The downshift drags on in Miami’s condo market

With a slew of condo projects she lved or canceled, developers wait for the market to correct itself — but when that’ll happen is anyone’s guess

Quiet has become the new status quo in the condo market.

Miami-Dade County is facing a supply of 58 months, or nearly five years, of condos priced at $5 million and up. That figure is based on the market average of about six units selling per month with 350 units on the market, according to MLS data compiled by EWM Realty International.

Of the units priced at $5 million and up that sold over the past year, 96 percent closed for less than their original asking prices. However, sellers are typically reducing their pricing by only 5 percent, the report found.

The drop in preconstruction inventory as a growing number of projects have been canceled or put on hold since the cycle began in 2011 — including the recent cancellations of Naranza at Edgewater; Spark, also in Edgewater; Fasano Residences in Miami Beach; and the Diplomat project in Hallandale Beach — is a sign that the market is correcting itself.

Announcements of new projects have been few and far between. The handful of recently launched developments are priced more affordably and located in Greater Downtown Miami, a market where lower listing prices will fare better as the glut of luxury condo supply totals more than five years, according to data from Peter Zalewski’s Condo Vultures Realty, a brokerage that specializes in buying and selling bulk condo deals. The excess inventory Condo Vultures tracked doesn’t even include the preconstruction market.

Heading farther north to Broward and Palm Beach counties, the number of projects in the pipeline is lower, but some of the same issues are present in both areas.

The Conrad and W Fort Lauderdale, for example, still have a number of unsold units. According to a 2018 report by International Sales Group, the W — which the Related Companies purchased and renovated — is only 55 percent sold. And the Conrad, which the Heafey Group purchased, is under 50 percent sold.

Below is the pipeline of South Florida condo projects proposed, planned, under construction or completed since the beginning of this cycle. The data was compiled by Cranespotters, an entity connected to Condo Vultures Realty, which sourced data from public records, mainstream media news reports and private research. 

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Broward

NAME10 Madison Square WestPRICE RANGEFrom $5,050,000 to $35,000,000
ADDRESS1107 BroadwaySIZE RANGEFrom 2,021 Sq Ft to 6,515 Sq Ft
TYPEConversionAVG PPSF$4,144
TOTAL UNITS125TAX ABATEMENTNo
DEVELOPERThe Witkoff GroupAVG COMMON CHARGE$1.25/sf
BROKERDouglas EllimanFINISHED BY2014

Miami-Dade

NAME16 West 21st StreetPRICE RANGE$8,787,500
ADDRESS16 West 21st StreetSIZE RANGE3,695 Sq Ft
TYPEConversionAVG PPSF$2,378
TOTAL UNITS9TAX ABATEMENTNo
DEVELOPERF&T GroupAVG COMMON CHARGE$1.29/sf
BROKERDouglas EllimanFINISHED BYComplete

Palm Beach

NAME160 East 22nd Street PRICE RANGEFrom $1,009,990 to $3,037,000
ADDRESS160 East 22nd Street SIZE RANGEFrom 521 Sq Ft to 1,206 Sq Ft
TYPENew BuildingAVG PPSF$2,147
TOTAL UNITS82TAX ABATEMENTYes
DEVELOPERToll BrothersAVG COMMON CHARGES0.94/sf
BROKERToll Brothers City LivingFINISHED BYFall/Winter 2014