This year has seen some of the highest prices ever paid for Miami real estate — including the $25 million sale of a penthouse unit at Miami Beach’s Continuum condominium tower. But the sky-high prices are having something of a “trickle down” effect. The more the ultra-luxury properties sell for, the more the smaller properties nearby, or in the same buildings, bring in.
The latest example is a $3.275 million, or $1,600 a square foot, sale of the two-bedroom unit 3806 at Continuum, which was closed by Coldwell Banker’s Danny Hertzberg.
The deal represented the highest price ever paid for a two-bedroom unit at the building, which is located at 100 South Pointe Drive.
“It’s a trickle down effect,” Hertzberg told The Real Deal. “As the price point moves up dramatically, everything is shifting up — I see that in prime areas like South of Fifth, the Sunset Islands, Star, Palm and Hibiscus islands.”
And it’s having two different impacts on the market.
“It’s very positive in one way — we’re seeing positive trends on the market,” he said. “In the other way, there’s a laddering effect, where, once it goes pending and word goes out, it goes for that much higher.”
It’s also a sign that the summer and autumn slowdown is over, and Miami Beach is returning from off-season traffic.
“Now the season is here,” he said.