I’m often asked by both buyers and sellers interested in purchasing or selling a waterfront (and non-waterfront) single family home on Miami Beach if we’ve reached a housing market bottom? The answer for PRIME waterfront properties located on island communities such as Palm, Star, Hibiscus, Sunset Islands I – IV, and the various Venetian Island communities is that homes that are priced according to latest closed sales comparables are selling quickly. As inventory continues to be absorbed, we are seeing price stabilization (especially for remodeled and turnkey homes and condos).
Waterfront condos, especially premier waterfront and oceanfront buildings such as Continuum North and South Towers, Apogee, The Portofino, The Murano at Portofino, Murano Grande, Icon, and even The Bentley Bay on West Avenue are also seeing significant sales taking place in the past several months AT REDUCED PRICES. For South Beach landmark luxury buildings completed after 2001, if the price is right, we are seeing plenty of buyers willing to make reasonable offers. Therefore, if you’re a seller that needs to sell, my advice is the same- work with an experienced and knowledgeable sales agent/broker that will price your property realistically and then market as agressively as possible.
I’m often asked about the best deals in Miami Beach’s premier waterfront homes and condo buildings. Specifically, most active buyers want to know how much lower can prices go and what constitutes a true “bargain” today? Lately, I have noticed a divergent trend among Miami Beach properties (both homes and condos). The most sought after condos in premier buildings such as TheContinuum Condo, Murano at Portofino, Portofino Tower, Icon, and Murano Grande have seen a surge in sales activity in the past few months. The premier waterfront single family homes and condos are selling NOW at significantly discounted prices.
The most recent condo and home sales continue to demonstrate that buyers are willing to pull the trigger and purchase homes and condos that are priced right and significantly discounted from 2006 closed sales prices. What is the right price? It all depends!
A few divergent examples of Recently Sold Waterfront Miami Beach Condos and Single Family Homes:
The Continuum Condo – South Tower Penthouse-1
Continuum Penthouse
Magnificent and massive South Beach oceanfront 3-level penthouse. 360 views, 5 bedroom/7.5 bath, 13′ ceilings (26′ in dining room) & 7,000SF under a/c, pool, Smart house touch panels integrate high-end audio, video, auto shades, HVAC, lighting, security, 4-plasma TVs, wi-fi, private elevator, all on top of the most exclusive 13-acre gated enclave with spa/club, 3 tennis courts, 3-pools and 2 rest. at the southernmost tip of the most exciting part of South Beach. Also included in the sale were four private parking spaces.
: 12 acres on the Ocean, 360 degree views, One of a Kind Three Level Penthouse
: None
Sold Price: $9,900,000
Original “For Sale” Price : $25,000,000
Previous Sales Price (2003) $7,000,000
Bedrooms: 5
Bathrooms: 8
Condo S.F.: 7,374
Sold Date: May 15, 2009
Sold Price per S.F.: $1,342 Discount from Original Asking Price: 60.4%
The Bentley Bay – South Beach Design Group Showcase Condominium
Bentley Bay Condo # 1811
Amazing 270 degree views of Downtown Miami, Star Island, Fisher Island, and the Ocean from this contemporary designed two bedroom condominium. Terrazo floors, custom lighting, clean design and decorator appointed finishes. The original owners had spent well over $200,000 in upgrades and finishes alone!
: 270 degree views of Biscayne Bay, Downtown Miami, and the Ocean, beautiful finishes & design. Boutique Building.
: High Maintenance Fees and construction issues at The Bentley Bay
Non-MLS Sold Price: $480,000 (2009)
Original “For Sale” Price : $1,595,000 (2005)
Previous Sales Price: $1,090,000 (2006)
Bedrooms: 2
Bathrooms: 2
Condo S.F.: 1,250
Sold Date: May, 2009
Sold Price per S.F.: $384/S.F. Discount from 2006 Asking Price: 72%
Palm Island- Single Family Home with Old World Charm
Palm Island Miami Home
Beautifully updated 2-story Mediterranean charming home on exclusive, guard-gated Palm Island. Paradise living on secluded island just minutes from the excitement of South Beach and downtown Miami. Easy commute anywhere in South Florida. Walk to new park/playground/tennis courts. 4 bdr/ 3 bth, updated kitchen, marble baths. Open & bright design.
