Miami Condo Market and Lifestyle Updates
The Big Players are Leaving Clues About the Miami Condo Market

The Big Players are Leaving Clues About the Miami Condo Market

by Sep Niakan | September 20, 2016

The Related Group’s delay the Auberge Residences & Spa groundbreaking tells us a lot about the state of the Miami condo market. The big players are putting on the brakes, as a glut of inventory needs to come off the market or sell before we enter another growth phase. In the meantime, reduced buyer demand has taken down condo prices in Downtown for the first time in five years.

Developers generally look to sell about two-thirds of the units before beginning construction, but the 3-tower Auberge’s only sold 15% after more than 6 months on the market. So, this stalling of plans is a smart and healthy move on Related’s part. In the meanwhile, they’ve also extended the leases for up to 2 years on the existing office building that was set to be demolished to make way for the luxury tower. So this construction delay is real and set in stone.

Going by the lease extension, Auberge could be on hold until at least August 2018. And, one of three things is likely happen during this time.
1.      Related could garner enough sales if the market regains momentum.
2.      They could switch plans to a luxury rental community, condo-hotel, or just go heavier on the retail and office portions of the project.
3.      They could end up cancelling altogether.
 
Even if they did cancel, it won’t come as a huge surprise, since Upper East Side’s Boulevard 57 and Downtown’s Krystal Tower have done so in keeping with the market slowdown. Perhaps more developers should re-consider and adjust till the market bounces back.

For now, the biggest hope for a quicker rebalance is if the Latin American currencies gained steam against the U.S. Dollar. 

In the end, every up-cycle has to come to an end. We had a great run of increasing prices for 5-6 years. Now we are experiencing the beginning of a correction that will be followed by another great run up in prices. In the meantime, let’s hope the developers continue to get smart like Auberge did and help us have a softer landing.

 


Auberge Residences & Spa - Courtesy of Related Group

Recent posts

Opinions and Advice

Miami Pre-Construction Frequently Asked Questions

by Sep Niakan | May 22, 2017

How much is the fee to have a knowledgeable and licensed Miami real estate broker help me select the right property? How much of my money does developer use during construction? What are the penalties if I decide to cancel my pre-construction...

Opinions and Advice

Comprehensive Guide to Buying a Pre-construction Property or Condo in Miami

by Sep Niakan | May 22, 2017

Why You Need to Read This Miami Pre-construction Condo Guide Miami Pre-Construction Phases How to Negotiate the Best Miami Pre-Construction Deal How to Finance Pre-Construction Property Closing Costs for Pre-Construction...

Lifestyle

Save the Date for these Stellar June Events in Miami

by Sep Niakan | May 20, 2017

With summer here, Miami turns up the heat with the hottest events lining up for the month of June. You can find a new way to spend each day, whether it's catching up on international cinema, going on a food-eating spree, or peering over the...

Lifestyle

The Top Ten Highest-Rated Restaurants in Miami

by Sep Niakan | May 14, 2017

It’s no secret how Miami’s local food scene is going global with innovative restaurants populating the landscape. We’ve got locals to tourists and even celebrities raving about how Magic City's culinary scene has grown leaps...