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At least a dozen new South Florida condo projects in limbo amid changing market conditions
The future is in question for at least a dozen new condo projects that were originally proposed to be developed east of Interstate 95 in the tricounty South Florida region since this current real estate cycle began in 2011.
A growingly bearish sentiment for South Florida’s previously booming preconstruction condo market has emerged since the last winter tourism season ended and prospective domestic buyers returned north for the summer.
In their absence, developers are dealing with international investors who increasingly find themselves priced out of the South Florida condo market as preconstruction prices have surged to reflect higher construction costs and foreign currencies have fallen against the U.S. dollar as the global economy has slowed.
On a year-over-year basis, the dollar has risen significantly against the currencies of the countries from which the bulk of South Florida’s international buyers originate.
For example, the dollar is up about 11 percent against Argentina’s peso, 29 percent against Brazil’s real, 30 percent against Colombia’s peso, 19 percent against the euro and 40 percent against Russia’s ruble as of July 15, according to the currency conversion website OandA.com.
It is against this backdrop that more and more developers are opting to revise their original plans for preconstruction condo projects or even attempting to sell off their development sites.
The latest project in limbo is the planned 27-story Gulfstream Park Tower that was slated to feature 182 units in the expansive mixed-use retail and gambling facility in Hallandale Beach just north of Aventura.