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Florida Sees Flurry Of Sales
March 23, 2010Article by Ray Withers
Sales of Florida property, or more specifically condos, saw a massive surge in the second half of last year after lenders reduced prices by a further 30%. In fact more condos were sold in the third quarter, than in the first two put together.
Buyers purchased 1655 new condos in Greater Downtown Miami in the latter part of the year, up by 133% from 711 sales in the first six months, according to research from Florida-based consultancy Condo Vultures.
“Buyers, primarily with cash, purchased an average of 6.5 new condo units per day from developers in 2009,” said Peter Zalewski, principal at Condo Vultures. “The buying activity really picked up velocity in the second half of the year once retail condo prices were slashed by lenders from $300 per square foot down to $200 per square foot, which is in many cases below the replacement cost of the finished product.
The surge is not surprising according to international property investment consultancy Property Frontiers, which said that replacement cost is the key.
“One of the biggest things in the property market today is scepticism; people are sceptical about discounted prices, because they are mostly taken from market values taken at boom time. A 20% discount off peak prices, is no discount at all in a market where prices have fallen 30%. Replacement cost has become the only true measure of property prices in markets like Florida, and when properties are below that level they are seen as a true bargain.”
Property Frontiers are currently marketing a Florida property development offering 2 bedroom condos in central Orlando for just £35,000. This is 50% below their build replacement cost. The Village at Town Center is a luxury resort development just minutes from Disney World and the new Wizarding World of Harry Potter attraction. Tenants are already in place yielding 10% returns per annum. Here are some of the other attractions in Orlando, many of which are located close to the Village at Town Center development:
Disney’s Animal Kingdom Theme Park
SeaWorld Adventure Park
Universal Studios Theme Park
150 Golf Courses
The firm is also marketing the Waterside at Coquina Key development, a quaint development of condominiums on a quayside, all of which are frontline to the water. Waterside at Coquina Key offers 1 bedroom condos from £51,400 and 2 bedroom condos from £58,200. All properties have been refurbished to a very high standard providing premium finishes which include new carpets, decoration, full fitted kitchens complete with new kitchen units, microwaves, washer/dryers and other kitchen appliances in black. Each property comes with a terrace or balcony with direct access to the water.