Categories
Real Estate

Foreign Buyers Still Boon to Florida Housing Market in 2012, Especially Miami Dade County

Miami is number one for international investors and buyers of residential real estate in the US. That was the main message from Teresa King Kinney, chief executive officer of the Miami Association of Realtors, who spoke to the 18th Miami International Real Estate Congress this week at the Biltmore Hotel this week. Much of her data came from the Profile of International Home Buyers in Florida 2012, a report from National Association of Realtors that covered the 12-month period ending June 30, 2012.

Of all the states, Florida accounted for the largest share, 26% of total US residential home sales to international clients, according to the NAR study. The state, and Miami-Dade County in particular, attract a lot of interest from foreign buyers for a number of reasons, says Kinney: Prices tend to be lower than for similar residential properties in their home countries, she said. Plus, “our prices are back to where they were ten years ago,” for the most part, “so it is a great time to buy,” says Kinney. Of course price is not the only attraction, she says. By choosing Florida, foreign investors are trying to achieve geographic diversity and safety for their investments, notes Kinney.

Among foreign buyers, Canada is number one in Florida, accounting for 31% of those foreign buyers, according to the NAR study, while Brazil accounted for 9% and Venezuela, 7%.

While Canadians are the biggest international customers for Florida residential real estate, they tend to buy lower-priced properties than some other national groups. For example, while their median price range was $100,000 to $199,999, Brazilians’ residential purchases had a median price range of $200,000 to $299,999, according to the NAR study. And the good news about Brazilian buying habits is that half of their residential purchases are in Miami, said Kinney.

“International home buyers always buy for above-median prices,” said Kinney. And also important, according to the NAR study, 82% of foreign buyers paid cash with no mortgage financing.

Cash sales in Miami-Dade County reflect a strong international presence, according to the Miami Association of Realtors. In fact, 62.4% of total closed sales in September 2012 were all-cash sales. They accounted for 43% of single family and 76% of condominium closings. Nationally, all-cash sales accounted for 28% in September, according to the MAR.

Although foreign buyers are a boon to Miami-Dade residential real estate, said Kinney, the current supply of properties is running low. In August 2008, there were about 46,000 residential properties on the market in the county, but as of August 2012, there were between 11,000 and 12,000 properties available. “We need more listings,” said Kinney. “We only have about a four-month inventory.”




Source: World Property Channel
by Hortense Leon

Categories
Architecture Development Real Estate

Hallandale approves condo king Jorge Perez’s $100 million, high-rise Beachwalk project

Hallandale Beach commissioners gave final approval Wednesday night to developer Jorge Perez’s plan to construct Beachwalk – a $100-million, 31-story hotel-residential complex on the Intracoastal Waterway.

The proposed 305-foot tower at 2600 E. Hallandale Beach Boulevard will contain 216 two-bedroom hotel-condominium suites, 84 residential units, a 1,225-square-foot restaurant and a five-story parking garage.

Commissioners also gave approval for Perez’s Related Group of Florida to spend $2.5 million to create a lush park, with a two-story restaurant and concessions, at the city’s nearby oceanfront North Beach Park.

The group will manage the facility, but the city commission said the public would still have access to the oceanfront. The term of the lease was reduced from a proposed 30-year agreement to 15 years.

In approving the project, the developer received various zoning exemptions and concessioners, including a giveway by the city of more than a third of an acre of right-of-way along portions of Diana Drive to allow for more residential units. – William Gjebre

June 7 – Hallandale Beach commissioners unanimously gave a tentative green light Wednesday night to Miami developer Jorge Perez’s plans to construct Beachwalk — a $100-million, 31-story, hotel-residential complex on the Intracoastal Waterway where the popular Manero’s restaurant once stood.

At the same time, commissioners put off until later this month a vote on a another aspect of the deal that would give Perez long-term control of a nearby prime parcel of city-owned oceanfront property to develop as a park with a restaurant.

The proposed 305-foot tower, at 2600 E. Hallandale Beach Blvd., would contain 216 two-bedroom suites that could serve as hotel rooms or condominiums, as well as an additional 84 apartments dedicated to being condominiums only. Plans include a 1,225-square foot restaurant and a five-story parking garage.

Final approvals are to be voted on June 20.

The developer, PRH-2600 Hallandale Beach LLC, is a Miami company controlled by Perez, chairman of the Related Group of Florida. If finally approved, the developer will receive various zoning exemptions and concessions, including a giveaway by the city of more than a third of an acre of right-of-way along a portion Diana Drive to allow for more residential units.

Local activist and commission candidate Csaba Kulin complained the project was too massive and that the city should not be awarding a 30-year contract for the development of the city’s one-acre oceanfront parcel.

