This is the first installment of Miami Beach/South Beach condo market statistics. The data was based on information from the Southeast Florida Regional (SEFR) MLS or from the associations participating in the SEFR for the period 1/1/07 through 9/3/2007.
This analysis covers the luxury high-rise condos South of Fifth Street (SoFi) in South Beach; ICON South Beach, Murano Grande, Yacht Club at Portofino, Murano at Portofino, Portofino Tower, South Pointe Tower, and Continuum I.
It seems that Murano Grande has had an unusually high amount of sales compared to the rest of the buildings in the neighborhood. There are probably many factors that are contributing to this. The amount of inventory available in Murano Grande condo may be one of the factors which would account for owners pricing their properties more towards the actual market value.
It is generally accepted that in a “normal market” 10% of the building inventory would be available for sale at any given time; the average for all seven buildings is 12.9%. I would consider the amount of inventory not to be alarming. In the event that inventory continues to grow and the rate of sales continues at today’s pace, this would put downward pressure on the $ PSF because real estate is primarily governed by the law of supply and demand.
This graph indicates why ICON South Beach is lagging in sales. I would consider ICON & Murano Grande “sister buildings.” They sell at nearly the same price ($ PSF), yet the list prices at ICON are over $60 PSF higher, on average, than Murano Grande.
“Fat Factor” is computed by taking the $ PSF List Price and subtracting the $ PSF Sold Price.
So What’s the Best Deal?
Ok, Portofino Tower has great comps and from the “Fat Factor” graph it seems like the owners are generally reasonable with their pricing. There is a large inventory of units on the market and a low number of sales. I bet there are a lot of anxious owners ready to sell at Portofino.
Continuum I is a really good buy for being an oceanfront building. Sales are hovering just above $1K PSF and with Continuum II coming on-line later this year, most of those units will be over $1200 PSF.
Next post will be on absorbtion rates for the buildings South of Fifth.