Miami Luxury Real Estate Prices Post 3rd Largest Percentage Increase in the World in 2011
The luxury real estate market in Miami had a remarkable year in 2011 and now, thanks to an annual report released by real estate consultants Knight Frank, we know how it compared to other international markets. The Wealth Report 2012 showed that Miami luxury real estate prices in 2011 increased 19.1 percent from the year before. The increase was the third largest when compared to other international luxury real estate markets, well ahead of London and Vancouver. Luxury properties in Miami are finally on the radar of the world’s elite!
New Luxury Listing of the Day
A beautiful 6 bedroom/7 bath waterfront home at 943 N Venetian Drive on the Venetian Islands hit the market earlier today. The asking price is $14.9M for the 9,255 square foot home which sits on a 47,250 square foot lot with 175 feet of water-frontage.
Nestled behind 15ft grandiose wooden gates is a perfectly manicured Mediterranean estate on a rare 47,250 sqft bayfront lot on N.Venetian Dr. This 6BR/7BA home was meticulously renovated by Peter Galo in 2004. Renovated for easy living with open spaces for formal/informal living. Great for entertaining with dining/living and family rooms flowing to the picturesque backyard overlooking 175ft on Biscayne Bay.
New Sales Listing of the Day
Unit 301 at 1800 Club came onto the market earlier today and I’m intrigued for a couple of reasons. One, the price. It’s a corner 3 bedroom/3 bath with 2,189 interior square feet. The asking price is $625,000, or $286 per square foot. That’s an amazing price for a 3 bedroom condo with a direct water view in Greater Downtown Miami. The unit is only on the third floor but as you can see in the picture above, the unit clears the trees and still offers an unobstructed view of Biscayne Bay and Margaret Pace Park. Two, this unit has vaulted ceilings which is unique to units 301 and 401 of all the 01 line units. The listing does not include any pictures but mentions that the unit has tiled floors throughout. It’s definitely worth taking a look at if you’re in the market for a well priced 3 bedroom condo.
As an aside, the current owner closed on the unit in December 2007 which is around the time that 1800 Club was completed. This indicates to me that he/she purchased the unit pre-construction. The purchase price was $688,750 for the unit which means that a loss will be taken.
Miami Home Prices Post Strong Gains for Third Consecutive Month in February
The good news continues to pour in for the Miami real estate market. Earlier today, the Miami Association of Realtors released a report showing that Miami home prices had posted strong gains for a third consecutive month in February. Here’s an excerpt from the press release that was issued:
For the third consecutive month,Miami home prices posted strong gains in February. The median sales price of condominiums in the Miami-Dade County surged 40.4 percent to $131,950 in February compared to a year earlier, according to the 26,000-member MIAMI Association of REALTORS and the local Multiple Listing Service (MLS) system. The median sales price of single-family homes rose 19 percent to $175,000.
“Miami home prices have rebounded sooner and stronger than predicted, which is a very encouraging sign for the Miami real estate market,” said Martha Pomares, 2012 Chairman of the Board of the MIAMI Association of REALTORS. “Months supply of inventory has dipped below 5 months, as housing inventory continues to dwindle. Limited supply should further strengthen home prices.”
The Related Group announces Pre-construction Sales for 1100 Millecento Residences
The Related Group has formally announced plans to develop a 42-story tower called 1100 Millecento Residences. The 382-unit development will be located in Brickell at 1100 South Miami Avenue, just steps from Mary Brickell Village and the upcoming 4 million square foot Brickell Citicentre. Carlos Ott, an internationally recognized architect who designed Jade Beach and Jade Ocean, will be the architect of 1100 Millecento Residences. The interiors will be done by Pininfarina, the legendary designers behind the avant-garde designs of Ferrari, Maserati and Rolls-Royce. Amenities at 1100 Millecento Residences include a 9th floor elevated pool deck with a club room, state-of-the-art fitness center, private theater and 42nd floor rooftop infinity pool with private cabanas.
The building will feature studios, 1 bedrooms, 1 bedroom + den units and 2 bedrooms. Reservations are now being accepted with the following price ranges in mind:
Studios from $226,000-$290,000
One Bedrooms from $286,000-$390,000
One Bedroom + Den units from $326,000-$440,000
Two Bedrooms/1 Bath units from $347,000-$490,000
Two Bedrooms/2 Bath units from $397,000-$550,000
Two Bedrooms/2 Bath + den units from $415,000-$550,000
The deposit structure for 1100 Millecento Residences is as follows:
10% of purchase price at reservation
10% of purchase price at contract (expected to be in June 2012)
15% of purchase price at groundbreaking (expected to be at the end of 2012)
15% of purchase price at top-off (expected to be at the end of 2013)
Balance due at closing (expected to be at the end of 2014)
Contact us if you have any questions about 1100 Millecento Residences or if you would to reserve a unit.
