The 2018 Miami Beach Luxury Condo Report
The 2018 Market Analysis for Miami Beach Luxury Condos for Sale
High Inventory, but not necessarily less demand
The Miami Beach condo market saw a considerable correction in 2016, one year after the condo prices peaked. The properties priced at the highest price per SF saw the biggest decline while the lowest and average priced properties seem to have experienced just a small correction.
Like in many other markets, the newest wave of condos offered a mix of good product as well as condos that were disappointing to say the least. Many developers sold luxury condos merely based on ‘location’ and flashy gimmicks. In the end we saw what we call the “McDonalds effect”. They promise a perfect end-product, but what you get is a burger with features that are less than perfect. Some of the new products saw their price take a dive almost immediately, while others are performing quite well. In the resale market we noticed the piggyback mentality of sellers. The arrival of some ultraluxury condos inflated the market prices and condos that had little to no luxury to offer, piggybacked on the sales prices of neighboring luxury condos. Overconfident sellers sold condos to buyers that did not do their proper research and had a “followers” mentality. Instead of looking at the condo they bought into, buyers looked at the overall market.
Although we saw a sharp decline in inventory in 2018, mainly due to an increased amount of sales, inventory is still elevated. I don’t think the high inventory of the Miami Beach luxury condos is due to the lack of demand. There is still a good number of buyers for the Beach, but prices need to come down. We still see movement within the good-quality condos and condos that are well priced. We think the market is currently seeing a price correction that was necessary after a few years of seeing extreme record prices.
If you want my personal opinion on which condos to avoid and which ones to focus on, please contact me on +1.305.508.0899
Special Note: If you are looking for luxury condos on the Beach you might want to look at Surfside. This little niche just north of Miami Beach offers high-end luxury condos such as 87 Park (Still located on Miami Beach), Fendi Residences and the Surfclub Four Seasons. This area is ideal for those who want to live close to the Beach, yet prefer more privacy and tranquility.