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Foreign buyers face higher prices for Miami condos
Foreign investors — the lifeblood of South Florida’s condo market for the last five years — are finding it increasingly expensive to buy new and existing units east of Interstate 95 in the tricounty region of Miami-Dade, Broward or Palm Beach.
For international investors, the increased costs associated with buying resale condos or preconstruction units in South Florida is the result of a combination of factors, including the resurgent tricounty real estate market combined with the strengthening U.S. dollar.
Gone are the opportunities of recent years when units in South Florida could be acquired in cash transactions at prices below the costs to build — or replace — these same condos.
Adding to the growing sense of sticker shock in the South Florida condo market is the fact the currency exchange rates of several key countries from which many of the foreign investors originate from have plummeted in the last year.
A quick glance at the currency exchange website OandA.com shows the U.S. dollar has gained value against most currencies in the Americas and Western Europe.
Currently, the mean asking price of a condo resale unit located east of I-95 in South Florida is about $355 per square foot, representing an 88 percent increase over the mean transaction price of $189 per square foot at the bottom of the last real estate crash in 2009, according to data from the Southeast Florida MLXchange.