Why Are Luxury Condo Sales Surging in Downtown Miami as Sales Weaken in Miami Beach?

Why Are Luxury Condo Sales Surging in Downtown Miami as Sales Weaken in Miami Beach?

Aug 13, 2019 August 13, 2019

Move over Miami Beach, there’s a new rising star on the block. For long, Miami Beach has been the hot favorite for property seekers in Miami. Whether it’s been about purchasing a permanent residence or getting a second home, South Beach properties have always sold out like hot cakes.

On the other hand, Greater Downtown (Edgewater and Brickell included) has mostly been a second-best option to South Beach and Miami Beach, possibly out of necessity, with proximity to work being the biggest motivator for local buyers. But, as we’ve been tracing luxury condo trends over the last couple of years via our quarterly market reports, we noticed a reversal. The Greater Downtown area is now emerging as the top favorite among luxury condo seekers. Here are some reasons we are seeing this new trend:

Numbers Speak: Miami Beach vs. Greater Downtown Miami

Running the numbers - charts and calculations


Over the past couple of quarters, sales trends in Greater Downtown Miami have been marching ahead, even as those in Miami Beach slowed down. This became even more evident as Q2’s results came in.

By the end of this second quarter, Miami Beach reported a 21% decline in its year-over-year sales versus a 15% improvement in the GDM area. We also noticed Miami Beach’s Q2 sales being at their lowest compared to year-over-year stats from 2018 to 2015. On the other hand, GDM’s numbers almost touched the highpoint of Q2 2015, while surpassing year-over-year comparisons to 2018, 2017 and 2016. (see fig. 4.1 and 11.1 below)





How prices influence luxury condo sales in Miami Beach vs. Greater Downtown 

Setai, Miami Beach FL

Setai, Miami Beach FL


The average sales price for properties priced $1 million and above in Miami Beach is $897/sq. ft., whereas it’s just $541/sq. ft. in Greater Downtown. Taking a deeper look with a neighborhood vs. neighborhood analysis, it becomes clearer why buyer preferences are changing: 

Neighborhood

South Beach

Mid-Beach

Downtown

Brickell

Edgewater

Avg. price per sq. ft. by quarter-end Q2 2019

$1,054

$751

$541

$554

$495

One of the most luxurious condo buildings in the neighborhood

Setai

Faena House

Epic

Echo Brickell

Gran Paraiso

Avg. price per sq. ft.

$2,661

$3,087

$537

$1,250

$951

*All prices have been sourced from our latest quarterly report on luxury condos sales in Miami

What do these prices fetch for buyers in Greater Downtown Miami? 

Affordable luxury

Looking at the table above, you will find that the average price per sq. ft. for one of the top luxury condo buildings in Brickell is $1,250 per sq. ft., while that in Mid-Beach is $3,087. Both properties offer exceptional luxuries such as waterfront living, dramatic water views, exquisite interiors by internationally acclaimed designers, multiple swimming pools with poolside service, state-of-the-art gym, a luxury spa, concierge services and much more. Also, while Echo Brickell is located in the heart of the financial district with loads of public transportation options, Faena House is the centerpiece of the upcoming Faena District, which in itself will house a bazaar, arts center, marina and hotel.

Echo Brickell - Brickell, Miami FL

Echo Brickell - Brickell, Miami FL


Now, practically speaking, since buyers are getting the same kind of luxuries and amenities at half the price, it is but natural they will come to choose a property that offers maximum value for money.

This comparison is just one in a sea of many. The Greater Downtown Miami area is filled with such affordable luxury condos, while newer properties in the beaches are coming up with even more expensive price tags. For instance, South Beach’s Monad Terrace is available at an average pre-construction price of $1,969/sq. ft., as opposed to Edgewater’s pre-construction Missoni Baia that is priced at $784/sq. ft. This is naturally shifting buyer attention to the more practical (and affordable) choices available in Downtown Miami and its surrounding neighborhoods.

Faena House, Miami Beach FL

Faena House, Miami Beach FL


A share in the new, modern waterfront of Miami

Let’s face it, the biggest draw for a residence in Miami is getting a piece of its gorgeous waterfront. Over the past few years, lots of luxury waterfront options have sprouted up in GDM, especially Edgewater.

Point in case, Edgewater’s Paramount Bay is available at an average price of $718/sq. ft., One Paraiso comes with a tag of $933/ sq. ft., and Brickell’s recent addition, Brickell Flatiron (though not waterfront) is available at an average price of $869/sq. ft. These seem much more affordable compared to Mid-Beach’s pre-constructions like 6080 Collins Avenue priced at $1,214/sq. ft., or 57 Ocean with an average price of $2,828.

One Paraiso - Edgewater, Miami FL

One Paraiso - Edgewater, Miami FL

57 Ocean, Miami Beach FL

57 Ocean, Miami Beach FL


In addition to more affordable, luxury waterfront living, the mainland has grown to offer a wider selection of arts, culture, shopping and entertainment options. This is the new and improved Miami. The art and shopping scenes in Wynwood and Design District are undisputable. The Perez Art Museum Miami plus Philip and Patricia Frost Museum of Science are recent additions to Downtown cultural scene. Also, the Brickell City Center and Miami World Center in Downtown are poised to take over the city in terms of shopping and entertainment.

With all these latest developments being located in, or easily accessible from the Greater Downtown Miami area, combined with lower prices compared to the beaches, it’s easy to see why buyers are shifting their attention.