“I’m against any giveaway of the beachfront area,” said candidate Kulin.

Kulin believes the deal would give another nearby Perez development access to the ocean and the developer control of 91 public parking spaces at the nearby residential Beach Club.

Kulin previously urged commissioners to defer the tower project because many of the residents are snowbirds and won’t be back in town until the fall.

“The problem is they are trying to shoehorn too big a building on a small site,” Kulin said.

The total site is 1.68 acres, including the land from Diana Drive.

Mayor Joy Cooper said earlier that negotiations with the developer were continuing.

“A lot of things can change,” said Cooper said, who noted that a parking shortage at the tower might not be as severe as it appears.

Cooper said she was not necessarily concerned about Perez’s group developing and managing the city’s North Beach park property, especially since he will pay for the improvements in accordance with the city’s master plan for parks. The city will be paid a percentage of the revenues from the restaurant and other concessions made available in the park, she said.

Cooper said Hallandale Beach needs new hotel space, especially at the oceanfront to attract tourists and visitors. The restaurant in the park will provide a wonderful oceanfront setting for dinners, she added.

Commissioner Keith London, who is running against Cooper, agreed.

“There is a need for quality hotel space in Hallandale.”

Perez, known as Miami’s “condo king,” did not appear at Wednesday’s meeting to talk about Beachwalk.

His Fort Lauderdale attorney, Debbie Orshefky of Greenberg Traurig, told commissioners, “We are confident that it will be successful.”

London and other commissioners hope to extract some concessions before the final vote, including a pledge from the developer that the beach park project will be completed first. Another request: regular monitoring of parking around the facility.

Residents who spoke at the meeting were equally divided on both sides of the project.

City staff endorsed the project. London, however, said he wasn’t happy that it took nearly two years to reach the commission, and that some agreements between the city and developer were incomplete.

City documents say the developer has vowed to spend up to $2.5 million to reshape the rundown North Beach park area with a two-story, 4,000-square foot structure to include the restaurant, restrooms and changing facilities for both beach goers and diners. There would be an additional 3,000 square feet of patio area facing the ocean.

Plans for the full-service restaurant call for indoor seating for 80 persons and outdoor seating for 100. Patrons could rent beach chairs, umbrellas, paddle boards and canoes. A volleyball area is planned.

For the first 10 years of the 30-year lease, the city would collect a minimum of $5,000 a month or 2.5% of gross park concession receipts, whichever is greater. The percentage would go up a notch to 3% in years 11 through 20, and rise another half-percent to 3.5% from years 21-30.

The concessionaire would pay all operating and maintenance for the park facility, and also give the city $200,000 to maintain other city parks.

Prior to issuance of the first building permit for the high-rise tower, the developer would give the city another $550,000 — $250,000 to be used for public improvements and $300,000 for improvements to affordable housing.

By William Gjebre, BrowardBulldog.org
William Gjebre can be reached at wgjebre@browardbulldog.org
Hallandale approves condo king Jorge Perez’s $100 million, high-rise Beachwalk project

Click below to learn more about Beachwalk by Pininfarina

Beachwalk offers 2 and 3 bedroom residences featuring Condo Hotel, great amenities and exclusive services.

Beachwalk by Pininfarina

Categories
Investment Real Estate

Miami, Dubai and London Among Top Global Cities Enjoying Double-Digit Price Growth in 2012

Miami, Dubai and London Among Top Global Cities Enjoying Double-Digit Price Growth in 2012

Courtesy of worldpropertychannel.com
According to a new Global Cities Report by London-based real estate consulting firm Knight Frank, fifteen of the 26 cities tracked by the Prime Global Cities Index (58%) recorded flat or positive price growth in the year to September, but over the last quarter 20 of the 26 cities (77%) have seen flat or positive growth – indicating an improving scenario.

The index now stands 18.7% above its financial crisis low in Q2 2009 with Hong Kong, London and Beijing having been the strongest performers over this period, recording price growth of 52.9%, 45.4% and 39.5% respectively.

Five cities recorded double-digit price growth in the year to September; Jakarta, Dubai, Miami, Nairobi and London – a city from each of the five key world regions.

Knight Frank Global Cities Report Highlights for Q3, 2012

The index rose by 1.1% in the three months to September, down from 1.4% last quarter
Prime prices across the 26 cities tracked by the index increased by 3% in the 12 months to September
Cities in Europe remain the weakest performers, recording a fall of 0.5% on average in the last 12 months
Jakarta (up 28.5%) was the strongest performer in the year to September
Economic uncertainty together with few strong-performing alternative asset classes is strengthening demand for luxury bricks and mortar

Dubai UAE – Courtesy to worldpropertychannel.com
Although Asia heads the pack – Jakarta recorded 28.5% annual growth – the results this quarter suggest that demand for luxury homes is only loosely linked to the strength of regional economies (Asia Pacific has only two cities in the top ten compared to Europe’s three). Instead, the flow of international wealth and the attitudes of HNWIs are increasingly influential.

