brickell, and Paramount Bay, to name a few.
- The number of units in construction in Downtown Miami is 6,019, with an additional 2,070 units in the contracting stage.
- Strong core banking, legal, construction and tourism industries, are all driving positive local economic conditions. One should not that S&P recently raised its rating on Miami bonds by 4 notches to A+ investment grade.
- The Chinese are set to become much larger players in the South Florida real estate market. Chinese investors have been purchasing development sites (such as the old Capital site in Brickell) and several business groups have made efforts to increase exposure to Chinese buyers, as well as lobby for direct air routes to Asia.