The Real Deal Miami

Sunny Isles Beach’s ultra high-end condo market has a big inventory problem: report

Sunny Isles is facing 17 years of supply of units priced at $5M and up
By Katherine Kallergis | September 19, 2018 12:35PM

Sunny Isles Beach and a condo (Credit: Pixabay, Wikimedia Commons)

Sunny Isles Beach is saddled with 17 years of inventory of condos priced at $5 million and up, and overall, Miami-Dade County faces nearly five years of supply of high-end units, according to a new report.

Of the 348 units listed for sale on the Southeast Florida Regional Multiple Listing Service as of Aug. 31, about 30 percent, or 103 units, are in Sunny Isles Beach. Based on the six recorded sales between August 2017 and August 2018, that means that Sunny Isles is facing 206 months — or 17 years — of supply of the ultra high-end condos, said Ron Shuffield, president and CEO of EWM Realty International, which created the report.

In Miami Beach, 82 units asking $5 million and up were on the market as of the end of August, which comes out to about 2.6 years of supply based on about 2.5 units selling per month over the past year.

More than half of the available inventory is concentrated in Sunny Isles Beach and Miami Beach.

In Key Biscayne, 14 units are on the market with about two years of supply, Shuffield said.

Despite the excess inventory, Shuffield said sales of those $5 million-and-up units increased by 50 percent year-over-year as of Aug. 31 in Miami-Dade. The available supply fell from 98 months to 58 months. Pricing units correctly is key to that, he said.

The report does not include the preconstruction market, but developers are cutting deals with buyers, and Shuffield said that the new owners of new development units are reselling their condos for 25 percent less.

The average sale price of units that sold over the past year was 17 percent less than the average original listing price. And 96 percent of the 83 units that sold closed for under their original asking prices.

“We have a lot of satisfied sellers who reduced their prices accordingly, rather than waiting another year,” Shuffield said. “We just try to encourage our sellers to price no more than 5 percent above the value.”