: Charming Home, Spectacular location on Palm Island, Gated Island Community
: Small Lot, some work needed on property
Sold Price: $660,000 (2009)
Original “For Sale” Price : $1,749,000 (2006)
Bedrooms: 4
Bathrooms: 3
House S.F.: 2,616
Land S.F.: 5,775
Sold Date: May, 2009
Sold Price per S.F.: $252/S.F.
Discount from Original Asking Price: 62%
Palm Island- Double Lot Waterfront Home
Coconut Lane Home - Palm Island Miami
Waterfront home on a double sized lot with lush landscaping, 100 ft of open bay on 24 hour gate guarded Palm Island. Amazing views of downtown Miami and Cruise ships. The home included a private dock with Boat Lift, a two car garage, sauna, outdoor shower, pool, large entertainment room, and even a real working fireplace. Marble and wood floors throughout, stainless steel appliances, Hurricane Impact windows, and a balcony as well as covered Patio on the second floor to enjoy the views!
: 100 ft. Prime Waterfront Lot, Spectacular location on Palm Island, Gated Island Community
: Home needed some updating
Sold Price: $2,700,000 (2009)
Original “For Sale” Price : $5,800,000 (2006)
Bedrooms: 3
Bathrooms: 3
House S.F.: 3,180
Land S.F.: 14,000
Sold Date: May, 2009
Sold Price per S.F.: $849/S.F.
The level of interest and calls from former (and many new) clients looking to purchase Foreclosure and Bank Controlled condos as well as Short Sales has significantly increased in the past few months. The strongest downward price pressure is occurring due to distressed and short sales. However, the high end of the luxury condo market, particularly for the five star buildings in the South Beach area (Icon, Murano Grande, Murano at Portofino, Continuum, Apogee and Portofino Tower) continue to experience strong demand and prices still command a strong premium in terms of overall $/S.F.
Purchasing a Bank-owned (usually referred to as REO) or short sale property is usually a lengthy and complicated process with no guarantee of success in actually getting free and clear title for the buyer. The key is working with a real estate professional who knows the parties involved in the transaction (attorneys, banks, other realtors, and misc. creditors) so that the property can be successfully acquired by the interested buyer. Due diligence, follow up with large volumes of paperwork, and often times complex negotiations with lenders is essential for ultimate success.
If you are a potential short seller, this is especially important to keep in mind in choosing a listing agent, as NOW is the time when savvy buyers are purchasing spectacular waterfront condos in the above mentioned buildings (as well as many others).
A quick look at a few more prominent closed sales (& short sales) in some of the premier condo buildings in the South of Fifth Street area of Miami Beach:
Continuum on South Beach – South Tower #2703
Continuum South Beach Unit 2703
Beautiful unit on a high floor. Great condition! Stunning views of the Bay, Government Cut, Ocean and Downtown Miami. Several upgrades throughout, including a modern Master Bathroom.
Original Asking Price: $2,395,000
Sold: $1,375,000 ($778/SF)
Closing Date: 12/08/08
Price Drop (original asking vs. actual sales price): 42%
Continuum on South Beach- North Tower #2301
This massive two bedroom unit is in a corner location, with walls of glass looking out towards the beach, Government Cut and Downtown Miami.
Original Asking Price: $1,850,000
Sold: $1,535,000 ($798/SF)
Closing Date: 02/18/09
Price Drop (original asking vs. actual sales price): 17%
Portofino Tower – #PH4306
Breathtaking views of the ocean from this 43rd floor Penthouse. South Beach, Biscayne Bay and Downtown Miami views. 2 large terraces.
