Why Miami’s new construction market is behind
Miami is in a slump, and someone needs to do something about it.
At a time when it seems as though every market is in a bubble, demand for luxury pre-construction condominiums in Miami is not. A strong U.S. dollar is de-incentivizing foreign investors, who often prop up the Miami real estate market, from pouring money into the city. To make matters worse, according to Jerry Iannelli of the Miami New Times, the rate of “listings-for-losses” has been steadily rising. In essence, those looking to buy new condominiums and flip them are netting losses up to $4.75 million.
New designer buildings are going up regularly, yet there is little demand to absorb them. There is currently over 14 months of inventory in the new condo market when a healthy market generally only has 6. This glut in supply is exerting substantial downward pressure on unit prices. Not only does this adversely affect sellers but it poses an information issue to buyers. With all the available inventory, agents struggle to communicate options to their clients and buyers are left to make an uninformed decision.
To make matters worse brokerage firms rely on many communication mediums to close a sale. Sending and receiving multiple messages and links from sellers and buyers. Messages and links carrying fragmented information. In new construction real estate, project information is distributed through brochures, Dropbox links, and phone calls. This has proven to be an outdated system that is not only inefficient but also exposes all parties to threats such as cybercriminals. Project links have been notoriously associated with virus’ that can make a brokerage firm go out of business.Cybercriminals have been known to use a project’s Dropbox to access proprietary project information and ultimately steal client funds.
“One of our agents got a fake dropbox link for a new construction project he was pre-selling and he was hacked. This could have put my brokerage firm out of business if we didn’t let everyone of my contacts know I was hacked.”
-Jorge G, Realtor/Managing Broker
Brokerage firms want to make money and not worry about cybersecurity risks from using dropbox links to distribute information on a new condo.
This is where Nukondo comes in. Nukondo’s platform solves the information issue by centralizing data on all projects in the market in a user-friendly application. Agents can acquire info on projects such as amenities, floor plans, renderings, and much more which they can pass on to their clients or encourage them to download the app themselves directly. Agents can also view which specific units are still available for sale which allows them to provide the most up to date buying options for their clients.
Navigating the Miami pre-construction market is a complicated and arduous task. The plethora of options and loosely distributed information makes it difficult for projects to market themselves, agents to do their job, and buyers to make an educated decision. Nukondo hopes to solve this problem and help form the pre-construction market that all parties deserve.
Nukondo delivers digital products that create an efficient marketplace for new condominiums in world-class buildings around the globe. It provides a platform for real estate developers and their master brokers, to keep information about their projects updated and accurate in one place. It standardizes and distributes this information globally so buyers and their agents can gain access to these projects providing the tools decide which condominium is most suitable for their needs. We believe that through transparent information people are empowered to make better decisions.For further information, please visit www.nukondo.com, the App Store, or email email@example.com to learn more about Nukondo corporate services.