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Sales are defintely up !  Housing figures are showing an increase in sales. What does this mean for oceanfront condos in South Florida?  Luxury buildings that we follow are showing an increased number of sales all along the coast.  A year ago the numbers were quite different.  South Florida oceanfront condos have a world wide appeal and continue to be a desirable location for a second, third or forth home acquisitions Sales figures in this unique market has shown some incredible activity.

How does that translate to the luxury oceanfront condos that we follow?  The most obvious trend is that the least expensive condos in the luxury buildings are selling.  When prices went down there were some new lows presenting buying opportunites that were previously unheard of.  For example,  the Palms in Fort Lauderale, prices for condos in this luxury building average a $1 million and up.  There were about a half a dozen units priced below $1million and almost all of them have sold.  There are buyers in the marketplace identifying great buildings and picking up great inexpensive buys.

Bargain priced units are not the only condos selling.  Desirable units with  large square footage and/or exceptional views are also selling. Turnberry Ocean Colony has a reported 4 units under contract.  This is one of the finest buildings along the coast.  Prices are well over $1million.

The Beach Club, with 1200 units in total, not surprisingly,  has the most activity of any oceanfront building.  29 units have gone to contract !!!

Here is a sampling of what has been reported as pending sales in several buildings:

There are buyers in the market place identifying great buildings and picking up great inexpensive buys.  There are also buyers that are taking advantage of having several desirable units to choose from.  As we move into the winter season, I anticipate that this activity will increase as buyers jump into the market.   We will continue to see inventories decline as well.

Hollywood and Hallandale Beach host several new oceanfront condos that are highly desirable and sought after.  Beach Club, Diplomat Residence, Ocean Palms, and the Villas of Positano

Of those condos, there are 57 units on the market that exceed $ 1million.  There have been 6 closed sales for units over $1million in the past 6 months.  There is a tremendous demand for this area and there are buyers at that price point, although not many in this market.   The average price per square foot of closed sales average under $400 per square foot except at the Villas of Positano where the closed sales are closer to $500 per sq. ft. or higher.

These new condos are about to be joined by the brand new Trump Hollywood, closings will begin next week. Timing for this project could not have been worse.  Prices start at $1.3 million.   The concerns about this Related Group project were identified in the  Sun-Sentinel.  Donald Trump Jr. was on property Friday.  They are stating that they have 140 buyers lined up.

I will be watching this property carefully in the comings weeks and months and certainly hope to see it succeed.

Luxury Oceanfront Condos along the coast in South Florida vary immensly.  Each building has its own character as does each neighborhood and each city, and those variances are reflected in the price.   Worldwide attention is focused on oceanfront condos in South Florida as the price swings have been reported around the world.   To summerize our market we like to provide our readership with statistics and data.

I have selected 7 very different luxury oceanfront condos along the coast to take a look at. These 7 condominiums are all relatively new and represent a cross section of oceanfront condos along the coast.   Continuum in South Beach, Canyon Ranch in Miami Beach, One Bal Harbour in Bal Harbour, Turnberry Ocean Colony in Sunny Isles, Ocean Palms in Hollywood, The Palms in Fort Lauderdale, and The Excelsior in Boca Raton.

The information provided addresses, number of closed sales, $ per square foot, average $ of asking price, number of units currently under contract (pending), and total number of units for sale in each building.

Every real estate buyer today regardless of price range,  comes to South Florida in search of a great deal.  Inventories are at an all time high and prices are at breaking lows.  But where are the real deals? Where are the buying opportunities?

Opportunities are appearing in Bank Owned properties, also known as REO’s.  Currently, there are 78 bank owned properties along the coast of South Florida and a staggering 61 bank owned condos under contract.  Once a property becomes Bank Owned, the process for purchasing is very straight forward.  Although the process varies slightly depending on the bank, a standard Florida Real Estate contract is submitted and the turnaround time for a response is usually 24-48 hours. 

Bank Owned properties are appearing in the finest South Florida Condos, such as  The Bellini in Bal Harbour,  The Setai,  Jade Residences Sunny Isles,  The Beach Club in Hallandale Beach, and in the Las Olas Beach Club in Fort Lauderdale,  I have seen the offering prices on Bank Owned properties to be up to 25% below comparable closed prices.  I have also seen Bank Owned units sell within days, with an auction like frenzy.  The Beach Club condo that I referenced in a previous post sold in 5 days.  The bank priced this property so low, there were multiple offers and I am going to guess that it sold above asking price.

