Rising Prices Along Miami’s WaterfrontAugust 20, 2015
With a limited amount of land to develop and huge demand, Real estate prices continue to escalate along Miami’s waterfront. In the last five years, the price per square foot for Miami’s highly desirable waterfront properties has nearly doubled or more. With nowhere left to build along the ocean or inter-coastal, developers are turning their attention to the last remaining waterfront in this burgeoning metropolitan area, the river. For purchasers the luxury market remains competitive, and developers are beginning to experience a squeeze. However, Miami’s waterfront luxury market offers a lower price per square foot than comparable U.S. cities such as San Francisco, New York or Los Angeles. In relative terms, Miami is still a very good deal.
The median price in Miami Beach for luxury market single-family homes is $2.8M, and for condos it is $1.95M. Miami Beach properties sell on average in 144 days. In Bal Harbour, the median sale price for single-family homes is $5.425M, and for condos it is $2.69M with properties selling on average in 175 days. In Sunny Isles, the median sale price for single-family homes is $2.43M, and for condos it is $2.1M. Properties are selling quickly averaging 126 days. In Surfside, the median sale price for luxury market single-family homes is $2.45M, and for condos it is $1.8M with properties selling on average in 204 days. Fisher Island condos are selling on average in 168 days with a median sale price of $3M. In Key Biscayne, the median single-family home sale price is $2.75M, and for condos it is $2M. Properties are selling on average in 152 days. Sunny Isles continues to the be one of the hottest areas in Miami to purchase, and Bal Harbour remains one of the most expensive areas.
Despite the cool down in out of the country buyers, there is still tremendous demand for luxury real estate. In the last five years, waterfront areas such as Bal Harbour, Sunny Isles, and Miami Beach have experienced significant growth. Developers have built luxury state-of-the-art luxury condominiums to meet this growing demand. It is also estimated that over 50% of luxury ($1M plus) purchases are still all-cash. In addition, Miami’s homes are selling at a reasonable pace. In general, steady sales are preferred over the bidding wars seen in places such as the Bay area, which can indicate a bubble.