Greg, Both Buyer and Seller in Miami Beach, FL

High End Luxury Ocean Front Condo market in Miami Beach

Asked by Greg, Miami Beach, FL Wed Aug 22, 2007

Nobody talks about the high end luxury ocean front condo market in Miami Beach. It appears that there has been strong appreciation in this high end market while other markets have declined or softened. Why is there not discussion of this differentiation? Will this market also soften or should demand and prices continue to be strong?

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Considering that that is what I do, I think the high-end condo market is very stable. The activity has tapered off, but it is still strong and shows no signs of problems. The reason for this is there is no more land to build on Miami Beach and though inventory has increased more people are considering Miami Beach a "secure" investment.

In a weary market, prime locations and properties are the last to go down and the first to come up.
1 vote Thank Flag Link Wed Aug 22, 2007
There are many reasons for the high end products services and property to maintain a more stable status.

Usually- the well off will buy what they want. Economic dowturns usually don't apply.
0 votes Thank Flag Link Wed Aug 25, 2010
So, here it is three years after you asked the question. A lot of agents, not unexpectedly told you the high end market in Miami Beach is stable. What do you think now?

I'll tell you what I think: it will continue to fall. Want to know why? Because the buyers are not there. Just like with anything else, the high end market in Miami beach is dependent on attracting wealthy buyers. If they can't do it, and they have not [and will not in sufficient numbers], then it has to fall.
0 votes Thank Flag Link Wed Aug 25, 2010
I do a lot of work on Miami Beach, and can tell you that while I wouldn't consider the market to be "strong", I would consider it to be "stable". This is for a number of reasons, but the two most prevelant are that investors didn't flood into this market (as they did in inland Miami) and that Foreign and affluent participation make up a large percentage of the market.
0 votes Thank Flag Link Sun Mar 9, 2008
Dan - Great commentary. Did you see the CNBC and Today Show segments regarding real estate in Miami? I think the Today Show painted a pretty accurate picture. They compared waterfront condos on South Beach versus condos in Downtown Miami or as they referred to it "The Foreclosure District". They made a great analogy using the board game Monopoly, as they referred to a waterfront condo on South Beach as "Boardwalk".

We, as agents, need to continue to inform and educate others on the true picture of real estate in this amazing city, Miami Beach. As I tell everyone I come in contact with... Miami is not the same as Miami Beach.
0 votes Thank Flag Link Tue Mar 4, 2008
The market in Miami Beach has a number micro markets within the metro area. You have a the condo market and within that market you have the run of the mill condos $200 to $500K and the luxury condos $600K and up.

Then you have the non water front condos and the water front condos.

The media which is based in NYC does not know or does not want to know how to break down the market here and explain to the viewers the difference and where the best deals exist.

This is why you have such a panic among out of town owners and buyers who only see the media's perspective of what is going on. The luxury market will always be stronger than the traditional real estate market.
Because luxury home real estate buyers have a ton of disposable income and they can always afford to ride out a storm.
0 votes Thank Flag Link Mon Mar 3, 2008
Once you get over 3million dollar price range in Miami Beach Florida, or just about anywhere else people are not as much affected by the overall market. Lets face it South Beach Florida in that price range you are not going to lose money and there are some great opportunites if you have the cash to take advanage of the hot new condos that are right on the beach.
0 votes Thank Flag Link Tue Dec 25, 2007
I'd agree with Kevin T. ~ When buying, buy quality, quality will stand the test of time and when things do go as planned, you've always got something good. Just about every property type has hit a snag in recent times. When things start getting better, which they no doubt will- The best gets better!
Web Reference:
0 votes Thank Flag Link Fri Dec 21, 2007
Hello to all...

The Miami Beach High End condo market continues to be strong. The only thing we are seeing right now is high levels of inventory, which is affecting the market in general. Due to our wonderful location and year-round tropical climate Miami Beach continues to draw millions of visitors per year, this translates into continued demand for oceanfront condos. Kevin is right on with his response!

I always tell buyers two things...
1) Must buy in a great location, oceanfront or bayfront.
2) Must buy the best unit in the building.
0 votes Thank Flag Link Wed Sep 26, 2007
The media is concerned with talking about the Macro view of things and this means they will talk about generalities. The high end of the market is of little concern to your average Joe. As far as your typical property owner is concerned, the Miami market has declined and is not likely to turn around in the near future.

Regarding the ocean front condo market in Miami Beach, prices haven’t significantly appreciated. Rather, on average they have remained flat which is much better than what his happening in the other parts of the market. The economics of ownership are behind this trend. Owners of luxury oceanfront condos tend to be people who own three or more properties around the world. Unlike their counterparts in the low to mid end of the market, they have the financial strength to wait things out and remain firm on their prices. I have seen this time and time again this year. Many buyers interested in luxury oceanfront condos come to me with the misconception that what they hear from the media applies to the high end of the market and some make low-ball offers without success.
Web Reference:
0 votes Thank Flag Link Sun Sep 16, 2007
I think Kevin answered the question beautifully. The media always concentrates on the negative and we seldom see the good and positive stories about the Real Estate Market. The Luxury market in Miami in general is stable and prime locations will always be "PRIME" - Miami is still an International hub and a great place to live and visit.

In my personal opinion, oceanfront properties will remain strong, nothing like having sand and beautiful sunrises right in your back yard.
0 votes Thank Flag Link Wed Aug 22, 2007
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