Sunny Isles Beach’s Ultra Luxury condo market has a big inventory problem: reportNovember 2, 2018
Sunny Isles Beach is saddled with 17 years of inventory of condos priced above $5 million, 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, about 30 percent, or 103 units, are in Sunny Isles Beach. Based on the six recorded sales between August 2017 and 2018, that means that Sunny Isles is facing 206 months — or 17 years — of supply of the ultra high-end condo.
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.
Despite the excess inventory, 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!
The report does not include the preconstruction market, but developers are cutting deals with buyers, and speculative investors 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,….we just try to encourage our sellers to price no more than 5 percent above the value.”