I am currently working with many buyers looking for opportunities such as this and I watch this market very carefully.  I will recommend that anyone that is interested in jumping into this market and taking advantage of these incredible opportunities, must be ready to move forward with their documentation.  The bank will require verification of funds if it is a cash transaction.  If there is financing involved, prequalification is recommended, although the bank may require their own process as well. 

Here are some examples of recent Bank Owned Oceanfront condos in Miami and Fort Lauderdale:

Closed Sales

Las Olas Beach Club:  

2372 Sq.Ft.

Asking Price: $906,000

Closing Price: $900,000

Days on the Market: 11

Jade Residences Sunny Isles

1529 Sq. Ft.

Asking Price $675,000

Closing Price $500,000

Days on the Market 9

Trump Palace Sunny Isles

1329 Sq. Ft.

Asking Price: $649,900

Closing Price: $649,900

Days on the market: 8

Pending Sales

Bellini Bal Harbour

3820 Sq.Ft.

Asking Price: $2,499,900

Prior Offered Prior To Bank Ownership: $3,500,000

Days on the Market: 75

Ocean Palms Hollywood

2800 Sq.Ft.

Asking Price: $659,900

Price Paid in 2007: $1,100,000

Days on the Market: 3

You betcha !

In the last 30 days 59 oceanfront condos went to contract in Miami.  In Fort Lauderdale (Broward County) 55 oceanfront condos sold.  Interestingly, they span the price spectrum. The most expensive unit to go to contract in the last 30 days was a 5 bedroom unit on Fisher Island that was listed for $12,900,000.  The lowest priced unit was in the hundred thousands.

Here are some specific examples of what oceanfront condos went to contract within the last 30 days.

MIAMI

Bellini- 10225 Collins Avenue-Bal Harour- A double unit over 7600 square feet.- 5 bedrooms 6 and one half baths

• Highest Asking price $7,695,000 $1007 per square foot (this is a very unique spectacular space in Bal Harbour)
• Asking Price Now:  $4,999,999   $654 per square foot
• Price Reduction: 35%
• Days on Market 197 

The Continuum South Tower- 100 S. Point Drive- Miami Beach- 1870 square feet 2 bedroom 2 bath

• Highest Asking price $2,500,000 $1336 per square foot
• Asking Price Now:  $1,800,000   $962 per square foot
• Price Reduction: 28%
• Days on Market 97

The Akoya- 6365 Collins Avenue- Miami Beach- 808 square feet 1 bedroom 1 bath

• Highest Asking price $564,900 $699 per square foot
• Asking Price Now:  $379,900   $470 per square foot
• Price Reduction: 32%
• Days on Market 41

• Highest Asking price $545,000 $347 per square foot
• Asking Price Now:  $530,000  $337 per square foot
• Price Reduction: 3% ( Priced Aggressively)
• Days on Market 94

We wanted to provide our readers with a concrete look at specific buildings in today’s the market. We have selected Ocean Palms, Diplomat Residences, Beach Club1,  Beach Club 2, Beach Club 3, and Villas of Positano in Hollywood.  

Each one of the buildings we selected have their own very specific characteristics.  Beach Club is of course the largest with a total of over 1,200 units whereas Villas of Positano only has a total of only 65 units.  

Ocean Palms has the lowest percentage of units on the market.   Diplomat Residences has the highest, 26% of the total building on the market.  

The closed sales data is based on the past 6 months.  The lowest closed price per square foot was at the Beach Club at $252 per square foot and surprisingly followed by the  Diplomat Residences at $253.   Not surprisingly the lowest sale price was at the Beach Club. 

South Florida newer condominiums have been averaging around 20% of the building on the market for the past year.  That number hasn’t increased in fact, as I mentioned in a previous post, inventory numbers appear to be on the decline.  

Several large scale investors such as Jorge Perez and others are stepping in to take advantage of current market conditions and attractive prices.  Real estate will have its ups and downs but unlike paper investments….it will not evaporate !

We receive a constant stream of phone calls from buyers from all over the world that are interested in purchasing oceanfront condos. There are buyers who are seizing the moment so to speak, and stepping in to take advantage of the great opportunities out there right now.

Are there opportunities? You bet there are and I have been in situations, where once we identified a great unit at a great price, other buyers were also putting offers in on the same units.

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There are varying degrees of motivation by sellers in all price ranges. There are some units in building less than 2 years old that the original developer still owns that now are very motivated to sell. There are units that are being sold by investors that are several hundred thousand dollars less than what they paid for it. Each situation is different but the opportunities are there. The units that are available under these circumstances include the most desirable oceanfront floor plans in premier buildings.