Cities such as Dubai, Miami, Nairobi and London are increasingly considered investment hubs for HNWIs in their wider regions. In the wake of the Arab Spring, Dubai has been seen as a relative safe haven for MENA buyers while Venezuelan and Brazilian investors have looked to Miami to limit their exposure to domestic political and economic volatility.

Not all prime residential markets are benefitting from the global economic uncertainty. In Paris, although prices held firm in the third quarter, sales activity was muted as buyers of all nationalities adopted a “wait and see” attitude. Vendors are unwilling to reduce prices until there is greater clarity from President Hollande and the Eurozone leaders in relation to the debt crisis.

Asia’s prime markets look to be entering a period of more moderate growth due in part to the regulatory measures aimed at cooling prices and improving domestic affordability.

London UK – Courtesy of worldpropertychannel.com
James Price of Knight Frank’s International Residential Development team tells World Property Channel, “Aside from London, it would appear the other strong performers are either those established international markets that experienced a lull but are now ‘kicking on’ again (e.g. Miami, Dubai) or those that could be described as second tier international cities – strong established markets, but not global ‘gateway’ cities (e.g. Zurich, Vienna, San Francisco), where interest has driven price rises from a lower base.”

James continues, “While some of the more traditional prime second-home markets are recording negative movement, this should not disguise their long-term popularity and strength, instead it suggests a cooling from previous higher levels.”

Teresa King Kinney, CEO of the Miami Association of Realtors commented, “Miami is a truly global city that has experienced the positive impact of international buyers and investors unlike any other. Miami’s global appeal resulted in a rapid and strong recovery that yielded an all-time sales record in 2011 and extraordinary inventory absorption. Such demand has fueled more than 10 months of consecutive double-digit price appreciation in the Miami residential real estate market. More importantly, Miami’s position as a leading global market will continue to generate demand from both U.S. and foreign buyers long into the future, adding great value to our city, our market, and our properties.”

Source: World Property Channel
By Michael Gerrity

Categories
Development Real Estate

Brickell CitiCentre by Swire Properties

Brickell CitiCentre

New York City has Rockefeller Center. San Francisco boasts the Embarcardero Center. Now, Miami could have its version of a vibrant urban gathering place called Brickell CitiCentre.

Hong Kong-based developer Swire Properties broke ground on June 2012 on its massive Brickell CitiCentre project in downtown Miami, in what could be the beginning of substantive westward expansion across South Miami Avenue. The nine-acre, $1.05 billion project is planned to include two office buildings, two residential towers, a hotel, a wellness center, service apartments and 520,000 square feet of retail and entertainment space.

In March, Swire announced $140 million in financing for the project from HSBC Bank. The first phase is expected to be completed before 2015.

“The most important thing out of the many important things with this project is that they have moved progress toward the west,” Miami Mayor Tomas Regalado told The Real Deal. “Miami Avenue was just an imaginary line that developers wouldn’t cross to the west, and what this is doing to West Brickell is making it explode as a potential center for real estate and construction.”

In recent years, some developers have begun crossing the “imaginary line.”

Canada-based Ivanhoe Cambridge’s Mary Brickell Village has become a bustling retail center, and Jorge Perez’ Related Group already has 92 percent of units under reservation for its planned Millecento Residences just a few blocks south on South Miami Avenue.
“[Swire] is going to start construction right now, and this will send a message,” Regalado said. “I promise you that all of this area, in the next two years, is going to be changed.”

The project’s first phase is slated for completion in the first quarter of 2014.

But while CitiCentre represents a shift westward, it’s also a significant sign from the East.
Wednesday’s groundbreaking included a traditional Chinese blessing, a ceremonial beginning to what the city hopes could be increased growth in investment from Asia (which began with Genting’s high-profile purchase of the Miami Herald’s headquarters on Biscayne Bay).

“We hope it’s transformational,” Swire Properties CEO Martin Cubbon said. “We’ve done lots of projects like this in Hong Kong and China, and we feel very confident about this city.”

The distance between East Asia and Miami continues to represent something of a roadblock for investment, he said, but Miami is starting to be perceived as a potential investment target in Asia.

“It’s a long way from Asia, but I think [the perception] is changing,” he said. “When people who know us in Asia see what we’ve done, they’ll take note. People from Beijing and Hong Kong will like Miami — so I think you will see the beginnings of more investment. How much there will be will depend on the opportunity.”

By Alexander Britell
The Real Deal

Categories
Economy Projects Real Estate

Miami pending home sales rise 15% year on year

Miami pending home sales rise 15% year on year

Pending home sales in Miami are continuing at record high levels, up 15% year on year during the month of August, according to the latest data from the Miami Association of Realtors.
The number of single family and condominium listings that pended in August increased 26.3% and 6.28 percent respectively compared to August 2011.

‘Pending sales in the Miami real estate market remain at historically strong levels, particularly when considering the current shortage of local housing inventory,’ said Martha Pomares, chairman of the board of the Miami Association of Realtors.

‘Pending sales continue to reflect strong demand compared to record sales levels in 2011. This activity is driving home prices to rise sooner and stronger than expected,’ she added.

She also explained that increased pending sales are an indication of increased future sales. A sale is listed as pending when a contract is signed but the transaction has not closed, though the sale usually is finalized within one or two months of signing.

Total cumulative pending home sales, including single family homes and condominiums, in Miami-Dade County currently are 1% above what they were a year ago, up from 11,915 to 12,222, but 1.5% below what they were the previous month, down from 12,210.

Pending sales of single family homes were 10% above what they were a year earlier, up from 4,941 to 5,435, and 0.5% above the previous month, when pending single family homes sales totaled 5,407.

Miami pending sales of condominiums were 5.5% lower than they were a year earlier, down from 6,974, and 3.1% below what they were the previous month, down from 6,803 to 6,587.

The Miami real estate market has experienced rising demand from international buyers over the last year,’ said Patricia Delinois, residential president of the Miami Association of Realtors.

‘Foreign buyers have been and continue to be an instrumental factor in strengthening the Miami real estate market unlike any other in the nation. As a global city, Miami will continue to draw demand from international buyers and investors long into the future,’ she explained.

Nationally, the Pending Home Sales Index, a forward looking indicator based on contract signings, rose 2.6% to 99.2 in August from 101.9 in July, according to the National Association of Realtors. The index is 10.7% higher than the 89.6 index reported in August 2011.

Source: Propertywire
Miami pending home sales rise 15% year on year

Categories
Economy Investment Real Estate

4 Reasons Why Foreign Investors Are Keen to Invest in Miami Real Estate

4 Reasons Why Foreign Investors Are Keen to Invest in Miami Real Estate

If current trends are to be analyzed, you will see a substantial rise in foreign investment in the Miami real estate boom. Market experts believe that high-end buyers from foreign countries are helping Miami real estate come out from its dark days. These are the reasons for these foreign investors to invest in the real estate market of Miami.

1. Low Prices

The city of Miami is still recovering from its rough patch after the country wide economic down-slide. This has caused the prices of properties to be at their all time low. The developers and investors of Miami Beach condos are desperately trying to remove the large number of apartments from their hands by offering low prices. This has seen a large wave of foreign nationals buying these properties. These high-end condos and apartments may not be exactly cheap for the US citizens, but these foreigners find these prices cheaper than the price of property back home. Thus, they are rushing to buy their own properties in the city.

2. Vacation Homes In Beautiful Locations

Miami is a beautiful place with the sun, beach and sand. It is an ideal place to set up vacation villas and homes. This is one reason for rich people from other foreign countries to come and invest in beautiful Miami Beach condos, facing the clear blue ocean. These investors are rich and price is not a factor for them. What they want is a villa or condo that meets their basic necessities and demands and with developers eyeing rich buyers there are plenty of expensively done high-end condos that these people can invest in.

3. Better Livelihood In The States

United States has often been the country where people want to migrate to for a chance at a better lifestyle. These foreign nationals upon arriving in the country invest in properties. Majority of the sale in Miami is in the residential market where these investors are spending all their money. The USA has a trustworthy legal system which places a lot of importance on property rights and these people feel that it is the safest place to invest their money in.

4. Low Interest Rates

With the Federal Reserve keeping the interest rates low to attract foreign investors, investors and developers from Japan, China, Germany and Russia are coming in. These investors feel that United States that is recovering economically is a safe market for their investment. Moreover, investing in projects in Miami where the real estate market is going through a boom, they will be able to gain more profit than in investing in their own countries.

Miami is one of the most popular cities in the USA and getting an opportunity to buy property in this city is not something that most foreign investors would like to give up. Property prices cheaper than their home country and the benefit of low interest rates are responsible for large scale foreign investment.

By Brenda Lyttle
http://www.business2community.com