over 3 years ago

The condo tower collapse in Surfside could exacerbate the division that already exists between the tiny Florida town's new luxury buildings built for the global elite and those constructed decades ago for the middle class. It is already creating headaches for some small businesses.

The town has seen the construction of numerous new condos in recent years, where large oceanfront units exceeding 3,000 square feet (280 square meters) with modern pg amenities can fetch $10 million and up. Meanwhile, small units of 800 square feet (75 square meters) in neighboring condo buildings constructed decades ago can be had for $400,000.

Ana Bozovic, a South Florida real estate broker, said the June 24 collapse of the 40-year-old, middle-class Champlain Towers South will exacerbate this division. At least 36 people were killed and more than 100 remain missing.

Bozovic said many buyers will now avoid older buildings, not just because they fear they might also fall but because of repair costs the Champlain South owners faced before the collapse: $80,000 to $300,000 per unit. These factors will decrease older condos' value, while prices in luxury buildings will continue to skyrocket.

“The holders of capital who are moving here were never considering older buildings. They are buying newer structures and preconstruction, so I don't see this putting a damper on their appetites," said Bozovic, founder of Analytics Miami. "What this will do is further depress sales of older structures and further bifurcate the market.”

Before the Champlain Towers South tragedy, Surfside, with about 6,000 residents on a half-square mile (1.3 square kilometers) of an island off Miami, was one of South Florida's most anonymous municipalities — though in January Ivanka Trump and Jared Kushner rented a luxury. condo in a new building two blocks from the collapse.