Real Estate NewsLetters Archive

SOUTH BEACH CONDO MARKET ANALYSIS

After the pandemic hit the U.S, the condo market has been extremely affected, and the volume of sales in South Beach condos is plunging compared to 2019.

This month I'm exposing the stats in terms of volume of sales for the first semester of 2020 compared to 2019 in some of the most renowned condos in South Beach.

On a general basis, there was a drop in the volume of sales by -30.6% in the first 6 months of this year compared to the same period in 2019. The price/sqft also had an overall decrease of -21.4%, which shows a really negative performance of the market.

Out of the 13 condos studied, only 2 of them showed an increase in the volume of sales, which were the Icon South Beach condo, and the Murano Grande condo. The Icon showed the best performance this semester with an increase of 166% and an increase in the price/sqft of 30.4%. On the other hand, the condos with the worst volume of sales performance were the Apogee Condo, the Sunset Harbour Towers, and the South Pointe Towers with a -100%, - 71.4%, and -66.7% respectively.

Some other condos like the Yacht Club at Portofino and the Continuum North Condo lost -58.3% and -57.1% respectively.

Some condos that showed a decrease in the volume of sales had an increase in the price/sqft. For instance, the South Pointe Towers had an increase of 35.4% in the price/sqft as well as the Yacht Club at Portofino with a 30.4% increase. It means that only the remodeled and best units in those condos made it to the finish line.



SHORT-TERM RENTALS APPROVED AGAIN IN MIAMI BEACH

Short term rentals were banned in Miami Beach due to COVID-19 emergency orders, but complaints from condo-hotel owners and some other short-term allowed condo landlords were pilling up due to huge income losses.

After the re-surge of COVID-19 cases in Miami in mid-July, Miami Beach orders authorized hotels to reopen with restrictions, but short term renters didn't have the same treatment, and only rentals over 6 months were allowed.

This regulation was effective for the entire city, but Miami-Dade eased this regulation at the beginning of August and after having a virtual meeting between concerned vocational renters, commissioners, and the City Manager, the city of Miami Beach decided to amend the regulation too and allow once again short term rentals effective August 21st under capacity and hygiene restrictions. Capacity regulations don't allow more than 4 people per room or 6 if the lessees belong to the same family.

In the meeting, several concerns were brought to the table, as condo owners affirmed there was no reason for their properties to be treated differently than hotel rooms. They argued that they are keeping the same safety measurements, and some condo-hotel owners are even located in the same building but were still not being able to lease their properties. This created a competitive disadvantage, which is why the city manager decided to approve their request and allow short term rentals again.



DEMAND FOR LUXURY MIAMI HOMES KEEPS RISING

Back in April, COVID-19 created a wave of wealthy New Yorkers to come down in Miami, as they preferred to be locked down in a large Miami House in neighborhoods like Coral Gables or Miami Shores, instead of a high rise in Manhattan. We all thought this would be something temporary during the lockdown, but more and more high-income northeasters are moving to the Sunshine State permanently.

The supply for luxury properties in Miami is quickly dropping, and closed deals for properties above $1 million in Miami have more than double in 2020 compared to 2019, with an increase of 68%.

In the first half of July, the amount of units under contract has increased by 88% with 162 signed contracts in Miami-Dade.

The favorable tax laws in Florida have made it a perfect spot where to relocate for rich individuals, but with the pandemic, this pattern has become stronger, as if everything shuts down again, Miami offers more spacious properties with better weather and private amenities. COVID-19 is now the straw that broke the camel's back for wealthy individuals planning on moving to Miami.

Being in crowded cities like New York or Chicago is not a must anymore for executives, as remote work has shown a big success. Some luxury houses that have been sitting on the market for years are now finding buyers looking for a better lifestyle in Miami and sellers couldn't be happier.



JOIA RESTAURANT

Joia beach has opened 2 months ago and it's exactly what Miami needed. An an innovative concept that brings together incredible fresh food, entertainment, and relaxation on the water in one same venue.

Located in the heart of Miami Beach, the recently launched Joia restaurant is a place that wants to be more than a simple restaurant. Surrounded by nature, this small paradise will make you think you went on vacation for a day.

You have to visit this restaurant in Jungle Island where you'll be able to spend all day enjoying different plans for all ages including a full beach service of food and beverages, board games, swimming activities and more!

Being the ultimate getaway, you'll be able to enjoy this beachfront where you can spend the whole day with European food, refreshing cocktails, and a unique jungle setting.

There are 2 different food menus, one for the beach and the other one only for the Palapa (covered terrace). If you are not sure what to ask for, my recommended choice is the greek salad which has very flavory tomatoes and the Dove sole which was exquisite.





DEAL OF THE MONTH: YACHT CLUB AT PORTOFINO #908

Price: $499,000

1 bed / 1 bath

BEST PRICED unit with bay views

780 sqft

$639/sqft

Maintenance fees: $717/ month