Wednesday, June 19, 2013

Miami Beach Real Estate: 2012 South of Fifth Condo Stats


Miami Beach Real Estate: 2012 South of Fifth Condo Stats



What a year it’s been.  Appreciate your time reviewing the stats….


Miami Beach real estate, Continuum South Beach, South Beach real estate


2012 was a crazy time for Keller William Miami homes and condos alike. In 2011, this South of Fifth (SoFi) condo index added a new luxury building, Ocean House, an ultra-posh, low-rise, 28-unit property in the completely renovated Walburne Hotel. It’s located at 125 Ocean Drive and was originally built in 1946.

The South of Fifth condo index is comprised of ten buildings, including Ocean House:ApogeeContinuum NorthContinuum SouthICON South BeachMurano at Portofino,Murano GrandePortofino TowerSouth Pointe Tower and Yacht Club at Portofino.

 

Number of Miami Beach Condos Sold in 2012





 

 
 
 
 
 
 
 
 
 
2012 set a record for the number of Miami Beach luxury condos sold. 241 units were traded, up from 198 condos in 2011, which broke a record as well. Here’s how the last five years look:

·         2012: 241

·         2011: 198

·         2010: 149

·         2009: 129

·         2008: 153


South of Fifth Condos: Average Days on Market in 2012


 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
As a Miami Beach Realtor for 20 years +/-, my thought is that unless a property is really special in some way, good or bad (floor plan, location, condition, etc.), if it shows well and is priced right, there is really no reason for it to be on the market more than 120 days.

Buildings such as Murano Grande have come back very strong from an oversupply of units – in this case, practically since the building was finished in 2003. The backstory on Murano Grande is that it’s a perfect example of the condo investor frenzy in Miami. The condos sold out very quickly… all to investors. When the building went to close on the units, almost every one was put back on the market as a resale. That’s pretty hard to snap back from.

Further hampering the absorption, the Miami Beach real estate market started to downturn in 2005. Up until now, Murano Grande has always had an oversupply of units. Then in 2008, the financial crisis came. As of today, there are only 14 units available for sale at Murano Grande, which is about 5% of the building. I’ve mentioned before that a balanced market (neither a buyers’ nor sellers’ market) happens when about 10% of the total number of units in a building are for sale. So for the first time in ten years, Murano Grande is enjoying a sellers’ market.

Average 2012 List Price / Sale Price

South Beach – SoFi Condos:


 





 

CONDO
2010
2011
2012
Apogee
$1,303
$1,779
$2,080
Continuum South
$832
$1,081
$1,331
Continuum North
$1,009
$1,157
$1,254
ICON South Beach
$510
$615
$816
Murano at Portofino
$756
$761
$863
Murano Grande
$573
$548
$641
Ocean House
N/A
N/A
$1,272
Portofino Tower
$567
$590
$741
South Pointe Tower
$580
$582
$624
Yacht Club
$452
$502
$575

 
I could do a compare and contrast analysis, but I believe the trend is pretty clear. I’m a numbers guy, so I’m going to let the data speak for itself.

What’s interesting about 2012 is the extraordinary number of ultra-luxury, mega real estate sales:

Sale
Price
Date
$20,963,054
12/31/2012
$10,500,000
12/27/2012
$11,152,500
12/27/2012
$15,750,000
6/12/2012
Continuum South PH 1
$25,000,000
5/18/2012
$16,200,000
2/17/2012

 

Miami Beach Condo Sales Volume Skyrockets


·         2012 – $513,282,638

·         2011 – $333,517,200

·         2010 – $231,130,331

·         2009 – $215,988,310

·         2008 – $243,668,138

Inventory is at an all-time low, and buyers are just hovering. It’s unnerving, actually. Miami Beach has already had a few huge, record-breaking sales in 2013. I will cover those in my next post.

 

 

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