The condo market is thriving in Miami, Florida as holiday homes are being snapped up at the rate of 500 a month.

Condo Vultures reports this is the impressive amount of apartment traded in Greater Downtown Miami each month between April and June this year.

This figure represents a 105 percent increase compared to the 241 units per month average in the second quarter of 2009.

Transactions for nearly 1,500 units with 1.8 million square feet of saleable space generated a gross sales amount of $584 million, or $333 per square foot.

The flurry of sales activity has reduced the number of new condos under developers' control in Greater Downtown Miami to less than 5,100 units, according to the report.

The unsold new condos represent about 23 percent of the total inventory constructed in a 60-block stretch of Greater Downtown Miami between 2003 and 2010.

In July 2009 around 40 percent of the new condos in the same submarket were unsold.

“In the last year, the landscape of the Greater Downtown Miami new condo market has begun to take shape,” said Peter Zalewski, a principal with the Bal Harbour, Florida-based Condo Vultures LLC.

“Nearly 3,800 new condo units have traded in the last 12 months as developers have cut pricing in some cases as much as 51 percent.

“Based on our early research, four-out-of-every-five-condo deals is being transacted in cash. This preponderance of all-cash buyers raises the question of how many of the new owners actually plan to rent the condos out to tenants.”

In the first six months of 2010, more than 2,200 new condo units have changed hands in the 82 new projects constructed since 2003.

Of the 82 Greater Downtown Miami projects constructed in the last seven years, 38 condominiums are completely sold out and an additional 19 projects have sold between 75 percent and 99 percent of their units.

An additional four projects have sold between 50 percent and 74 percent of their inventory.

Of the remaining 21 new projects, there are still seven condominium complexes with less than five percent of the units sold.

The remaining 14 new projects have sold between 10 percent and 38 percent of their respective inventory, according to the report.

Overall, nearly 17,200 new condo units have sold in Greater Downtown Miami since 2003 for $6.7 billion, or $376,500 per unit.

The pricing works out to an average of more than $336 per square foot, according to Condo Vultures.

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