61 Units Re-released at Midtown 2
As some of you may recall, an investment group acquired 539 units at Midtown Miami last October in a bulk transaction. Over 300 of those units are located in the 32-story Midtown 4 tower, 172 units reside in the rental building called Midblock and 61 of those units are located in the 29-story Midtown 2 tower. The investment group recently announced the re-release of the 61 units at Midtown 2 with prices starting at $184,900. Below, you will find the price ranges for the various types of units that are available for sale at Midtown 2. The monthly maintenance fee is 72 cents per square foot. The pricing for units at Midtown 4 is expected to be higher so this will likely be your best opportunity to acquire a unit in one of the towers. Contact us if you would like to schedule an appointment to tour Midtown 2 and/or learn more about the units available for sale. Feel free to download the Midtown 2 fact sheet for an overview of building.
Miami Ranked 4th Priciest City to Rent in the U.S.
As pointed out by Diana Olick in yesterday’s CNBC segment about Miami’s booming real estate market, the rental market in Miami has also been particularly robust. Rental prices have increased significantly over the past 3 years fueled by strong demand and shrinking rental inventory. So much so, in fact, that Miami now ranks as the fourth priciest city to rent in the U.S., according to a data team at John Burns Real Estate Consulting. The team looked at the rent-to-income ratios in 40 major U.S. cities to determine the rankings. In Miami, where the median household income is $45,219, the rent-to-income ratio was 29%. Only San Francisco with 33%, Los Angeles with 36% and New York City with 52% had higher rent-to-income ratios than Miami.
CNBC Reports on the Booming Miami Real Estate Market
For those who missed it, two segments aired on CNBC this afternoon in which Diana Olick reported on the booming real estate market in Miami. She attributes the latest boom to cash buyers from South America, Europe, Russia and China. The surge in demand has prompted developers to start building once again. This time around, however, there is less fear in the marketplace than was present in the last boom. Easy credit is no longer available and the majority of purchases for South Florida real estate are made with cash.
Paramount Bay and Brickell House Hit 60%
I discovered yesterday afternoon that Paramount Bay now has 60% of its total units either sold or under contract. That’s quite an accomplishment seeing that it was only four months ago that sales were launched. The penthouse units at Paramount Bay have all been sold. The next most popular unit has been the 02 line which is a 3 bedroom/3.5 bath condo with 2,353 interior square feet. That’s the largest non-penthouse floor plan at Paramount Bay. Only 3 of those units remain.
For those unfamiliar with the development, Paramount Bay is an all-glass, luxury, waterfront condo development located at 2066 North Bayshore Drive in the Arts District of Miami. The vast majority of the condos at Paramount Bay have a direct water view. A number of great units still remain so don’t hesitate to contact us if you have an interest in touring the building and viewing any current availability that interests you. Paramount Bay is a very high-end, exclusive building and will be a perennial favorite for years to come.
Brickell House, which began accepting pre-construction reservations in October, has 60% of its 374 total units under contract as of last week. The 46-story, luxury condo development will be located at 1300 Brickell Bay Drive across the street from Jade. Sieger Suerez was contracted to serve as the development’s design architect while Yabu Pushelberg and Artefacto will oversee interior design components. To learn more about this pre-construction development, please download the Brickell House brochure or feel free to contact us with any questions that you might have.
These type of success stories demonstrate the current level of demand for new condos in Miami. It’s no wonder that new condo developments are expected to soon be announced.
93% of All Newly Completed Condos in Downtown Miami Now Occupied
The Miami Downtown Development Authority recently released a study showing that of the 22,785 newly completed units in Downtown Miami, 93% of them were occupied as of December 2011. That number is up 7 percentage points from December 2010 in which 86% of the units were occupied. The study focused on those units completed after 2003 located within the Downtown Development Authority District and adjacent areas of influence as shown in the above map. A total of 77 newly completed condominium developments, as defined by the study, are located within these boundaries.
I read through the entire study and wanted to share a few highlights that I found to be rather enlightening:
84% of the newly completed units have closed. (The overall 93% occupancy rate in downtown area condominiums substantially exceeds the number of units sold as a result of developers’ rental of unsold units.)
In 2011, approximately 45% of total sales were first-time new unit sales in new buildings. On average about 140 sales per month were in new buildings in 2011.
Renters account for approximately 56% of occupied units. ( I figured that this would have been slightly higher.)
From 2010 to 2011, the average sales price of new units increased approximately 11.7% to about $420,000
The average price per square foot of new unit sales increased approximately 12.6% from 2010 to about $365 per square foot in 2011.
