Category Archives: Gold Coast

Collins Ave. from 22nd street to 44th street

2014 Miami Beach Luxury Waterfront Real Estate Sales – Prices Surge on Low Inventory and 2015 Predictions

It feels good to be back. This stuff is in my blood. I focus on a very specific niche of Miami luxury real estate: Miami Beach and Indian Creek luxury real estate. This market takes me from South Beach to the three pill-shaped islands — Star, Palm and Hibiscus Islands:
Miami Beach Waterfront Estates

  • Venetian Islands
  • North Bay Road (lower, middle, upper)
  • Sunset Islands
  • Mid-beach waterfront
  • Pinetree & Flamingo
  • La Gorce Island
  • Allison Island (residential side)
  • Indian Creek Island

I don’t include Normandy Village or the town of Surfside in waterfront real estate sales, as these areas represent “starter waterfront” and really aren’t considered an option for “UHNWI” (ultra-high-net-worth individuals).

Where to start? 2014 was pretty much more of the same. Very strong year with 81 home sales. We are still dealing with a lack of inventory in the Miami Beach single family home sector. How can I tell? Well, the year-over-year sales price per square foot jumped 16% in 2014 to $1,126. Days on market decreased from 241 in 2013 to 193 last year. Here’s an analysis of how sales price per square foot has shifted over the last five years or so.

Miami Beach and Indian Creek Island Waterfront Sales – Residential Homes and Vacant Land/Knock-downs

YEAR SALES VOLUME # OF SALES $PSF AVG PRICE PER HOME # OF LOT SALES $PSF LOTS-KNOCK-DOWNS SALES VOLUME/LOTS
2014 $556,608,650 81 $1,125 $6,763,530 25 $339 $181,555,000
2013 $520,037,050 90 $946 $5,778,440 11 $285 $75,105,000
2012 $602,818,300 99 $887 $6,089,073 10 $211 $96,495,000
2011 $351,263,033 75 $769 $4,683,507 N/A N/A N/A
2010 $226,854,000 53 $710 $4,280,264 N/A N/A N/A
2009 $169,331,447 42 $702 $4,031,701 N/A N/A N/A
2008 $245,777,500 49 $934 $5,015,867 N/A N/A N/A

I have not tracked land sales prior to 2012 because the numbers were insignificant. But in the chart above, you can see how notable they’ve become over the last three years. I remember when land would sell for UNDER $100 per square foot just before 2012.

2015 Luxury Waterfront Home Sales in Miami Beach/Indian Creek Island – Estates and Land

2014 homes

The Ever-Increasing, Ferocious Desire for LAND

land 2014

Miami: The City of the Future

I love to drive. Yes, even in Miami traffic, I drive… on Collins Avenue, Biscayne Blvd and Wynwood… through Craig Robins’ masterful transformation of the Design District – which is becoming Miami’s Worth Avenue… and along the awe-inspiring swirls of concrete in Doral at the intersection of SR 826 and 836. No matter where I am, my mind is completely blown by the incredible amount of money being pumped into this city by the TRILLIONS.

Even after 20 years in the business, I am amazed by the number of chic, UBER-expensive condos being designed by the most important architects in the WORLD. We have at least 5 five- and six-star condos from Pritzker Prize-winning architects such as Richard Meier, Norman Foster, Rem Koolhaas, Herzog & de Meuron and Zaha Hadid – her first residential project in the Western Hemisphere.

There is no real estate bubble here. People just WANT Miami. It’s just as simple as that. I was further emboldened by Time magazine’s declaration in its December 2014 issue that land and condos in Miami will prove to be one of the four premium commodities of 2015.

My prediction this year for the Miami Beach real estate market is that 1) Inventory will continue to be scarce 2) Days on market will continue to drop, and 3) Price per square foot for homes and land is headed for another healthy bump.

Hey New York City – you’ve got a lot of ground to make up because Miami is on it.

Browse Miami Beach real estate here

Related Reading:

 

Stratosphere: 2012 Miami Beach Waterfront Real Estate Sales Soar to Heights Unseen- UPDATED

Miami Beach Waterfront Real Estate Sales Break Records in Every Sector

Miami Beach Waterfront Sales 2012

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
2012 11 $208,880,000
2011 7 $97,827,500
2010 2 $16,555,000
2009 3 $31,000,000
2008 3 $22,150,000


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

Waterfront 2012 Miami Beach real estate luxury 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
2012 $602,818,300 99 $887 $6,089,073
2011 $351,263,033 75 $769 $4,683,507
2010 $226,854,000 53 $710 $4,280,264
2009 $169,331,447 42 $702 $4,031,701
2008 $245,777,500 49 $934 $5,015,867

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

Miami Beach real estate waterfront land sales 2012 updated

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.

Grand Total

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.

Related Reading: