Downtown Miami’s condo market is still going strong with sales and rental activity climbing, despite a jump in prices.
A new study by the Miami Downtown Development Authority found that 1,000 residential condo sales closed in Downtown Miami during the first quarter of 2012, a 26.7 percent jump compared to the same period last year. The average unit sales price for the year ending March 31, 2012 was $371,084, a 5.2 percent increase over the prior 12 months.
The study also found that Downtown Miami condo rentals remain among the most active market in the country, with 4,584 units leases between April 2011 and March 2012. That’s compared to 4,559 during the previous year.
Overall, it’s a case of simple supply and demand economics. Prices are rising as the oversupply of condo units from the pre-recession building boom is definitely dwindling driven by particularly strong interest from international investors.
“Downtowns across the country are seeing a resurgence as young professionals seek a more urban lifestyle. Yet nowhere is this trend more apparent than in downtown Miami,” said Alyce Robertson, executive director of the Miami DDA.
As the existing condos are getting filled, new projects have been announced like BrickellHouse by Newgard Development Group and MyBrickell by The Related Group. Downtown Miami’s residential population is expected to grow to more than 85,000 over the next few years.