Miami’s luxury condo market may be soft, but it’s not quite at the point where investors are scrambling to pick up property at big discounts.
Real opportunity in Miami will come “when the weak start yelling uncle,” Richard LeFrak told Bloomberg on Wednesday.
“I would say half the condo buyers in that market are overseas buyers,” he said. “They mostly buy for investments, some buy for use as well. The preponderance come from Europe and South America. Those currencies are really damaged right now, so obviously business is a little softer down there because of it.”
LeFrak, head of the LeFrak Organization, cited the timing of properties he bought in South Florida between 2009 and 2011, including the site of the now-completed 1 Hotel & Homes South Beach. The New York-based developer advises President Donald Trump on infrastructure.
He also said apartment rents in New York City would have to fall by 15 percent for a flood of new supply to be absorbed. [Bloomberg] – Katherine Kallergis