Miami Beach Penthouses for Sale | The State of the Market
Miami Beach Penthouse Units for Sale
For this blog we are taking the entire Miami Beach area into consideration from the most southern tip of South of Fifth to 87th Street. We usually isolate the South of Fifth portion and analyze that market separately, but we are including this area in the bigger picture this time. For this report we only considered units listed and sold over $1M.
High Inventory in the Miami Beach Penthouse Market
When it comes to Miami Beach Penthouses we are witnessing a market that, just as the rest of the high-end market, is moving at a very slow pace. The current market conditions show 36 months of inventory, which is clearly a stagnating market. On top of this, we expect an inventory surge in the next couple of months. The Miami Beach condo market experiences a high and a low season, the high season is coming up when both sellers and buyers are in town.
In the last 6 months we saw 8 Miami Beach Penthouses being sold:
Only 8 closed sales at an average of $825 per SF. The price per SF range for these penthouse units is quite broad with PH unit 1604 at the 1 Hotel and Homes selling for $1,914 per SF, while Penthouse A at Seacoast at 5700 Collins (one full-floor Penthouse) sold for an extremely low $276 per SF.
Like in the general market, well-finished product s moving, while the large, more dated units are oftentimes less appealing, because of the amount of work they would require even if they are penthouses with spectacular views.
Penthouse 9 at Decoplage Condo sold for $1,175,000 or $788 per SF
Penthouse 1604 at the 1 Hotel and Homes sold for $3,650,00 or $1,914 per SF
Current Inventory of Miami Beach Penthouses
Currently there are 94 Miami Beach Penthouses for sale, of which almost 50% is listed above the $1M mark. Among these units only 30% is priced below $1,000 per SF and 50% of those units have been on the market for over 300 days already. These are clear signs that the market needs adjusting in order for the inventory to be absorbed. Price corrections are very likely to happen in 2020
The current offer is composed of very diverse products. Half of the Miami Beach Penthouse units for sale are smaller, 1,300 to 1,800 SF or 2 or 3 bedroom units, located in older buildings along the ocean. Those units are mostly priced between $1M and $2M, most of the times featuring old and outdated finishes in the eye of today’s Miami buyers.
The units require a full renovation, which will have an estimated cost between $100k and $400K for a unit below 2,000 SF.
The cost of the renovation, added to the hidden costs of the HOA fees and taxes paid during what are sometimes long renovation projects, needs to be put into account in this kind of purchase.
The other half of the inventory is made up of larger units ranging between $4M and $15M; either well-renovated or located in newer buildings. Generally speaking the more southern a condo is located along the coast line, the pricier it becomes. There is currently only a handful of units listed over the $15M and are all located in the South of Fifth Area.
Among the recent sales, we want to highlight an example of an extremely well finished unit at Spear at Aqua – PH2 that was sold for over $1000 per SF. This is an exceptionally high price for a building that is not directly on the ocean. PH1 in the same building was sold around the same time for under $600 per SF
We have witnessed the same trend in the higher-end portion of the beach condo market: units exceptionally well-finished keep on selling at a premium; over the mere cost of the renovation
For more information on Miami Beach Penthouses for Sale please contact the David Siddons Group
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.