Coconut Grove Condo News and Market Trends for 2018
The Coconut Grove Condo Market in 2017 and Our Expectations for 2018!
The Coconut Grove condo market is arguably the best performing condo market in Miami. Where other areas saw an enormous decline in the condo absorption rates, resulting in decreasing prices, Coconut Grove condos performed much better. With only a limited amount of condos in this unique and upscale Miami neighborhood the supply is easily absorbed by the demand. While neighboring Brickell is seeing an oversupply, Coconut Grove is still in the expansion phase of the real estate cycle. With rising demand and limited supply, the market is now announcing a few brand new condo projects. As market analysts and top producers, the David Siddons Group decided to examine the Coconut Grove condo market in further detail.
Prices and Price Changes in the Coconut Grove Condo Market
* Click on image to enlarge *
In the table and graph above we provide you with the sales prices per SF for Coconut Grove condos in 2017 and we compare these prices with previous years. The Coconut Grove condo market can be divided into the smaller, more dated condo buildings that are located on dry lots, without any water views and the more luxurious waterfront condos located on South Bayshore Drive. For this reason we provide the sales data for all of Coconut Grove’s condos as well as for the most desired luxury condos along S Bayshore Drive.
For the entire Coconut Grove condo market we have recorded price increases and decreases over the last few year with the most corrections in the lower-end of the market. The higher-end of the market has seen a surge in prices per SF mainly driven by the delivery of some brand new ultra-luxury condos that have brought new levels of luxury to Coconut Grove. We added trend lines in the graph to show you the general price trends over the years. The Grove, like other markets, has experienced some price corrections to stabilize the market as buyers became more price conscious than before, but the overall trend (see trend lines) shows a steady increase.
The graph and the table below indicate the months of inventory and this might be the most important indicator in the real estate industry. Months of inventory show you the supply and demand relationship, which is key in predicting future price changes. As you can see from the tables, the Coconut Grove condo market is seeing very low numbers of inventory. The market is pre-dominantly a sellers market, while the most luxurious condos are experiencing a buyers market.
What does sellers or buyers market mean?
- A sellers market (With 6 or less months of inventory – and 12 or less months in the Luxury $1M+ market) means that there is more demand than supply, mostly leading to an increase in prices and providing sellers with an advantage.
- A buyers market (With 9 or more months of inventory – and 18 or less months in the Luxury $1M+ market) means that there is more supply than demand. Prices are likely to decrease in order to absorb the supply.
- A neutral market provides for a perfect balance in which neither party has an advantage and prices are likely to remain stable
Prices and Price Changes for Coconut Grove’s most Desired Condos
In the table below we provide you with the sales prices per SF for Coconut Grove’s most desired condos. These are mainly located along the waters of the South Bayshore strip. Please take note of the comment below the table, some of these condos see a limited amount of yearly sales, which leads to considerable shifts in prices from one year to the other.
Price Range Distribution for Coconut Grove Condos
Like everywhere in Miami, the Coconut Grove condo market below the $500K marker is decreasing while the luxury market is gaining momemtum. Striking is the $1M – $2M market being low in active listings as well as sales in general. We have already mentioned last year that we saw a market gap for this price range. There is a great amount of older, more affordable units on the market and very high-end units, while the $1M market is seeing a demand yet no supply. These days we see developers starting to provide for the $1M+ range
The ultra-luxury market is now being catered by:
- Grovenor House | Established luxury condo | Prices ranging from $1,5 – $10M+
- Grove at Grand Bay | Recently delivered | Prices ranging from $1,38M – $25M+
- Park Grove | Under construction with delivery in 2018 and 2019 | Prices ranging from $700K – $20M+
- The Fairchild | Under construction | Prices ranging from $1,4M – $4M+
- The Markers | Delivery in 2019 | Prices starting from $2,2M+
- Glasshause | Under construction | Prices ranging from $595K to $1.2M
- Grove Arbor | Under construction | Prices starting from $799K+