Original Asking Price: $1,995,000
Sold: $1,600,000 ($678/SF)
Closing Date: 2/18/09
Price Drop (original asking vs. actual sales price): 25%
Murano Grande – #1606
Stunning 16th floor direct-bay unit at South Beach’s Murano Grande. A middle bedroom was removed, making this one of the largest and most-spacious 2 bedroom units in the building.
Original Asking Price: $1,449,000
Sold: $1,320,000 ($652/SF)
Closing Date: 1/28/09
Price Drop (original asking vs. actual sales price): 9%
Bentley Bay #412
DIRECT BAY VIEWS of Star Island & DOWNTOWN Miami with extra large Balcony.
Original Asking Price: $539,000
Sold: $325,000 ($417/SF)
Closing Date: 1/28/09
Price Drop (original asking vs. actual sales price): 40%
Statistics from: The Southeast Florida Regional (SEFR) MLS
Art Basel Miami Beach will be taking place December 4 – 7, 2008.
Art Basel Miami Beach is the most important contemporary art show in the United States, a cultural and social highlight for the Americas. It is the sister event of Switzerland’s Art Basel, the most prestigious art show worldwide for the past 39 years, Art Basel Miami Beach combines an international diversity of the world’s top Art galleries along with exhibitions, parties and crossover events featuring music, film, architecture and design. Exhibition sites are located in the South Beach Art Deco District, walking distance to the beach and most South Beach hotels.
An exclusive selection of more than 220 leading art galleries from North America, Latin America, Europe, Asia and Africa will exhibit 20th and 21st century artworks by over 2,000 artists. Most artists will be displaying at the Miami Beach Convention Center, and also and at various galleries in Downtown Miami’s Arts District.
We have several buyers from Eastern Europe (and one from South America) that will be looking at purchasing among South Beach’s premier Condos (some of these asking prices have adjusted downward following the latest financial crisis). I’d like to take this opportunity to highlight a few of the premier turnkey condominiums offered for sale on the South Beach market:
Portofino Tower # PH4004- 2 Stories, 4,100 S.F., 5 beds / 4 baths
300 South Pointe Drive
Miami Beach, 33139
Original Asking Price: $6,575,000
Current Asking Price: $6,200,000 (6% reduction)
Portofino Tower – Penthouse 4004 (Kitchen and Living Room)
Murano Grande #3003/4- 6,032 S.F., 5 beds / 5 baths
400 Alton Road
Miami Beach, 33139
Original Asking Price: $9,500,000
Current Asking Price: $6,900,000 (27% reduction)
Murano Grande Condo – Bathroom and Dining Area
Continuum South Beach – South Tower PH1- 3 Stories, 7,374 S.F., 5 beds / 7 baths 13’ Ceilings
100 South Pointe Drive
Miami Beach, 33139
Original Asking Price: $25,000,000
Current Asking Price: $14,950,000 (40% reduction)
Continuum South Beach – (Dining Area and Pool)
Apogee South Beach – 2001/2002-, 7,254 S.F., 7 beds / 8 baths 10’ Ceilings
800 South Pointe Drive
Miami Beach, 33139
Current Asking Price: $17,750,000
Apogee South Beach – Kitchen and View
Il Villaggio PH 6 & 7 – 2 Stories, 5,700 S.F., 3 beds / 6 baths
1455 Ocean Drive
Miami Beach, 33139
Original Asking Price: $18,500,000
Current Asking Price: $13,900,000 (25% reduction)
Il Villaggio – Den and Living room
Icon South Beach #1801- 4303 S.F., 3 beds / 5 baths
450 Alton Road
Miami Beach, 33139
Original Asking Price: $5,900,000
Current Asking Price: $3,600,000 (39% reduction)
Icon South Beach – Dining Area and Living Room
Murano at Portofino #3101 – 3,365 S.F., 3 beds / 3 baths
1000 South Pointe Drive
Miami Beach, FL 33139
Current Asking Price: $4,900,000
Recently, I received in the mail a very comprehensive market snapshot from a local brokerage firm with a variety of confusing statistics gathered from the MLS comparing 2006 and 2007 Q2 sales for the more prominent buildings South of Fifth Street in Miami Beach. I’m astounded that in today’s real estate market, sales professionals are still sending out confusing statistical reports in an effort to sign up listings.Below is my common sense interpretation of the data.
