Miami Beach Waterfront Real Estate Sales Break Records in Every Sector
I’m an information gatherer. I like doing these stats and market performance posts to better my understanding of the business, but in the last couple of years, it’s also been like witnessing something great – history – and getting to tell the story. This is not just a Miami Beach real estate renaissance or boom. It’s a solid upward trend.
Key Miami Beach Real Estate Factors
- Location, Location, Location
- Supply vs. Demand
I’ve been a real estate agent in Miami Beach for almost 20 years. When authoring this blog, I take special care to let the numbers do the talking, and then I provide the insight and analysis – which the numbers can’t do.
Miami Beach is a special place for all the obvious reasons. But the most important reason real estate-wise is that there is NO MORE Miami Beach land on which to build. I’ve been saying this to buyers and sellers for about the last five years, but now that reality seems to be sinking in – and to this I attribute “The Great Land Grab of 2012.” Miami Beach real estate transactions and prices have hit all-time highs.
Star Island and Indian Creek Village Take the Lead
During the last ten years, Miami Beach has become a luxury destination much like Jackson Hole or Aspen. In the years leading up to 2012, Star Island and Indian Creek Village were always known as the most prestigious neighborhoods in the area, but the true intrinsic worth of these enclaves wasn’t realized monetarily until last year.
The problem was that, for one reason or another, Star Island and Indian Creek Village never dazzled buyers like North Bay Road. For many years, North Bay Road was the most highly sought neighborhood for luxury Miami Beach waterfront real estate, by celebrities and others with the desire for wide-bay views.
Combined Star Island and Indian Creek Village Real Estate Transactions:
|YEAR||# OF SALES||SALES VOLUME|
Average Property Price on Star Island and Indian Creek Village:
- 2012: $18,989,090
- 2011: $13,975,400
- 2010: $8,277,500
- 2009: $10,333,333
- 2008: $7,383,333
Indian Creek Village Breaks Highest-Ever Sale Price – Twice
Prior to the two 2012 Indian Creek Village sales that broke all-time Miami Beach real estate records, the Leona Helmsley lots on Star Island, which sold in 2006 for $27M, was the biggest residential real estate transaction in the history of Miami-Dade and Broward counties. Then in March 2012, 14 Indian Creek sold for $37M, and last July, 3 Indian Creek sold for a staggering $47M.
Complete List of 2012 Miami Beach Luxury Waterfront Sales
What strikes me most is the incredible number of waterfront sales in 2012; we broke another record here with 99 transactions. That’s insane! We also smashed a record with our highest sales volume ever: $602,818,300 – that equals $6,089,073 for the average Miami Beach waterfront home. Talk about stratosphere!
Miami Beach Waterfront Sales Statistics 2008-2012
|YEAR||SALES VOLUME||# OF SALES||$PSF||AVG PRICE PER HOME||# OF LOT SALES||$PSF LOTS/KNOCKDOWNS|
Since 2009, sales volume has increased 256%, and the number of sales has more than doubled. Compared to 2011, sales volume increased 72% last year, and the number of real estate transactions went up by 31% during the same period!
2012 Miami Beach and Indian Creek Land Sales
I have never seen this chart so full in nearly two decades – and with these kinds of numbers! Additionally, there are a number of homes in the “Complete List of Sales” chart above that are slated for demolition and lot splits, or in the case of three parcels on North Bay Road (4666, 4682, 4700), unity of title.
UPDATE 1/12/2013: 2550 Bay Avenue, on Sunset Island II, was sold on 12/31/2012 for $20M. The sale is not yet updated in the tax rolls, but the Warranty Deed from the Miami-Dade County Clerk’s website is available.
The property is comprised of a 46,318-square-foot lot and an approximately 7,000-square-foot house. The new owners plan to demolish the house and build a new one. Ultimately, the buyer paid $432 per square foot for the property, which is an all-time high in terms of price paid per square foot for land (see chart above). The lot is probably one of the ten most important parcels in all of Miami-Dade County.
The buyer, Mr. Markert, is the CEO of Amerisave Mortgage and will be living next to Robert Toll, CEO of Toll Brothers, Inc. Mr. Toll bought his lot(s) in 2008 for $22.5M and paid the second highest price ever for Miami Beach land. The 84,000-square-foot lot is comprised of FIVE lots on the tip of Sunset Island II.
The grand total for homes and land purchased in Miami Beach and Indian Creek Village in 2012 is $699,313,300.
Sexiest Estate for Sale in Miami Beach
A-Rod’s modern estate on North Bay Road certainly fits the bill. It was party and celeb central during Art Basel. Thank God that’s over. This city will kill ya… party after party after party. The newly-built, modern estate was constructed in 2011 and commands a very prime piece of North Bay Road. Ask: $38M.
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