Has Miami’s Spectacular Speculative Market Totally Chilled?

Some of Miami’s biggest condo projects have been cancelled. Among them are the Onyx 2, Ice, and possibly sections of the $1 billion-plus Midtown Miami.

Should we be surprised?

Diamond

Some of Miami’s biggest condo projects have been cancelled.  Among them are the Onyx 2, Ice, and possibly sections of the $1 billion-plus Midtown Miami. 

 

Should we be surprised? 

 

After all, there was so much flipping going on  down there that estimates were up to 80 percent of sales of some condo projects went to speculators.  Those were buyers who had no intention  of actually moving in or renting out. 

 

Lewis Goodkin, a Miami economist and [tag-tec]real estate[/tag-tec] analyst, says it wasn’t  reality realty.  Or in other words, it was fake real estate.

 

I guess what he was getting at is that Miami, once one of the most spectacular  speculative [tag-self]markets[/tag-self] in the country, was  more Zirconium  than diamond.  

 

But how could the most brazen of flippers have passed up its temptations?

 

When condos  doubled and even tripled in value during a few short years it could certainly get  everyone’s attention. Even the most staid and conservative amongst us had to take an extra look. 

 

But do the  falling  prices as well as  an iced Ice and axed Onyx   mean Miami is doomed?

 

It’s still a very good market.  It’s just different.  Or if we really want to be honest, it’s now more down- to- earth.  Which is the way real estate really should be anyway.

 

However, Miami still has a lot going for it; primarily  fresh money from  abroad. 

 

Reports are 20 percent of buyers are Europeans spending very strong euros and 13 percent are  South Americans.

 

What’s my point? 

 

It’s more of a sermon. 

 

Unless you have the stomach for it, stay out of [tag-ice]pre-construction[/tag-ice].   It’s not for the faint hearted. 

 

  

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