Are There Any Luxury Condo Deals In South Florida's Coastal Markets?
This is a ranking of the 17 South Florida coastal luxury condo markets from an investors perspective.
We crunch a lot of statistics each week and then publish a series of reports with our findings on CondoVultures.com. If you want the reports emailed to you, just sign up for the Miami Condo Market Intelligence Report With Peter Zalewski™ newsletter at: PeterZalewski.substack.com
South Florida investors who are searching for unrealized value in the luxury condo market in the coastal tricounty region of Miami-Dade, Broward and Palm Beach have to increasingly get creative.
Rising property values from strong demand, skyrocketing insurance prices following the Surfside condo collapse disaster and high interest rates from a series of hikes by the Federal Reserve have made it more challenging for investors.
Industry watchers are at odds as to the direction of the South Florida housing market in 2024 after transactions came to a standstill in the second half of 2023.
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Bullish investors are predicting housing demand will reignite once interest rates begin to fall. Bearish investors contend that home prices are too high and likely to collapse in the months ahead.
To better understand whether the statistics support the bulls or the bears, we have run the numbers during the last four months. We have collected the key statistics on condos, luxury condos and rentals for all 17 coastal markets, stretching from Miami’s Coconut Grove north to Downtown West Palm Beach And The Island.
All of our statistics have been published in a series of reports posted on this website between January and early May.
Now, we are combining all of the previously compiled condo and rental statistics to create a series of reports to better identify the best and worst markets in South Florida based on the numbers.
Before revealing our findings, it is important to spell out our approach.
Firstly, investors have the goal of purchasing residential properties that provide an annual return and may even sell at a higher price in the future. Alternatively, speculators purchase residential properties in hopes of reselling their units at a substantial premium in the future. Annual returns, however, are desired but not a necessity for speculators.
Secondly, it can be challenging to compare pricing in areas that are as vastly different as Miami’s Little Havana and the Downtown Boca Raton And Beach market in Palm Beach County.
To overcome this obstacle, we are ranking South Florida’s 17 coastal condo markets based on the average price per square foot rather than price per unit.
After all, condos - even the luxurious ones - are closer to commodities than unique works of art.
Thirdly, the term “luxury” is quite common in South Florida whether it is being used to describe condos, cars or cocktails. To better measure the luxury condo market, we use the arbitrary dollar amount of $1 million to differentiate luxury from common. These rankings are based on South Florida condos that are - or were - priced for at least $1 million each.
All this being said, here is a pared-down chart ranking South Florida’s 17 coastal luxury condo markets based on the average asking prices per square foot. For investors, the lower the price per square foot, the better.
In addition to the average price per square foot, another factor to consider - from a negotiating perspective - when searching for value in the luxury condo market is the number of days that it takes to sell units.
Here is a pared-down chart ranking South Florida’s 17 coastal luxury condo markets based on the average number of days - and counting - that units are listed for resale. For investors, the longer luxury condos are listed for resale, the better the chances are the sellers may be willing to negotiate.
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