As Miami Luxury Homes for Sale are Drying up Buyers focus on Miami Luxury Condos

The Surge in Demand for Miami Luxury Condos

At this point it shouldn’t be a surprise anymore that Miami is attracting lots of wealthy buyers from the high-tax states such as New York, New Jersey and California. The recent move of the ultra-wealthy into Miami has left the city with an extreme low inventory of good quality luxury homes. Ultra-luxury waterfront mansions in desired neighborhoods such as the Venetian Islands, Sunset Islands and Gables Estates are snatched up at a rapid pace and new construction homes, most desired with ultra-luxury buyers, are often sold before they are even listed. Miami luxury homes move fast and buyers need to come in strong. In order to avoid this hassle and to move quickly many of these buyers decide to look at the ultra-luxury Miami condo market.

As Miami Luxury Homes for Sale are drying up Buyers focus on Miami Luxury Condos

As Miami Luxury Homes for Sale are drying up Buyers focus on Miami Luxury Condos

The Increasing Demand for Miami Luxury Condos

We have noticed a higher demand for units between $3M and $10M, but the $10M+ ultra luxury market is really one of the most desired markets of the moment. Lots of trades are happening in this market and also as a group we are experiencing an increase of buyers for this particular market. Our website, that in the last year got most traffic for single-family home buyers, is now recording an enormous demand for high-end condo living. Our newest blog on the Best Miami Condos for Sale in 2021 is one of the most visited pages on our site.

We saw 30 closed deals in the $5M+ market with 24 deals pending. In the same period of 2019 the MLS recorded just 14 condo sales. Most of the deals happened in new condos like Arte SurfsideMr C in Coconut Grove, Palazzo della Luna on Fisher Island and the Ritz Carlton Residences in Miami Beach.  Also high-end resale condos that offer large residences like Oceanside on Fisher Island, The Surf Club Four Seasons in Surfside, Eighty Seven Park and Faena House in Miami Beach, Oceana Bal Harbour and One Thousand Museum in Downtown see an increase in sales.

A Demand Based on a Necessity Purchase

Is this the start of a new condo bubble? No, it is not! During the last condo boom the purchases were investment driven and buyers focused on smaller 1 or 2 bedroom units. These buyers were investors who made discretionary purchases with the idea of flipping these units or renting them.  Today’s buyers, mostly relocating families coming from San Francisco, NYC and Chicago, are looking for a new primary residence. They move to Miami for tax advantages and a better lifestyle and with a raging pandemic many are escaping social tension or small(er) condos. They are looking for large 3+bedroom units and the purchase is necessity driven. Because there is a real need to find a good suitable home for the entire family we notice buyers are making quick decisions and want to move fast. Some buyers want the convenience of a condo while others intended to buy a home but due to the lack of inventory prefer to live in a larger condo for the time being.

Will the Demand for Miami Luxury Real Estate Continue?

We expect the high demand for Miami Luxury Condos and Homes to continue during 2021! People come for the tax climate and lifestyle and stay because they realize Miami is quickly emerging into a world class city much like NYC. Miami has excellent private schools, superb restaurants and it is establishing itself in the culture and arts scene. Besides the new trend of working from home and therefore being able to work from anywhere, Miami is also attracting new businesses, which means there is even more incentive for entrepreneurs, C-suite executives and highly educated individuals to move to Miami. Most ultra-luxury buyers work in tech or finance, which are two of the industries that are making their way south.

While Miami has drawn tech investors and founders for years, the COVID-19 pandemic seemed to accelerate the rate of migration. According to Crunchbase there has been a big wave of tech companies establishing themselves in Miami in 2020. Miami Mayor Francis Suarez has been promoting Miami as an emerging tech hub, and at the start of the new year, there’s increasing attention on the south Florida city in tech circles.

Also Wall Street executives, bankers and fund managers are abandoning New York for Florida, embracing the Sunshine State over metropolitan New York.  According to Reuters, companies including Elliott Management, Citadel and Moelis & Co are among the latest to say they will open satellite offices there or allow their moneymakers to be based in Florida. Goldman Sachs Group Inc is looking at moving some asset management staff there while Blackstone Group Inc also plans to open an office for hundreds of back-office technology staff near Miami.

