Market Report for South of Fifth Condos for Sale | Q1 & Q2 2020

The South of Fifth Condo Market Update for Q1 & Q2 2020

We are writing this blog as a quarterly condo market update for South of Fifth. We will update you on the market’s performance as well as on current trends. Finally we will tell you what we expect to happen in the months to come and where we expect to see opportunities for great deals.

$500K to $2M

Closed sales data are taken over the last 3 months from our Condo Geeks Analytics Tool

The South of Fifth Market has softened in the last few years. This year we are seeing less sales than in previous years and the price levels remained equal to those in 2018 and 2019.  In the last 6 months we saw 39 units being sold while only 13 of these sales happened in the last 3 months! The months of inventory are currently at 31, meaning it will take 31 months (almost 3 years) to absorb all units if the market remains like it is today and no new units will enter the market. Covid-19 has definitely had an impact on this market, potential buyers weren’t able to travel to Miami or to enter these buildings and therefore we have seen very limited sales. Sales has been very slow while at the same time some sellers are in desperate need for cash and therefore looking to sell. We expect inventory to rise further as more sellers might have to offload their real estate assets and the high season is only starting in November.  This is a great market for buyers ready to pull the trigger. You can use our data in the slideshow above to see which condos are best for your budget, which condos are selling at the highest discounts (Continuum, Murano, 321 Ocean and Icon) and which units have been on the market for the longest period of time.

Please call us at 305.508.0899 to really deep dive into the different condos or in case you have your eyes set on a specific South of Fifth condo for sale and would like to know its true market value.

Unit 505 at the South Tower was the best priced 2 bedroom sale in 2020. This property sold for $1.7M or $910 per SF. It was listed for $1,985,000  (14% discount). It stayed on the market just 22 days before being sold in January (Pre-covid)

$2M to $5M

Closed sales data are taken over the last 3 months from our Condo Geeks Analytics Tool

We see the same trend here as in the other price ranges. The market has slowed down and price levels have stagnated. We are currently seeing 87 units on the market while 15 units sold in the last 6 months and 6 of these sold in the last 3 months. To put this into perspective; the market’s inventory increased from 35 to 43 months in the last 90 days. This means that under current market conditions it will take almost 4 years or 43 months to absorb all the current inventory. In other words the supply/demand curve is unbalanced and is currently favoring buyers, as there is more supply than demand.

The fact that there were no showings allowed for the last 2 months and buyers were not in town or hesitant to travel will undoubtedly have something to do with that. Although inventory is already high we do expect more product to enter the market in the months to come before the high season starts in November. With the global pandemic and economic decline we expect some owners to offload their units. Continuum units often being 2nd, 3rd or 4th homes and the stock market being bearish, offloading real estate might be the only way for some owners to get liquidity. Buyers can make really good deals this year and whomever ready to make a move can take advantage of that. In the beginning of 2020 we already saw declining prices and we can only expect this buyers market to grow stronger with additional inventory entering the market.

Condos like 321 Ocean, Portofino and Icon are seeing the highest levels of discounts on sales prices and in many condos the units stay on the market for more than half a year before being sold. Our Condo Geeks tool which we used for the graphs above show you which condos stay longest on the market, which offer the highest discounts and which one are offering the best prices!

The top sale in the last 90 days was at Continuum on South Beach (South Tower) where unit 1604 (2 bedrooms, 2.5 bathrooms and 2,292 SF) sold at $4,850,000 or $2,100 per SF.
This is a high price considering that the unit has developer finishes. The 04 line offers a beautiful wrap around terrace and has sold for a premium historically.

This unit at Icon on South Beach represented the best deal at $778 per SF.

