May 24, 2013
The ultra-luxury real estate market has seen some record-breaking listings this year. While resales of some of Miami’s most expensive properties have been lingering on the market, buyers have been actively snatching up extravagant penthouses in new developments. Top dollar is being paid for new, “trophy” residences that top luxurious buildings throughout Miami.
Mega-rich buyers are currently gravitating toward pre-construction residences and penthouses in Miami that are designed with them in mind. In Ian Schrager’s Miami Beach Edition, two penthouse units were combined and sold to a single buyer for 34 million dollars. A penthouse at the Faena House is currently on the market for 50 million dollars. Over the past year, the price of these ultra-luxurious residences has climbed to over 3,000 dollars per square foot due to developers reacting to an influx of wealthy international buyers.
However, not all properties are created equal. Some audaciously priced residences have lingered on the market for extended periods of time. For example, the former Versace mansion-Casa Casuarina-has seen two substantial price drops since it’s been on the market. The property was first listed at 125 million dollars, but due to financial problems and a lack of privacy, the mansion is now priced at 75 million dollars.
Source: The New York Times
May 23, 2013
New Yorkers are continuing to purchase vacation homes in South Florida. However, today’s buyers are not just older retirees; younger New York residents are also flocking to the Sunshine State to escape cold, winter weather.
With flight times to Miami comparable to a drive to The Hamptons, the South Florida area is becoming increasingly popular with New Yorkers as an escape from stress-filled jobs and brutal winters. While an ultra-luxury building in New York might run 5,000 dollars per square foot, a deluxe building in Miami runs 3,000 dollars per square foot. When compared to Manhattan, The Hamptons and Martha’s Vineyard, Miami offers good space and extravagant amenities for the money.
New York buyers also tend to prefer South Florida over the Caribbean. The diverse population and vast retail options appeal to New Yorkers who are used to luxury shopping and nightlife. While the Caribbean makes for a relaxing vacation destination, the typical, fast-paced New Yorker appreciates the amenities, services, dining options and nightlife in South Florida.
Source: Real Estate Weekly
May 21, 2013
Strong demand and limited inventory is causing a buying frenzy in South Florida. The real estate boom is reminiscent of 2005 and 2006, except today’s buyers are using cash and heavy equity. Multiple offers are coming in for the current supply of homes and condos, and properties are fetching their asking prices or more.
The coastal and urban areas in Miami-Dade and Broward counties have seen the biggest rebounds, but the surrounding areas are also seeing revved-up interest from buyers. With housing prices continuing to increase amid the decreasing inventory of homes and condos for sale in Miami, buyers are feeling a certain sense of urgency to purchase property before it’s too late.
On the luxury end of the real estate market especially, there is a vast amount of international wealth vying to purchase a limited number of properties. To keep up with this demand, a multitude of luxury buildings are in various stages of planning and construction.
Source: The Miami Herald
May 17, 2013
Brazil has surpassed Canada as the top international source for both visitors and property buyers in Miami. In 2012, Brazilians became the most numerous overseas tourists and the most likely to acquire real estate in Miami. Last year, 690,000 Brazilians visited the city, up 8.8 percent from 2011. They spent an estimated 1.5 billion dollars.
“There is a love affair between Brazilians and Miami, which has helped the economy in both places,” Rolando Aedo, the executive VP of the Greater Miami Office of Tourism and Conventions, stated.
Favorable currency exchange rates and economic growth in Brazil have fueled this trend. More Brazilians have the means to travel internationally than 10 to 20 years ago. Travel is further aided by the multitude of daily flights between Miami and Brazil.
More and more of these visitors are turning into property buyers. Brazilians represented 60 percent of international real estate buyers in Miami last year. 61 percent of Brazilian buyers purchased condos, and 42 percent of those condo buyers purchased the property as a vacation home.
“The impact has been very positive, because it has helped make the real estate industry more dynamic,” Ramos Filho, the consul general of Brazil in Miami, said.
Source: America Economia
May 15, 2013
When Saskia Sasken devised the term “global city” to refer to urban areas vital to the world’s overall economic, cultural and political development, she was referring to cities such as London and New York. However, over 20 years later, the Columbia University sociologist declared Miami to be a remarkable example of global city growth- a notion supported by the city’s booming real estate market.
