HOW IS THE MIAMI REAL ESTATE MARKET?
Miami real estate is back in the headlines. After all of the catchy ones about the meltdown in 2008 and 2009, we are now experiencing a time of record sales in the luxury segment of the market. It seems that every week there is a new record being set – after the penthouse at the Setai, which sold for more than $3,000 a sq ft, shattering all previous records for Miami real estate, 2 penthouses were sold at the Continuum South and Continuum North, and one at the Icon South Beach.
The luxury condo market had held up quite well during the turbulent times and is showing clear signs of recovery in 2011 to date. No fewer than 273 units asking $500,000 or more re-sold in the first four months of 2011 alone in Miami Beach, Bal Harbour and Sunny Isles. If the current pace of sale continues, 2011 will be the best year in terms of number of units sold since 2006. There is still inventory on the market, and good deals will certainly continue to be available in 2011, but luxury condo prices have probably corrected about as much as they will, and in many buildings, have come off their 2009 lows.
This will continue to hold especially true for South of Fifth – the exclusive neighborhood located at the tip of South Beach, which has received a lot of buyer interest in 2009 and 2010, and which, if the current pace of sale continues for the rest of the year, will set set a record for sales volume in 2011. The reason for that is that supply is relatively constrained – there are 7 high rise luxury condominium buildings – Apogee, the 2 Continuum Towers, Murano at Portofino, Portofino Towers, Murano Grande and Icon South Beach. Because of zoning restrictions, no buildings taller than 75 feet will be built in the area. That means that what is currently built represents the majority of the supply for the future. Demand, on the other hand, is likely to remain strong – both from US and international buyers. The buyers who purchased apartments in these buildings over the past couple of years are mostly end users who are buying a second (or third or fourth) home, who plan on holding on to and enjoying their apartment for a few years, and who pay cash.
The story is different for single family homes – the sale activity there has been significantly slower, and the inventory is substantial. We expect there will continue to be great opportunities to own a luxury waterfront home for a relative bargain price in 2011.
ABOUT MIAMI AND MIAMI BEACH LUXURY REAL ESTATE
The SoFi Group is the leading real estate sales and marketing team in South of Fifth, in South Beach Florida. We are involved in the sales of Luxury condos in the most sought after buildings in South Beach and Miami Beach. The buildings we focus on are Apogee South Beach, Continuum, Continuum II, Portofino Towers, Murano at Portofino, Murano Grande, Icon South Beach, Il Villaggio and The Setai.
Miami and Miami Beach have been undergoing a dramatic transformation in the past decade. From a city only known for its beaches and beautiful people, Miami and Miami Beach evolved into a cosmopolitan metropolis that attracts many like a magnet. Neighborhoods have emerged in places where only a few years ago, there was nothing – from SoFi, sophisticated and exclusive, at the very tip of South Beach, to the Design District, happening and cutting-edge, in a formerly abandoned neighborhood. Miami has become a truly international city, with people moving here from Europe, Latin America, and all over the US, but preserved its Latin twist.
There truly is something for everyone in this new Miami. For the foodies and the shopping aficionados entertainment is plentiful – fabulous restaurants are everywhere, and international shopping brands have set shop on Lincoln Road or close by. For the art enthusiasts, there are over 100 art galleries now open in Wynwood, the arts district, and the new Miami Art Museum, a masterpiece of Swiss architects Herzog and de Meuron, is slated for completion in 2014. And then, of course, Miami is home to Art Basel Miami Beach, which transformed Miami into an art world Mecca. For those passionate about design, there is the Design District, which has transformed itself into one of the most important global centers for cutting-edge art and design, and hosts the leading international design show Design Miami. For the performing arts devotees, the Adrienne Arscht Center offers everything from opera to theater, and the New World Symphony has found a new home in the edifice envisioned by Frank Gehry close to Lincoln Road.
Aside from all of the above, of course, there is the weather, the beach, the ocean. What more could one ask for?