How Much Has Dollar Boost Hurt Foreign Sales?

MIAMI—The rising value of the US dollar has been the topic of plenty of discussion in investment circles. Some are seeing fewer international buyers, at least on the condo front. Others say there is still plenty of action.

Craig Studnicky, principal of International Sales Group, sees sales dropping but is optimistic. Some of his clients include Trump Ocean Club Panama, Related Group, Swerdlow Group, and Rockwell Capital. GlobeSt.com caught up with Studnicky to assess the state of foreign buyers in Miami.

GlobeSt.com: Even though the dollar has risen overseas, how do you know that the market is still very strong? What indicators are you witnessing?

Studnicky: South American sales are off by 50% this year compared to the same time last year. While that is bothersome for Miami developers, the current buyer demand is still strong and increasing with high velocity. Demand will maintain sufficient sales to bring most existing unsold inventory to sold out status within the next 18 to 24 months.

GlobeSt.com: What countries are showing the most interest in your projects?

Studnicky: Some of the projects we represent include Echo Aventura, Crimson, Echo Brickell, Muse Residences, W Fort Lauderdale and Downtown Doral. Each of these projects has seen a tremendous interest from Brazil, Argentina, Venezuela, Colombia, Mexico and Peru. Our firm is also exploring new and emerging markets such as China, Ecuador and Chile. We have already witnessed a great deal of interested buyers from these countries. 

GlobeSt.com: You recently sold out Casa Costa by Related Group, how long was the sell out and what is the buyer make up?

Studnicky: It took two years to announce the sellout of this 395-unit project. The buyer profile of Casa Costa is something quite unique to the area. 

The new owners who will soon call this ocean view condominium home are from all over the world. We have buyers from Canada, France, Poland, Italy, Spain, Belgium, Turkey and Australia.

In addition, with the Latin American buyer market heating up, Argentineans have been the number one consumers of this master planned community with Venezuela and Brazil following close behind. Casa Costa also has buyers from Colombia, Chile, Peru, Uruguay and Ecuador. Casa Costa additionally welcomed South American investors interested in owning income-producing properties in South Florida.

These buyers purchased condos inside Casa Costa that had long-term leases in place. They are very pleased with their purchases as the rental market has tightened considerably and rental rates are now rising in East Boynton Beach.