The 2019 Forecast for Miami Beach Condos

• We expect the condo hotel market to keep dominating the market below $1M. In 2018, 25% of sales happened in this sub-market. That portion of the market will still be in high demand on the beach as the buyers are either pure investors or oftentimes end-users who value the opportunity to rent out their condo while not in Miami.

• We expect buyers to prefer South of Fifth to the rest of Miami Beach within the high-end of the condo market ($3M – $5M). The South of Fifth market is showing a much lower inventory level (2.5 years) compared to the rest of Miami Beach (6 years).

• The luxury condo market (especially waterfront) is becoming more affordable and is displaying far more realistic asking price per SF compared to 2018 and 2019.

• Several newly built boutique buildings are now on the resale market. The resale price per SqFt is not justifying the high price paid to the developer and offer some great deals for buyers.

• Within the luxury condo market ($5M+) expect a continued amount of increased attention to fall on Mid Beach and Surfside with the introduction of ‘57 Ocean’ which sits on 57th and Collins. Other attention will fall on 87 Park and Fendi Chateau Residences in Surfside.

• Expect to see far more realistic asking prices compared to 2017/2018 for ultra-luxury resale condos such as Faena House and the Edition, which were previously overvalued.

Advice for Miami Beach Condo Buyers

The high levels of inventory provide a very favorable situation for any buyer looking for a solid base of options to buy on the Miami Beach market. We suggest entering the market below market price at any price level as this is still an adjusting market.

It is recommended to avoid the heavily ‘touristic’ sections of the beach (5th to 35th) in favor of more residential sections – unless you are looking for an investment property or short term pied a Terre.

On the higher end of the market we recommend you stay away from condo hotel projects and focus on sizable well renovation condos with direct water views in established buildings which have well run associations: Bath Club is a good example. Our preferred choices mainly sit in Surfside and North Miami Beach but look out for 57 Ocean and Monad Terrace making appearances in the luxury market. As always please call us for unfiltered and precisely analytical advice.

Interesting opportunity in the new Ritz Carlton condo located on N Meridian Ave, which is offering high level finish and waterfront surrounded in a single family environment, starting from around $1000 per Sqft.