Real estate in Miami is currently flourishing at record levels. Luxury real estate prices rose by 19.5 percent last year, which is the highest in North America and the fourth highest in the world, only trailing Dubai, Bali and Jakarta. The luxury market (top 5 percent) now averages between 1300 dollars per square foot to 1440 dollars per square foot. Prices are predicted to grow even more this year, as buyers continue to enter the market and supply drops.
While domestic buyers are showing interest in the ultra-luxury properties, foreign buyers continue to make up 60 percent of Miami’s total real estate market. To drive sales and prices, developers are also associating their high-end projects with world-renowned architects. A well-known name, like Zaha Hadid at One Thousand Museum and Herzog and de Meuron at Jade Signature, can add 20 percent to the total price tag. To go along with innovative design, units are also getting bigger, as developers focus on maximum pricing instead of maximum capacity.
With a multitude of new projects in development and prices topping 3000 dollars per square foot at some of the newest buildings, questions have been raised about the market’s stability. However, due to scarcer bank financing, the majority of condo buyers are purchasing in cash with deposits of 50 to 70 percent. These new terms are leading to a stronger, less volatile real estate market.
Source: Financial Times
May 13, 2013
Due to a heated real estate market, developers in Miami are buying up property across the city. Miami’s Edgewater district, located just north of downtown, is the latest area to see a flurry of proposed new construction. With sweeping views of Biscayne Bay and a prime location near Midtown and the Design District, developers have been busy buying up land and pre-construction sales are soaring.
Related Group, a Miami-based developer, recently paid 29 million dollars for a site at NE 31st Street. The same land sold for 11.5 million dollars in 2012. Related plans to build a high-rise condo tower at the location. On a different project, Related broke ground on Icon Bay, luxury condominiums at 428 NE 28th Street, a few weeks ago. Presales of the units started last September, and the building is described as “basically sold out”.
“We’re looking at a couple more deals in the area. We have sites under contract. The views of the water are something in really high demand. It’s something everyone wants and expects in Miami,” Carlos Rosso, president of condo development for Related, stated.
Source: The Miami Herald
May 08, 2013
Miami has been ranked number 10 on fDi Magazine’s list of the Top 10 Overall American Cities of the Future. Miami also ranked 8 for infrastructure, 7 for business friendliness and 8 for economic potential on fDi’s lists of the Top 10 Major American Cities of the Future. The Major American Cities of the Future category is made up of cities with an immediate city population of more than 750,000 people plus a metro area of more than 2 million, or a metro area of more than 4 million people.
Nearby Fort Lauderdale also scored highly on the magazine’s annual lists of the Top American Cities of the Future. It ranked number 7 for economic potential on the list of the Top 10 Small American Cities of the Future. The list includes cities with an immediate city population of 100,000 to 350,000 people.
“This new ranking by fDi Magazine serves as an international recognition that the city of Fort Lauderdale is continuing to move forward on the right track,” Mayor Jack Seiler stated. “The city’s sound fiscal management, progressive economic development initiatives and long-term infrastructure investment strategies have created a high level of optimism that is triggering billions of dollars in private and public investment.”
fDi’s research team created the lists by collecting data for 422 cities under six categories: economic potential, human resources, cost effectiveness, infrastructure, business friendliness and fDi strategy. Cities scored up to a maximum of 10 points under each category, which were weighted by importance in order to compile both the subcategory rankings, as well as the overall American Cities of the Future 2013/14 ranking.
Source: South Florida Business Journal
May 07, 2013
Miami-based developer Alan Ojeda’s Rilea Group is building a new luxury condo tower in the heart of Brickell. The 44-story, 323-unit building known as The Bond is set to rise at 1080 Brickell Avenue in Miami. Construction on the luxury condos will begin as early as August.
The condos in The Bond will range from studios to 3-bedroom units, with prices ranging from 500 dollars to 600 dollars per square foot. So far, the residences have received strong interest. At a pre-construction event, buyers reserved 130 of the luxury units on the spot.
“I’m looking for a very urban, New York/London feel. Not flashy, but solid, sound elegance,” Ojeda stated.
