More Pressure on the Brickell Condo Market in 2018
1,200 New rental condos are about to hit the Brickell Market
Last week we wrote a blog on the Brickell condo market and what would happen in 2018. We mentioned that those who are looking to sell should be pricing their units very competitive. The core message of this blog was that the inflated prices and extremely high levels of inventory are putting Brickell condo sellers in a unfavorable position. As the market is unlikely to see a fast recovery (not within 2 years) and prices need to adjust by 15%-20%, we advise sellers to be ahead of the game and to adjust their prices now by 10%-15% instead of waiting for another year while price are further decreasing.
As if this isn’t alarming enough for Brickell sellers, there is more to come. Those who are renting their units or are looking to rent their units are seeing increased competition by two brand new rental condos Panorama and Solitair.
The Brickell Rental Market under pressure
With the simultaneous delivery of almost all condos that were built in the last cycle, many units entered the rental market and had to be absorbed. Now two brand new rental projects are added to the market that offer a combined number of 1,200 units to the market.
Panorama is a 868 foot tower supposedly delivering its rental units any day soon to the rental market with rental prices starting at:
- $2,500 per month for a one bedroom plus den (Approx. 1,100-1,200 SF)
- $2,800 to $3,000 per month for a two bedroom
- $6,000+ per month for a three bedroom
The Panorama Rental Tower in Brickell
Solitair Brickell will open its door at the end of this year (2018) and is offering more affordable prices than Panorama.
- Studios will range from $1,600 to $1,900 per month
- One bedrooms from $1,850 to $2,755 per month
- Two bedrooms from $2,500 to $3,000 per month
Both towers are said to provide a condo approval in 48 hrs (this is normally approx. 15 working days) and deposits for Panorama are only half a months rent while Solitair asks for $350, $500 and $700 for respectively a studio, a 1 and a 2 bedroom.(this is normally a full month)
The current market absorption of Brickell rental condos. 1,200 Condos will be added to this inventory!
The competitive prices of these two new towers as well as their almost unbeatable approval time and deposits are putting some pressure on the current market. Many Brickell owners could not sell their Brickell condos for the desired price and tried the rental market for better luck. With this increased competition they are getting yet another hit.