The Changing Face of the Miami Beach Condo Market in 2022

What is going on with the Miami beach condo market in 2022?

Trends and patterns

What is going on with the Miami Beach condo market and what are the trends we see happening in 2022? The market is so hot right now, lots of changes have happened in the last two years that have changed the Miami Beach condo market. We created this video to help buyers and sellers to make sense of the market. Insightful advice from two top producing realtors and market analysts who spend their days on the ground speaking with buyers and sellers.

Is it time to sell your Miami Beach condo in 2023?

The Changing Face of the Miami Beach Condo Market in 2022

What’s Happening in Miami Beach Condo Market?

One of the biggest shifts in the Miami Beach condo market is the shift from secondary to primary market. In the past most of the market was a second home market. So people would use their units once or twice a year and in some cases rent their units out. These days, many of our buyers are relocation buyers who buy these units as primary residences or still as a secondary residence, but with the intention to spend more time in the unit.  This trend has been developing since Q4 of 2020 and continued in 2021 with relocating buyers from NYC, Chicago, New Jersey, LA and San Francisco.  As the type of buyers have changed, the demand for units has changed. People are looking for larger units that offer them comfort and allows them to reside in that unit for longer periods of time.

Now borders are open again we are seeing the Latin and European buyers flock in again. Our listing in Sunny Isles Beach got 10 showings this weekend. 8 Of the 10 potential buyers were foreign. We predicted this new (second) wave of foreign buyers in one of our previous videos and it is happening right now.

While supply was already at a record low, the strong demand from international buyers is now creating additional pressure on the market as supply is hardly present and demand does not seem to stop. With the ongoing demand and the fact nobody is listing their units, we do not see the prices decrease any time soon.

The Changing Face of the Miami Beach Condo Market in 2022 | A depleting inventory is the result of domestic and international buyers looking for Miami Beach condos for sale.

The 2022 Miami Real Estate Forecast | Part 1 Is this Market Sustainable?

The 2022 Miami Real Estate Forecast | Part 2 The Macro-Economic Market

Guidance for Buyers and Sellers

The current market is showing extreme numbers and this is a great market to be a seller. Especially in desired areas such as South of Fifth where condos values have increased considerably (40%)  and barely any new product is expected to hit the market. New peaks are being reached and the demand is still strong. Buildings like Eighy Seven Park have seen record breaking sales of almost $4,000 per SF for an off-market unit to which we brought the buyer. The buyer wanted a rarely available 02 line and only one person wanted to sell.

Other desired condos like Continuum on South Beach used to sell for approx. $1,500 per SF and is now 40% up. This is not a trend, but rather a new reality. The strength of the current demand is high and the type of buyer is different. That is why we call this the changing face of the Miami Beach condo market. We are dealing less with snowbirds and more with primary home owners, looking for main residences. Presenting an offer to an investor is very different than presenting an offer to a primary owner in a very dry market.  Primary owners tend to stay longer in their unit and less eager to sell. In order for them to move, a really good offer is needed. This is one of the reasons the market values are increasing.

For the investor classes: Miami Beach is now offering great return on investment as well as asset appreciation cause the demand is there and there is simply no supply.

The Changing Face of the Miami Beach Condo Market in 2022

The Changing Face of the Miami Beach Condo Market in 2022 | Increasing market values in the South of Fifth condo market.

The Miami Beach Rental Market in 2022

The rental market is very much linked to the sales market. People that used to look for a rental property for 4 to 6 months are not finding any inventory. Snowbirds and buyers and other seasonal visitors are now pushed into buying a property as there is simply no inventory.

Those who do continue to rent are finding a market that has increased considerably in price. What used to rent for $12K per month in Miami Beach’s peak winter season is now renting for $20K per month. That is a 66% increase!  Three bedroom condos are now renting for $40K to $50K per month. On average we are finding that rental values have increased by 30% to 40%.  Three bedroom condos in South of Fifth have always been very short in inventory and are now more than ever receiving top dollar. As there is barely any inventory and most of the pre-construction condos have already been sold out, recently announced condos like Five Park have been very well received. Five Park is just a crosswalk away from South of Fifth and offers many larger, 3+ bedroom units.

What is Condo Geeks?

Condo Geeks is a brand new and sophisticated tool, which is essentially a Bloomberg terminal for real estate. The tool empowers you to analyze entire neighborhoods, individual condos or a selection of condos. It provides users with the ability to look at the performance of a neighborhood / condo over time (amount of sales, prices per SF, discounts given and days on market) or to compare neighborhoods / condos to one another. It is essentially the best tool for consumers to see what a market is doing.

New Construction Condos in Miami Beach

There are not many pre-construction condos being built on Miami Beach. Three of the newest projects which were 57 Ocean, Monad Terrace and Eigthy Seven Park are already sold out.

  • Five Park
    • Five Park is a brand new construction condo that will be erected on 500 Alton Rd in Miami Beach. This brand new condo will offer 98 residences, which makes it a low density project.  Five Park offers 98 two-to-five bedroom fully-finished residences from 1,434SF to 6,000SF with unparalleled views of the ocean, bay, and Miami Skyline.
  • Monaco Yacht Club and Residences 
    • Monaco is a 12-story, waterfront, residential building offering only 39, 1- to 4-bedroom residences, including two penthouses, ranging from 918 to 4,817 square feet. The condo comes with a private marina. Only a few units are left at this new Miami Beach construction condo.

Finding Product in this Market

Many buyers call us saying they cannot find anything online when using Zillow or Realtor.com. In the current market many of the deals are done off-market. As everyone is chasing the same units, top brokers call each other to see what they have coming up. In this dry market, more than ever, having a good buyers agent matters. Besides connections with other agents we reach out to sellers directly. Our buyers tell us what they need and we go out and look for it. Like the example I mentioned before of a buyer looking for an 02 line and we got him one. A very labour intensive activity and certainly not something most agents do. Unusual times require unusual approaches.

For more information on the Miami Beach condo market contact the David Siddons Group

David Siddons | 305.508.0899 | David@siddonsgroup.com
Stefania Cambarau | 305.965.1232 | stefania@siddonsgroup.com

David Siddons is a top producing Miami realtor with Douglas Elliman Florida. David is known as a market analyst and he is the author of several of Miami’s most influential real estate reports and forecasts. Stefania Cambarau is the group’s Miami Beach expert who has lived in Miami Beach (South of Fifth) for over a decade.

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!

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