Ojeda has worked with architect Nichols, Brosch, Wurst, Wolfe & Associates on 4 projects. The Bond will feature 2 pools, a fitness center and spa, 24-hour valet and security, a children’s area, a lobby restaurant and a business center.
For more information, contact Niki Higgins at 1.888.242.4422.
Source: The Miami Herald
May 02, 2013
A new, ultra-luxury condo tower is coming to the South-of-Fifth neighborhood in Miami Beach. The building formerly marketed as Kallisto and 120 Ocean will finally rise as Glass Miami Beach. The 18-story luxury tower will have 10 units and wide outdoor terraces.
Designed by architect Rene Gonzalez, the luxury oceanfront condos will feature full-floor layouts and floor-to-ceiling glass, providing 360-degree views of the ocean, Miami Beach, the bay and downtown. Gonzalez plans to work directly with buyers to custom design the interiors of the exclusive units. He hopes to highlight the natural beach surroundings through the design of Glass.
“What was important to us was that the building dematerializes as it goes up, so it becomes lighter, then it starts to almost disappear into the sky,” Gonzalez said. “The building becomes almost a barometer of the environment.”
Developers plan to break ground in August, with a completion date of late 2014 or early 2015. The condos in Glass will range in price from 8 to 9 million dollars, with a 35 million-dollar, 3-story penthouse. Five of the 10 units are already reserved.
Contact Niki Higgins at 1.888.242.4422 for more information on this unique opportunity.
Source: The Miami Herald
April 30, 2013
Previously, the tallest buildings in the world were built to provide office space, while residential buildings lingered in their shadows. However, that is no longer the case. In recent years, luxury residential developers have raced skyward to provide panoramic views for cash-flush global buyers.
In Miami, high-rise, ultra-exclusive residential buildings are fetching record sums, with more new towers in various stages of planning and construction. The New York-based developer Property Markets Group is currently developing Echo Brickell, a 750-ft, 60-story luxury condo building in downtown Miami.
“I believe that everyone wants to be at the top of every building because of the view, “ PMG chief executive Kevin Maloney said. “As you go up in the building, apartments get more expensive so we are trying to get as much of the space as possible out of the base that is locked in and has no view corridor and move it up to the top where it has more value.”
PMG has, thus far, succeeded in that quest. To begin financing the Echo Brickell project, the developer brought 30 of the projected 250 units to market in mid-April. All of those units were reserved in a day, with the top floors fetching 1,750 dollars per square foot. That is more than double the highest price per square foot currently achieved in the Brickell area.
April 15, 2013
After a few years on the market, the price of Lilly Pulitzer’s Palm Beach home has been reduced. Sadly, the fashion designer and noted socialite passed away earlier this month. However, with the recent price reduction and death of the home’s famous owner, the ultimate Pulitzer fan now has a prime opportunity to literally own the designer’s closet.
Originally listed for 11.5 million dollars, the home is comprised of 9,000 square feet and sits on 1.4 acres of land. There is a 4-bedroom main house, a 3-bedroom casita and a 2-bedroom pool house. According to the MLS listing, the lot can be subdivided into 2 lots.
The sprawling estate is currently being marketed as land, which means the home is most likely a teardown. It is on the largest, non-waterfront Estate Section lot, giving potential buyers ample space to renovate or create a new, personal sanctuary.
Source: New York Observer
April 09, 2013
The luxury residential market in Miami-Dade County strengthened over the first quarter, according to a new quarterly report on the overall Miami-Dade residential market by StreetEasy.com. Luxury residential sales saw an increase of 16.3 percent in the first quarter of 2013 compared with a year earlier and an increase of 8.7 percent compared with last quarter.
The luxury residential market is defined as the top 10 percent of transactions in terms of price. Based on closings in the first quarter, the luxury market was made up of sales above 855,000 dollars, an increase of .6 percent since last year. South Beach and Fisher Island accounted for 64.1 percent of luxury closings.
Distressed property sales in Miami-Dade declined 18.8 percent in the first quarter on a year-over-year basis. Distressed condo sales dropped 20 percent compared with last year, and distressed home sales dropped 17.1 percent compared with last year. The median price of distressed sales rose 17.3 percent in the same time frame.
Source: The Miami Herald