Investment groups have boosted the condominium market in South Florida by reselling thousands of units purchased during the housing bust

Florida's condominium market has been boosted by the emergence of bulk buyers who are currently reselling a substantial number of coastal residencies purchased during the housing bust. A recent report suggests investment groups have sold over three thousand such apartments situated in Southern Florida, which has helped stabilize the industry.

Bulk buyers initially rented out the units that were previously involved in the process of foreclosure before capitalizing on the recent value increases by unloading them for modest sales. The majority of sales were centred in Miami-Dade County before a shortage prompted investors to find deals in Palm Beach and Broward counties.

South Florida's inability to satisfy the recent demand for available condos has even led to developers outlining new plans to build thousands of new units in the area. “Without bulk buyers, we would not be talking about all this construction,” Peter Zalewski, head of a consulting firm in Bal Harbour, admitted. The plans are set to take shape over the next few years.

Trump Hollywood, Las Olas and 2700 N Ocean Drive are among the locations to have benefited the most from larger bulk sales. All 200 units at Trump Hollywood have now sold out, with Lionheart Capital, a leading private equity firm located in Miami, recently announcing that it has recouped over $100 million in sales after purchasing 146 ocean front units only two years ago.

A new law passed in the state in 2010 that limited the liability for investors protected bulk buyers purchasing condos during the bust. Florida’s governor Rick Scott opted to extend that law until 2015 earlier this year. The Distressed Condominium Relief Act came to fruition in order to bolster the state's foundering real estate market and was due to lapse earlier this month.