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Florida The Land Of Hope And Discounts
March 9, 2010Article by Ray Withers
Despite massively increasing sales, developers aren’t expected to completely remove the discounts on Florida property. According to an expert on the market it is much more likely that the discounts will become the norm, and the prices will increase from their current levels — this may or may not start happening soon.
When asked what effect the removal of discounts may have on the market; David Cox, director of international property investment consultancy Property Frontiers and a well known expert on the market was recently quoted as saying:
“If it was mainly investors buying then it would be easy to say that the demand would quickly reduce upon the removal of the discounts, but the truth is that the buyer types and reasons are so diverse, that we have no such easy way of gauging the effect removing the discounts would have.
“What I will say is that investors are mainly buying because of the discounts, and they would not buy if the pre-discount prices were reintroduced. However, this is highly-unlikely given that market values have changed so drastically in the last 18 months. Whether these investors would buy if prices were simply put up to their current market values would depend on the local economic fundamentals, and/or the state of the local tourism market in areas zoned for holiday lets.”
Foreign demand for Florida property is thought to be reaching pre-bust levels, having started to increase in the mid-part of last year, and with talk of a mini-boom on depressed and repossessed property sales as early as August last year.
Spain has and is experiencing a similar increase in demand, which happened at a similar time and for the same reason; that developers started making discounts upon realising it was necessary to get sales. The one difference between the two is that there is already talk of at least one Spanish developer (Key Mare, Almeria) putting up prices across their resorts.
As yet there are no such reports coming out of Florida. That is not to say that it is not happening, maybe it is and just not being reported. If not it surely can’t be long before Florida property developers do start to test the water with some price rises — they certainly have plenty of room to do so:
There is currently a luxury resort development located just a few minutes from Disney World, and the new Wizarding World of Harry Potter theme park, which offers 2 bedroom condominiums priced from just $54,900. The Village at Town Center is being marketed by Property Frontiers.