23 Biscayne Bay

Developers have proposed 20 new condo towers in the tricounty region of Miami-Dade, Broward and Palm Beach counties, despite the approximately 4,700 existing units that remain unsold from the last real estate boom, according to a recent article from CondoVultures.com.

The proposed developments, fueled by a surge in international cash buyers, would create more than 4,000 new units, nearly doubling the inventory of unfilled spaces.

Two of the proposed towers – the 23 Biscayne Bay project in Greater Downtown Miami and the Apogee Beach tower in Hollywood, Fla. – are already preparing for construction.

“It is unclear how many other proposed towers could get developed in the short term as construction financing is challenging – and expensive – to secure,” the article stated. “To overcome the financing hurdle, most of the newly proposed projects are requiring prospective buyers to commit to deposits – to be paid in phases – of as much as 80 percent of the preconstruction contract price.”

That is quadruple the amount required of preconstruction buyers during the most recent real estate boom, when deposits were generally around 20 percent.

According to CondoVultures.com, the South Florida real estate boom that began in 2003 produced nearly 49,000 units, and as of Sept. 30, 2011, less than 10 percent remains unsold.