Is this a good moment to buy a Condo in Miami?

Miami bas experienced a high condo inventory in the last several years and prices have come down considerably. If you ask me we are about 6 months away from a shift in the condo market. We are currently nearing the bottom of the market and this is another reason why we have seen increased interest in the luxury condo market. Prices have adjusted and buyers feel confident again that they are paying fair prices. The picture below is taking from our Condo Geeks data analytics system, which we use for our clients to track the condo market. We selected all the $3M+ condo units in all of Miami Dade and in the lower left part you see how this entire market has performed since 2005. As you can see we are near the last cycle’s bottom of the market (looking at 2012/2013 prices). Please contact me at 305.508.0899 for more information on this tool and how it can benefit you for your next investment!

As Miami Luxury Homes for Sale are drying up Buyers focus on Miami Luxury Condos

Which Miami Luxury Condos are selling?

Below you will find more information on some of the luxury condos that are selling more than other buildings in town. Please call David Siddons at 305.508.0899 for more information on the Miami Luxury Condo Market!

One Thousand Museum in Downtown Miami

One Thousand Museum in Downtown Miami offers large half and full floor residences. At the Zaha Hadid-designed One Thousand Museum in downtown Miami one of the penthouses sold for $20M dollar to David and Victoria Beckham in April of 2020. This January two other units sold for respectively $16M and $6M two units sold in January. Both buyers were domestic buyers from the high tech states (San Francisco and NYC)

Arte Surfside

The boutique Arte Surfside condo, offering just 16 large units ranging from 3,126 SF to 7,681 SF, sold a $33M penthouse unit in December. In January of 2021 they closed on a $16M and a $10.2M unit. The $10.2M dollar unit sold for $250K above asking. Again the buyers were from NYC and the west coast. Arte Surfside still has 50% of its inventory.

Palazzo della Luna

Palazzo della Luna sold 6 units above the $10M mark in 2020. Palazzo della Luna is very desired with New Yorkers who value privacy and exclusivity.  We hold this condo is very high regard as well as the island it is located on. It ranks extremely high on privacy, exclusivity, finishes, amenities and its large floor plans. The only downside might be the lack of units with direct and unobstructed ocean views. Units come completely finished and are move-in ready so there are no hidden costs to finish the unit any further.

Surf Club Four Seasons Residences in Surfside

This very desired condo tower with 5 star services is very desired as well. It recorded several $10M+ sales in 2020 and has been a top seller in the ultra-luxury market since it was launched.

57 Ocean Miami Beach

Nirka Burns, sales director at 57 Ocean on Miami Beach informed the David Siddons Group that the project sold  15 units ranging from $2M to $7M in the last 3 months

Contact David Siddons for more information about Miami Luxury Condos for sale.

David Siddons | 305.508.0899 | David@siddonsgroup.com

David Siddons is a top producing Miami real estate agent and Director of Luxury Sales with Douglas Elliman. David is known as a market analyst and he is the author of several of Miami’s most influential real estate reports and forecasts

FAQ

These are the most commonly asked Google Real Estate Related questions

1. What are the Current Best New Condos in Miami?

If you want to hear in more details our opinions on the best new Miami new construction condos. Please read this article:Best New Construction Condos 2022-2023

2. What is the best New Construction Condo in Fort Lauderdale?

In our opinion, the Residences at Pier Sixty-six are certainly the most interesting and unique. Already well underway this 32 Acre project will be home to the first of its kind Marina where owners will be able to anchor up vessels up to a staggering 400 ft! For specifics of this project see our independent review of this project.

3. How can I compare the new luxury construction Condos to the best existing Luxury Condos in Miami? 

Our Best Luxury Condos in Miami article will prove to be very useful to those looking to compare the existing to the new. You may also want to watch this video which shows the performance of the best Condos in Miami over the last 15 years!

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