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.
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
Well Finished Penthouses sell at a premium
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