$5M+

Closed sales data are taken over the last 12 months from our Condo Geeks Analytics Tool

The ultra-luxury market of South of Fifth is seeing a decline in the number of sales. While there were 6 sales in the last 12 months, there was only 1 sale in 2020. Also we can see that the sales price of that unit is below the average sales price of previous years. There are currently 44 units on the market with only 1 sale in the last 6 months. The market is unbalanced and there is much more supply than the market can absorb. Like mentioned before Covid-19 had an impact on this market. On the demand site, buyers were hesitant to fly into Miami or to pull the trigger. On the supply site we saw that many units hit the market during the pandemic as these condos are often second, third or fourth homes that must be taken off the books in a time like this. We expect the inventory to increase further in the months to come. This is a great market for vulture deals. Not every seller will appreciate low offers, but some might be happy to sell at a great discount.

In the last months Continuum South set the record for this price range as well with unit 3303 that sold at $8.4 M or $2,500 per SF

Unit 300 at 321 Ocean Dr is the only sale that happened in the $5M+ price range. This unit sold for$5,750,000 after being listed for $6.2M

David’s Comments and Take-Aways

The South of Fifth condo market is in a holding pattern right now. We didn’t see many sales happen in the $2M+ range (just 6 sales were recorded in last 90 days). This is really because of the high infection rates we are experiencing in Miami and people aren’t confident (or aren’t allowed even) to enter any condo building. There are inquiries for South of Fifth condos, but mostly from buyers that expect a deal. Many sellers are in a weakened position and in need to get liquidity. They are offloading their real estate assets and as a buyer you are in a stronger position right now. If you are one of those buyers willing to get in and ready to make a deal you might be seeing some opportunities that you would normally never see in this desired area. You have to behave against the market in order to take advantage of this market. Right now nobody is buying, so the few buyers who are ready now might get great deals. Not every seller will be entertained, but you will see several sellers that are ready to offload real estate for a discount. Do not forget that South of Fifth is home to some of the most luxurious and most desired real estate that exists in Miami with condos such as Continuum, 321 ocean and Apogee.  Now is the time to make deals happen that would normally never happen.

Contact me today for more information!

David Siddons | 305.508.0899
Stefania Cambarau | 305.965.1232

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!

WHY WORK WITH DAVID? THINGS YOU SHOULD KNOW...

For all our analytics we are agents driving some very unique and advanced tech. We Provide a granular and custom experience that empower our clients with the insight and tools to understand the most complex behaviors of any local markets.

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Akbota YerseitAkbota Yerseit
13:29 03 Jun 22
Excellent leaders!
Cathryne HaladnerCathryne Haladner
12:12 18 Sep 21
We have only superlatives to describe how wonderful Cris Buzolin was throughout the process of selling our townhouse in Coral Gables. We were away in the UK while the transaction was taking place and Cris handled everything-from clearing out our house, selling contents when she could, arranging the moving and storage and dealing with some very difficult problems which arose. Always patient and very willing to help in every way, Cris is a consummate professional who really cares about her clients and worked extremely hard to get the price we had asked for and make things for us as easy as she could. Nothing was too much for her to handle.Cris and Marianela (who provided additional very helpful assistance to us during the transaction) are part of the team that David Siddons has assembled.When we decided to sell our property, we contacted David and he established the framework for the transaction and ensured that everything proceeded smoothly and in accordance with our wishes. In sum, David Siddons and his team are extremely competent and professional and we are totally satisfied with the service they provided. To repeat, Cris Buzolin in particular, went way beyond what one would expect from a real estate agent. The David Siddons Group has our highest recommendation!
Jose Eduardo FilhoJose Eduardo Filho
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I thank the whole team and especially Cris Buzolin who, in a very professional and competent way, helped me to sell my property safely and in the best market condition.
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Simone GarrettSimone Garrett
17:20 26 Feb 21
Fantastic group of people to work with!! David and Adriana were responsive and professional throughout the entire process. We weren't familiar with South Florida so David took us under his wing and did a fabulous job giving us a tour of select neighborhoods in South Florida and shared a great deal of information about each. We fell in love with the Botaniko community in Weston and closed the deal with Adriana. If you are buying/selling this is the team you want to work with!! Thank you guys for helping us find our dream home.
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