2018 Look Ahead: What to Expect for Luxury Condo Market
As the new year approaches, we are looking ahead at what to expect in various real estate markets and sectors in 2018. First up, the South Florida luxury condo market.
Q: You recently sold out your luxury condo project on Fort Lauderdale Beach—do you expect sales momentum for luxury condos in South Florida to continue in 2018 or will there be a slowdown?
Arthur Falcone: We could potentially see a slowdown because of lenders, not a lack of buyers. The slowdown on luxury condos started about two years ago, and because of that, lenders have pulled back dramatically on financing new condo projects. That’s ultimately causing problems for developers and resulting in an additional slowdown.
Q: Is there a sweet spot in the condo market right now?
Arthur Falcone: The sweet spot is in amenity-rich developments—that includes both the actual buildings and the surrounding communities. Our Miami Worldcenter project is in the middle of downtown Miami where people can live, work and play. They have the best shopping and restaurants plus museums, the performing arts center and sporting games and arenas. Everything is walkable. If you’re under $800/square foot in a great, amenity-rich area, that’s the sweet spot.
Q: Chinese buyers have been active at Paramount Miami Worldcenter—do you see an influx of Chinese buyers coming to Miami in the year ahead?
Arthur Falcone: The reason we’ve seen so many Chinese buyers at PARAMOUNT Miami Worldcenter is because we’ve actively sought them out by going to China every month. That being said, right now both Orlando and Miami International airports are considering adding non-stop flights to China. If that happens, there will definitely be an influx of Chinese buyers.