Renting and flipping new Miami condos is all the rage – South Florida Business Journal

Renting and flipping new Miami condos is all the rage – South Florida Business Journal.

The majority of new condo buyers in Miami have been looking to capitalize on their investments by flipping the units or renting them out, according to research by CraneSpotters.com.

Looking at the four largest condo towers completed in greater downtown Miami since construction resumed in 2011, anywhere from 45 percent to 96 percent of the units sold by the developers in each building were placed back on the market or put up for rent. That indicates a high level of investor ownership in those buildings, and also raises some questions.

With more than 18,100 condo units either under construction, planned with approvals or proposed in greater downtown Miami, according to CraneSpotters.com, is there enough rental demand at higher price points to support that many new units? And how will they be impacted by the nearly 7,800 apartments in the development pipeline?

Here’s a look at how the four largest recently completed condo projects in Miami have performed:The recently completed condo towers in Miami sold in the mid-$400s per square foot, but the average price per square foot for new projects is more than double that now, CraneSpotters.com principalPeter Zalewski said. When the sales prices climb, so must rents. Are there enough high-earning renters in Miami to fill those units?

Nine at Mary Brickell Village

  • Units: 390
  • Units sold/price per square foot: 300 for $501
  • Active MLS listings/price per square foot: 17 for $469
  • Units resold: 0
  • Asking rentals/price per square foot: 95 for $2.78
  • Closed rentals/price per square foot: 23 for $2.47

1100 Millecento Residences

  • Units: 382
  • Units sold/price per square foot: 376 for $435
  • Active MLS listings/price per square foot: 99 for $403
  • Units resold: 1
  • Asking rentals/price per square foot: 67 for $2.59
  • Closed rentals/price per square foot: 120 for $2.25

BrickellHouse

  • Units: 374
  • Units sold/price per square foot: 374 for $504
  • Active MLS listings/price per square foot: 91 for $627
  • Units resold: 7
  • Asking rentals/price per square foot: 64 for $3.63
  • Closed rentals/price per square foot: 77 for $3.24

MyBrickell

  • Units: 192
  • Units sold/price per square foot: 192 for $360
  • Active MLS listings/price per square foot: 31 for $379
  • Units resold: 8
  • Asking rentals/price per square foot: 19 for $2.67
  • Closed rentals/price per square foot: 126 for $2.01

It looks like some of these condo towers are more like apartment buildings. Projects in other South Florida cities have behaved quite differently. For instance, in Broward County’s largest newly completed condo tower:

Beachwalk – Hallandale Beach

  • Units: 300
  • Units sold/price per square foot: 289 for $448
  • Active MLS listing/price per square foot: 49 for $532
  • Units resold: 1
  • Asking rentals/price per square foot: 6 for $2.97
  • Closed rentals: 0

There’s a fair amount of resale activity, but not many rentals. CraneSpotters.com also looked at the largest recently completed condominium in Palm Beach County, Bay Colony Juno Beach, and found only two of its 121 units on the rental market, although it had 23 resales.

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