Prices could rise and inventories fall short of demand in downtown Fort Lauderdale and neighboring beaches if rents continue to rise and more condominiums aren’t soon built, Condo Vultures principle Peter Zalewski said in a report released June 1.
The downtown Fort Lauderdale condo market presently has fewer than six months of inventory available, a condition that could give rise to a seller’s market with prices on an upward trajectory.
“The prospect of rising prices – and potentially even bidding wars – for condo units in the Downtown Fort Lauderdale and Beach market is possible,” Zalewski said in the report.
“Given the lengthy lead time necessarily for new construction, the Downtown Fort Lauderdale and Beach market could be at the mercy of demanding sellers sooner than most people would probably think,” he said.
That could depend on the fate of 4,000 proposed rental units and whether, upon completion of building, they are instead sold as condos.
The average asking price for a resale condo in downtown Fort Lauderdale and the neighboring beaches is more than $370 per square foot, a 45 percent leap over the $255 per square foot average during the first quarter of this year, according to the report. [CondoVultures.com] –Emily Schmall