Daytona Beach Area Condo-Hotel Market. End of 2017

Daytona Condo-Hotel Market

Daytona Condo-Hotel Market in Daytona Beach Area.

This is the end of 2017 and it is time for us to look back at 2017 and by analyzing the statistical data, try to foresee the condo-hotel market in 2018 and, maybe, 2019.

For this report, we only use data about condo-hotels in Daytona Beach Area. New Smyrna Beach is not included, as well as Palm Coast.

Current Data

There are 13 condos on the Beachside, which are included in this statistical report.

117 units from $29,900 in Sea Dip to $379,900 in Ocean Walk.
6 Pending
3 Active Contingent
5 Contingent
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131 units total
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There are 2,448 condo-hotel units in 14 condo-hotel properties in Daytona Beach area

Sold Data

In the last 30 days 14 condo-hotel units were sold starting from $28K for a city view unit in The Plaza Resort & Spa.

157 condo-hotel units sold in 2017
147 condo-hotel units sold in 2016
146 condo-hotel units sold in 2015
139 condo-hotel units sold in 2014
136 condo-hotel units sold in 2013
156 condo-hotel units sold in 2012
133 condo-hotel units sold in 2011
125 condo-hotel units sold in 2010 starting from $17,000 to $270,000 for  2-bedroom unit in Ocean Walk

Summary

These are just numbers, but if you look at the dynamics, in 2010 sold priced started as low as $17,000. While prices were still low a year ago, they started from $23,500 for a small studio.

If you compare with the same period but with residential condos, you would see a significantly different numbers. Lowest asking price for a residential condo on the market now is $59,900 now, while the lowest price was $15,500 in 2010.

The prices did not go really high for condo-hotels. In 2010 the lowest price for a condo-hotel unit was $17,000, and today the lowest asking price is $29,900. Not really what one could expect in 8 years.

We are warming up, yet slow, but the direction and the trend is clear. Now the question is whether we will ever see the peak prices of 2005-2006, and if yes, when can we expect it.

Micro markets are not homogeneous, and condos usually start going up in prices before the condo-hotel market starts showing any activity. And condos are moving better now. The other consideration is that supply is not great. 117 condo-hotel units on the market is, probably, the lowest number I remember seeing ever. The number of condo-hotel units for sale at the very bottom of the market was about 300. In a “normal” market (whatever it means), 117 units for sale out of 2,448 is very low inventory, less than 5% of the total number of units. “Healthy” condo-hotel market inventory should be 170-172 units for sale, yet it does not create the boom, like in 2004. In Florida it is never a question whether it would happen. The question is when, and I can’t figure it out.

Well, would I be still doing it if I could?

Any indirect indicators? Yes, the area is experiencing growth, which started very recently. Cranes are back in Daytona. 2 new oceanfront condos are under construction, and this is the first time we say it after 2008. Another luxury beauty is coming in Daytona Beach Shores, they are doing the ground work now.

New hotels came and are coming, with Hard Rock Hotel opening in February, Protogroup’s two tower complex is moving fast. These are beachside projects. On the mainland Daytona One NASCAR project is shaping up at fast pace…

All these are multi-million dollar projects.

They see the future, which was not here just 3-4 years ago.

So, probably my estimation of growth of Daytona condo-hotel market is well based. It is very similar to condo market, and the only difference is that condos start a bit earlier.

About Jon Zolsky

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