I’ve compiled the following from the MLS to clearly communicate what is happening with the luxury condo market South of Fifth Street for the following luxury waterfront buildings:
There are 20 units for sale, which makes it the lowest inventory building in the entire area.The average asking price is $2,475,000 at $1,107/S.F.The median sales asking price is $1,660,000 at just over $1,000/S.F.YTD 2007 a total of 3 units have sold, at an average sales price of $1,523,000 at $1,126/S.F.
Although on paper prices do not seem to have been affected thus far, only THREE units have sold for the entire year!Also of note, there are only two â¬S01⬠or â¬SA⬠units (which I consider to be among the best floorplans and views in all of SE Florida and Greater Miami) and they are still hard to come by- with only two units on the active market starting at $4,900,000 or $1,456/ S.F.The last two closed sales that have taken place for the â¬S01⬠units were in March of 2006 for an average of $3,947,000 at $1,172/S.F.
There are 53 condominium units for sale in this building, obviously an oversupply of sellers (with at least two units in foreclosure/pre-foreclosure).The average asking price is $1,897,000 at $840/S.F.The median asking price is $1,470,000 at just over $838/S.F.For the second half of 2007 (since June 1) a total of 6 units have sold (vs 13 sales for same period last year), at an average sales price of $1,406,000 at $847/S.F.This represents a closed sales slowdown of 53% during the summer/fall months of 2007 vs summer/fall of 2006.
There are 43 condominium units actively for sale, with at least four units in foreclosure/pre-foreclosure.The average asking price is $1,860,000 at $895/S.F.The median asking price is $1,600,000 at just over $876/S.F.For the second half of 2007 (since June 1) a total of 6 units have sold (vs 16 sales for same period last year), at an average sales price of $2,676,000 at $931/S.F.This represents a closed sales slowdown of 63% during the summer/fall months of 2007 vs summer/fall of 2006.
There are 50 condominium units actively on the market for sale.The average asking price is $2,983,000 at $1,263/S.F.The median asking price is $2,372,000 at just over $1,225/S.F.For the second half of 2007 (since June 1) a total of 7 units have sold (vs 10 sales for same period last year), at an average sales price of $1,566,000 at $869/S.F.This represents a closed sales slowdown of 30% during the summer/fall months of 2007 vs summer/fall of 2006.
There are 37 condominium units actively on the market for sale.The average asking price is $1,955,000 at $881/S.F.The median asking price is $1,699,000 at just under $800/S.F.For the second half of 2007 (since July 1) a total of 3 units have sold (vs 6 sales for same period last year), at an average sales price of $2,983,000 at $972/S.F.The most significant difference over the past year, are that the number of active condominiums for sale has increased, but the ones selling are the premier waterfront Penthouses and â¬S01⬠high floor lines with unobstructed views (see below)
Closings will be commencing in the next few weeks, the 01 and 04 lines are by far the most desireable.For example, one of the better re-sale units is #901 and can be purchased for $4,790,000 at $1,155/S.F. This may seem like a high price, the 01 line and 04 lines at Apogee have been thus far priced in the $7M and $8M range. I believe that these units are most competitive with Murano at Portofino â¬S01⬠or â¬SA⬠units.Note that the last two closed sales that have taken place for the â¬S01⬠units at Murano for an average of $3,947,000 at $1,172/S.F.See comparisons of units â¬SA⬠from both buildings below:
: 12 acres on the Ocean, 360 degree views, One of a Kind Three Level Penthouse
: None
