A 25th new condo tower has been completed east of I-95 in the tri-county South Florida region of Miami-Dade, Broward and Palm Beach since this current real estate cycle began in 2011.
The Related Group recently began recording unit sales at the new 33-story Beachwalk tower with a combined 300 condo and condo-hotel units to be developed in the 2600 block of East Hallandale Beach Boulevard in Southeast Broward County, according to Broward County records.
To date, at least 50 new units have been transacted at an average price of nearly $435 per square foot, for a combined $24.1 million in sales, according to government records.
The unit transactions in the Beachwalk have ranged in price from less than $376,000 to more than $752,000 per unit. On a per-square-foot basis, the developer unit sales in the Beachwalk have ranged from less than $330 to nearly $560, respectively, according to government records.
In this current South Florida cycle, the Hollywood/Hallandale Beach area is the second most active market for preconstruction condo units east of I-95 in the tri-county region as of Monday, according to the preconstruction condo projects website CraneSpotters.com. (For disclosure, my firm operates the website.)
Based on the latest statistics, developers have announced 22 new towers with nearly 4,850 condos in the Hollywood/Hallandale Beach market, representing about 11 percent of all new units announced in South Florida since 2011, according to the data.
In South Florida, developers have proposed 343 new condo towers with about 43,865 units to be built east of I-95 in the tri-county region, according to CraneSpotters.com.
The Beachwalk is the third new tower — and the second condo project developed by Related — to be constructed in the Hollywood/Hallandale Beach market during this cycle.
In 2013, the Related Group completed the 24-story Apogee Beach condo tower with 49 units on an oceanfront site at the intersection of South Ocean Drive and Hallandale Beach Boulevard. Apogee Beach sold at an average price of nearly $465 per square foot for a combined $58.9 million.
In Hollywood/Hallandale Beach market, seven new towers with nearly 1,000 units are currently under construction and a dozen additional towers with nearly 3,500 units are in the development pipeline, according to CraneSpotters.com.
The Related Group is developing two of those new condo towers — the 41-story Hyde Resort and Residences with 407 units that is under construction and the 43-story Hyde Beach House with 342 units that is actively preselling — that have been announced for the Hollywood/Hallandale Beach market.
Overall, the Related Group has at least 39 new condo towers with nearly 8,600 units in various stages of development or recently completed east of I-95 in South Florida during this cycle.
For preconstruction condo buyers, it is worth noting the Hollywood/Hallandale Beach market has more than 1,100 properties actively on the resale market at an average asking price of $318 per square foot as of Monday, according to data from the Southeast Florida MLXchange.
In the first three months of 2015, buyers purchased nearly 350 condo and condo-hotel units — an average of about 113 units monthly — at an average price of about $246 per square foot, according to the data.
At the sales pace of the first quarter of 2015, the Hollywood/Hallandale Beach market has nearly 10 months of units currently available for resale, according to the data.
A balanced market is considered to have about six months of unit supply. More months of supply typically suggests a buyer’s market, and less months indicates a seller’s market.
The unanswered question going forward is whether the relatively rich preconstruction condo prices being achieved in the Hollywood/Hallandale Beach market will ultimately result in higher overall resale values for Southeast Broward County.
Peter Zalewski is a real estate columnist for The Real Deal who founded Condo Vultures LLC, a consultancy and publishing company, as well as Condo Vultures Realty LLC and CVR Realty brokerages and the Condo Ratings Agency, an analytics firm. The Condo Ratings Agency operates CraneSpotters.com, a preconstruction condo projects website, in conjunction with the Miami Association of Realtors.