South Beach Condo Index – November 2007

November 14, 2007

The following data was collected on Sunday, November 11, 2007. The average price per square foot of condos currently listed in the following 19 developments in South Beach dropped from last month’s average. In fact, it even dipped below September’s average. It went from $889.83 per square foot, in October, to $886.71, for this month. The September average price per square foot was $887.60. The weight-adjusted average also slid slightly to $773.67 from last month’s weighted average of $773.73. Below, you will find the average price per square foot of condos listed in the following 19 condo developments in South Beach:

• 1500 Ocean Drive – 1500 Ocean Dr | 33139 | $1,141.04
• Bentley Bay – 520 & 540 West Ave | 33139 | $778.38
• Hilton Bentley Miami Beach – 101 Ocean Dr | 33139 | $1,219.12
• Continuum South Tower – 100 S Pointe Dr | 33139 | $1,291.60
• The Cosmopolitan – 110 Washington Ave | 33139 | $579.18
• Courts at South Beach – 140 Jefferson Ave | 33139 | $537.55
• The Decoplage – 100 Lincoln Rd | 33139 | $660.46
• The Floridian – 650 West Ave | 33139 | $558.87
• Grand Venetian – 10 Venetian Wy | 33139 | $589.32
• Icon South Beach – 450 Alton Rd | 33139 | $892.04
• Il Villaggio – 1455 Ocean Dr | 33139 | $1,626.14
• Meridian Lofts – 2001 Meridian Ave | 33139 | $531.69
• Mirador 1000 & 1200 – 1000 & 1200 West Ave | 33139 | $439.78
• Murano at Portofino – 1000 S Pointe Dr | 33139 | $1,142.96
• Murano Grande – 400 Alton Rd | 33139 | $830.83
• Portofino Tower – 300 S Pointe Dr | 33139 | $892.47
• Setai South Beach – 101 20 St | 33139 | $1,906.34
• Waverly at South Beach – 1330 West Ave | 33139 | $528.54
• Yacht Club at Portofino – 90 Alton Rd | 33139 | $701.11

The average price per square foot of condos sold over the previous six months has gone down from $787.01 per square foot to $775.74. Once again, Meridian Lofts didn’t have any closed sales within the last six months which is why you will find the “N/A” below. If Meridian Lofts were included in the average this month, at its previous average price per square foot of $434.78 in September, then the average price of condos sold in this index would have dropped from $768.47, last month, to $757.80, this month. Below, you will find the average price per square foot of condos that have sold within the last six months in the following 19 developments in South Beach:

• 1500 Ocean Drive – 1500 Ocean Dr | 33139 | $946.39
• Bentley Bay – 520 & 540 West Ave | 33139 | $654.75
• Bentley Hilton – 101 Ocean Dr | 33139 | $1,056.76
• Continuum South Tower – 100 S Pointe Dr | 33139 | $1,050.00
• Cosmopolitan – 110 Washington Ave | 33139 | $521.61
• Courts at South Beach – 140 Jefferson Ave | 33139 | $456.52
• The Decoplage – 100 Lincoln Rd | 33139 | $508.06
• The Floridian – 650 West Ave | 33139 | $551.03
• Grand Venetian – 10 Venetian Wy | 33139 | $465.92
• Icon South Beach – 450 Alton Rd | 33139 | $777.97
• Il Villaggio – 1455 Ocean Dr | 33139 | $1,217.60
• Meridian Lofts – 2001 Meridian Ave | 33139 | N/A
• Mirador 1000 & 1200 – 1000 & 1200 West Ave | 33139 | $397.71
• Murano at Portofino – 1000 S Pointe Dr | 33139 | $1,040.34
• Murano Grande – 400 Alton Rd | 33139 | $721.85
• Portofino Tower – 300 S Pointe Dr | 33139 | $1,014.26
• Setai South Beach – 101 20 St | 33139 | $1,494.92
• Waverly at South Beach – 1330 West Ave | 33139 | $475.99
• Yacht Club at Portofino – 90 Alton Rd | 33139 | $611.65

As with the Brickell and Brickell Key condo indices, I have provided the graph below to make it easier for everyone to make sense of the statistics above. If you can’t read the numbers below then you need to upgrade your glasses to a set of binoculars. Otherwise, right-click and save the graph below and blow it up to as big as you’d like.

The first column, to the right of each condo development’s name, is the difference in the average sales and list prices for the statistics at the top, expressed as a percentage. With the exception of Portofino Tower and The Floridian, the average sales prices are well below the average list prices in these 19 developments. Portofino Tower had a condo sell for $1,505 per square foot on June 29, 2007. Once that transaction falls off the average in January, we shall see Portofino Tower begin to show its true colors. Average list and sales prices at The Floridian are merging together because the high number of short-sales that are available at The Floridian. Once a few of these actually close, the average sales price will fall well below the average list price.

The second column is the number of active listings in each development currently in the MLS. The third column shows the percentage that these listings represent over the total number of condo units in each development. The cells highlighted in green reveal those developments that have active listings that represent less than 10 percent of the the overall units in the building. I find this to be a very healthy number. 1500 Ocean Drive, Courts at South Beach, The Decoplage, Grand Venetian, Il Villaggio and Murano at Portofino fall into this territory.

The 10-15 percent range is considered average while the 15-20 percent range is beginning to approach dangerous levels. The ones highlighted in red reveal those developments that have active listings that represent over 20 percent of the overall units in the building. This indicates that the danger zone has been breached and caution should be heeded. Of the 19 condo developments in the South Beach Condo Index, Bentley Bay, Murano Grande and Setai South Beach fall into this red zone area.

The fourth column shows the number of pending sales while the fifth column displays the number of closed sales since October’s South Beach Condo Index. As you can see, there are 31 pending sales in South Beach. There’s been a total of 13 closed sales within the last month, which matches last month’s figure. Icon South Beach, with 3 closed sales, is beginning to show some spirit. There was a recent article in the papers that stated that former NFL quarterback Michael Vick, recently acquired a pricey condo at Icon South Beach. I’m pretty sure that the neighbors won’t be pleased by all of the dog barking until he begins to serve his time. Woof, woof!!!

The sixth column shows you the difference in the average list prices from this and last month’s, expressed a percentage. Those highlighted in red reveal those condo buildings which had a drop in their average list price, those highlighted in green show those that had an increase while those highlighted in yellow reveal a stalemate from last month’s figures. As you can see, Meridian Lofts had an 11.44 percent drop. That’s probably because it hasn’t had any closed sales within the last six months. Time to drop prices!

The seventh column reveals the difference in average sales prices from this and last month’s, expressed as a percentage. The color scheme remains the same. Sales prices at Bentley Bay spiked up 7.33 percent because a transaction that took place on May 8, 2007 at $476 per square foot fell off the average. The Setai South Beach took a beating this month, with a 9.71 percent drop from last month’s average. This is mainly attributed to a Penthouse unit that sold for $1,851 per square foot falling off the average this past month.

Pending sales have increased to 31 from last month’s figure of 25. It looks like the off-peak months have begun to knock boots with the on-peak months. Just wait until January. I promise that you’ll begin to see more pending and closed sales during those months.