June 06, 2018

In Miami, Signs Of A Condo Glut

Seth Denison, managing principal of the Miami-based private equity firm Brickell Ventures L.P., wrote in a May blog post that prices had dropped 57% after the 2008-2009 housing crisis, but bounced back as institutional investors and Latin American buyers swooped in for deals. When development picked up again in 2012, banks required 50% deposits from buyers and that new buildings be 50% pre-sold before construction could begin. Those measures were supposed to keep supply and demand in check, but, Denison wrote, “speculators bought into the concept wholeheartedly, putting down deposits on thousands of new condo units proposed for development in South Florida, which brings us to the present.”

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