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All I can say is that if there is a desire to own an oceanfront condo in South Florida, at this point in time, you can get the best of the best at deeply discounted prices. When the media says…”We are now at the bottom and the market is going to turn around”… the best units in the A rated luxury buildings will be long gone!!!

There is no question, the really good oceanfront condos are selling. International and even national buyers see the great opportunities out there and are taking advantage of them. According to the MLS, in the last 60 days, there have been 46 reported closed sales for oceanfront condos that were listed over $1 million in Dade and Broward counties.

Barbara Corcoran, the real estate contributor for NBC’s Today Show and CNBC, was on today and said that “waiting for the market to go down is silly business ….. international buyer’s are gobbling up knowing that the prospects for Miami are so positive that they know they are going to make money long term.”

Reuters published an article on February 20, 2008, Miami condos are “for sale” for foreign buyers.

It is understandable why International buyers find South Florida Oceanfront Condos to be attractive. Here is an example of an oceanfront condo that was originally listed at $1,155,000 in 2006 and is now listed at $849,000. That is approximately a 30% price decrease.

• Over 2300 square feet under air
• Spacious floor plan
• 3 bedrooms 3 baths
• A rated building
• Full service amenities
• Building directly on the beach
• Built in 2006
• Ocean and Intracoastal views
• Wrap around balconies
• Finished out with marble floors and other upgrades
• Listing Price $849,000 or $368 square foot
• Same model being offered on floors lower and higher range from$930,000-$1,350,000 ($402-$588 sq.ft.)

The Ocean Palms is an elegant 40 story building with a full array of amenities. It is located two buldings north of the Diplomat Oceanfront Residences, 10 minutes from Fort Lauderdale International Airport and accessible to everywhere you might want to go in South Florida.

The building has an interesting layout because the units on the west side of the building, The Coral Floor Plan, jut away from the body of the building. This allows for direct ocean front as well as intracoastal views from this floor plans. The pricing is drastically lower than direct ocean front units because the units are on the west side of the building, even though you are getting an oceanfront view. There is a unit on a mid level floor that has been completely finished out that is being offered for $885,000. This unit is a 3 bedroom 3 and one half bath layout and has over 2300 square feet. That is $383 a square foot for ocean and intracoastal views. A fantastic opportunity and the seller’s are motivated.

Prices in this building start at $699,000 for a 2 bedroom unit on a mid level floor. On the high end, there is a 3 bedroom unit with over 3000 square feet being offered for $2,225,000. As detailed in my previous blog, 25% of the building is on the market.

The building has a movie theater, billiards room, club room, state of the art gym overlooking the ocean, tennis courts, basketball courts and pool and beach service. This is a nice sized very elegant building offering a great deal for the money.

We receive tremendous interest in the newly completed; Diplomat Oceanfront Residences and The Ocean Palms in Hollywood and The Beach Club in Hallandale. Understandably so. The are all new buildings with great amenities situated in great locations minutes from Ft. Lauderdale International Airport. From each of these great buildings, it is just a short drive south to Miami or north to Boca Raton, as well as minutes from the best shopping in South Florida.

Below you will see a chart that show you how many units are on the market in The Diplomat, The Ocean Palms and The Beach Club. Each building has a different amount of total units, so the information below provides a percentage of the total units in the building. You can see that all three of these buildings have approximately 20% of the units for sale.

We have seen price reductions on almost all units since they first actively listed. There is competition amongst sellers, although clearly some are more motivated than others.

In the Diplomat, on the market today prices start at $789,000 for a 2 bedroom unit with 2,267 square feet. ($348 sq.ft.). At the other end of the spectrum is a 4,800 sq.ft. unit with 4 bedrooms 5 and one half baths being offered for $2,950,000.

The two most desirable units are the 01 unit a southeast direct ocean end unit, and the 02 unit a northeast direct ocean end unit. The lowest price 02 unit was originally offered for $1,900,000 and is now on the market for $1,500,000. The floor plan has 3 bedroom 3 and one half baths and has 3,003 square feet under air. That works out to around $500 square foot. The 01 unit was originally listed for $1,688,000 and is now at $1,592,000. $501 a square foot. This unit also has 3 bedrooms 3 and one half baths.

The Ocean Palm’s top of the line unit is listed is a 3 bedroom unit for $2,495,000, ($795 sq. ft.) . The least expensive unit is a 2 bedroom unit for $699,000($403 sq.ft.)

The Beach Club’s most expensive unit is a 3 bedroom unit being offered at $2,495,000 ($795 sq.ft.) The least expensive unit is an 844 square foot studio for $35,000. ($414 sq.ft.)