In downtown real estate, just add water

Miami /
Apr.April 06, 2011 07:14 PM
Marquis Miami

Miami’s high-end real estate market has developed a typical buyer profile: wealthy, probably from South America (especially Brazil), and looking to take advantage of a strong currency for a second home.

New numbers from 2010 show another trend: these buyers are looking for waterfront properties, and they’re willing to pay a premium for them.

“It primarily goes to the age-old rule of location, location, location,” said Beth Butler, president of One Sotheby’s International Realty. “Waterfront is always going to be desirable, and when you’ve gone through the market downturn like we have, waterfront is the last to fall, and the first to bounce back.”

According to a “Trends” report compiled by One Sotheby’s, buyers paid a premium to be closer to the water in 2010, with a jump in waterfront sales and a drastic divide between properties on the water and those that are not.

In Brickell, for example, 612 waterfront condo units sold in 2010, for an average price of $408,119. Just 218 non-waterfront properties sold for an average of $194,003, according to the report, which is based on MLS data.

In downtown Miami, the numbers were similar. There were 150 condo units sold along downtown Miami’s waterfront last year, for an average sales price of $243,564. Off the water, 71 condos sold with an average sales price of $196,290.

“There’s no question that the waterfront properties are more desirable, especially by international buyers,” said EWM President Ron Shuffield.

Of course, there are substantially more properties on the water in Miami than existed five or ten years ago.

The waterfront-non-waterfront divide, as seen in the downtown-Brickell microcosm, is part of a growing trend that has buyers still looking for properties on the east side of the I-95 divide.

“When you look at [the data], especially the 20-something, 30-something buyer, it seems like the overwhelming majority of people in those age brackets are looking at the east side, both in Dade and Broward,” Shuffield said.

Brickell’s waterfront sales (all of which are condos) jumped 23 percent last year, along with a 12 percent jump for non-waterfront, downtown Miami actually saw 21 percent fewer sales in each category, likely a sign of decreased inventory, and a sign prices could be increasing, Butler said.

“As inventory decreases, ultimately what will happen sometime this year, whether it’s [second quarter] or later, you’ll see the prices increase a bit in on the waterfront. If somebody wants waterfront, they’ll pay a little more than they did last year.”

According to One Sotheby’s, just 5,000 units remain on the market in downtown Miami, which began the downturn with as many as 62,000 projected to be constructed after 2005. By the last quarter of last year, only 17,502 were completed.

 As inventory falls, however, buyers will move west, looking towards buildings with water views if they can’t find ones with direct water frontage, Shuffield said.

“A lot of people are looking as much for a water view across from the bay from downtown Brickell as they are looking to be on the beach,” he said.


Related Articles

arrow_forward_ios
Ron Shuffield and Alirio Torrealba with a rendering of Biltmore Row (EWM, Twitter/MG)

EWM takes over sales of MG Developer’s Biltmore Square townhomes in Coral Gables

EWM takes over sales of MG Developer’s Biltmore Square townhomes in Coral Gables
1722 Southwest 18th Street (Realtor)

Buyer beware, or maybe not? Homebuyer sues agents, brokerage over listing information

Buyer beware, or maybe not? Homebuyer sues agents, brokerage over listing information
From left: The Fairchild, Riley Smith, Oscar Rodriguez and Ricardo Vadia

Riley Smith team takes over sales of the Fairchild in Coconut Grove

Riley Smith team takes over sales of the Fairchild in Coconut Grove
From left: Sid Koslovsky and Felipe Azenha

Movers & Shakers: Aventura broker joins Berkshire EWM & more

Movers & Shakers: Aventura broker joins Berkshire EWM & more
Watch Miami’s big brokerage chiefs today on TRD Talks Live

Watch Miami’s big brokerage chiefs today on TRD Talks Live

Watch Miami’s big brokerage chiefs today on TRD Talks Live
Techrin Hijazi with Brown Harris Stevens Miami, and Ivan Ramirez with Royal Palm Residences sales team

Movers & Shakers: Techrin Hijazi joins BHS Miami, Royal Palm project names sales team & more

Movers & Shakers: Techrin Hijazi joins BHS Miami, Royal Palm project names sales team & more
Henry Torres and Merrick Manor

Merrick Manor hires Berkshire EWM to take over sales

Merrick Manor hires Berkshire EWM to take over sales
Ron Shuffield and Oscar Arellano

Longtime Fortune International Realty agent joins Berkshire EWM

Longtime Fortune International Realty agent joins Berkshire EWM
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...