What’s taking the luster off Miami Beach?

Liveliness vs. Long-term Livability

By now, it has become pretty evident that Miami is seeing a big wave of people moving in from high tax states post the announcement of the SALT tax laws. Low tax states such as ours have become hot property for out-of-towners.

Further, these folks are looking to establish a life here, and they don’t need the beach on a daily basis to do it. By no means does this mean that a life can’t be built on the beach (we still think South of Fifth is a gem), but the beach is mostly looked at as a frivolous, tourist destination and less as a fit-for-the-family kind of place. So, the choice here becomes obvious for someone who would like to settle down permanently.

Less than ideal springtime reputation

Of late, South Beach has gotten a bad rap for its rowdy tourists (read spring breakers). With the neighborhood turning into spring break central every March, the beach becomes a less than an ideal place to party, let alone live and raise a family. The number of offenses and arrests sky rocket during spring break season, which is a major turn off for those seeking a tranquil lifestyle.

While the City of Miami Beach is looking to correct the situation by shelling out $30,000 on marketing campaigns warning spring breakers, and another $70,000 for police overtime, it could take a while to clean up South Beach’s reputation. And, even though Mid-Beach and South of Fifth are not as affected by these shenanigans, the greater impact of reports splashed across the internet and news networks are taking the luster off living in Miami Beach, even if they are blown out of proportion or just inaccurate.

Champagne by the poolside

Photo courtesy of rawpixel.com


All of these factors combined have been motivating buyers to opt for a residence in the Greater Downtown Miami area (Downtown Miami, Brickell and Edgewater), taking the limelight away from Miami Beach. What will be interesting to note here is whether this is a permanent change, or something that will reverse or balance out in a couple of cycles. But, in the meanwhile, anyone looking for affordable luxury in the new Miami should definitely browse for a Greater Downtown Miami condo residence
here.

Contact Sep Niakan
Founder, Condoblackbook.com & Owner/Broker, HB Roswell Realty
(305) 697-7667
contact@condoblackbook.com
Request Info
By sending you agree to CondoBlackBook's Terms of Use

Your Miami Condo Awaits

Recent Posts

October 2020: ‘Scare Up’ Some Fall Fun with These Miami Events
Lifestyle October 2020: ‘Scare Up’ Some Fall Fun with These Miami Events
It’s that time of year again, when orange skies fill the air and pumpkin spice lattes fill your coffee mug. Fall in Miami is truly beautiful - the weather is cooler, the sunsets are stunning and the pace of our lives starts to wind down a bit. October in Miami is great time to experience the outdoors and get in some nature walks to recharge the senses without breaking much of a sweat - not to mention have some fun! So, for things to do in Miami this month, we’ve got a mixed goodie bag of online and on-ground events to help you have some Halloween fun. (We highly recommend double checking the availability of the on-ground events before heading out.) There’s also a virtual run, online jazz series, boat show, and carnival to keep you in the highest of fall spirits. Look below for the complete list of virtual and on-ground events to spice up your October in the Magic City: Halloween Specials Drive-Through Pumpkin Patch: October 3-31 Miami-Dade County Fair & Expo Center, University...
Our Top 10 Sailing & Boating Clubs - From Coconut Grove to Miami Beach
Lifestyle Our Top 10 Sailing & Boating Clubs - From Coconut Grove to Miami Beach
Nothing embodies the Miami lifestyle better than a day of sailing on the beautiful blue waters of Biscayne Bay, the Atlantic Ocean, or the Intracoastal Waterway. Boating is a way of life in South Florida. For those who want to board a boat and join the fun, here is a list of our 10 favorite sailing and boating clubs in Miami.  1) Biscayne Bay Yacht Club 2540 S Bayshore Dr, Coconut Grove  The Biscayne Bay Yacht Club (BBYC) is Miami’s oldest boat club, dating back to 1887, when it leased the Florida Cape Lighthouse as its headquarters.  The club purchased its current clubhouse in 1932 and has been involved in practically every important sailing race in South Florida to date.  Today, the club continues to be among the most popular sailing clubs in Miami, with regattas throughout the year, sailing lessons, and all kinds of sailing events. The BBYC has also become popular among windsurfers and is now known as the international hub for this popular sport, turning out Olympic-caliber...
These Two New Miami Towers Could Become Edgewater’s Latest Developments
Real Estate News These Two New Miami Towers Could Become Edgewater’s Latest Developments
Edgewater is expanding. Again! With two new residential towers planned - one condo and one multifamily - the Miami waterfront neighborhood is once again proving it’s continuing to be Miami’s most desirable neighborhood. Both projects are currently awaiting a vote from the City of Miami’s Urban Development Review Board. Developers have been attracted to Edgewater for residential projects, given its family-friendly vibe. The Bayfront neighborhood further benefits from close proximity to the shops and restaurants of Midtown, high-end shopping at the Design District, the eclectic art scene of Wynwood, and general vivacity of Downtown. It is also minutes from a Metromover station that takes people through to Downtown and Brickell. New Edgewater Condo Grupo T&C: 36-story, LEED-certified Condo Tower designed by Kobi Karp Sitting just behind Quantum on the Bay and 1800 Club, Lima-based developer Grupo T&C is proposing a 322-unit, 36-story tower at 1825 and 1837 NE Fourth Avenue. The...
Must-Have Tech to Make Your Condo a Smart Home
Opinions and Advice Must-Have Tech to Make Your Condo a Smart Home
Smart Home technology has been improving year after year and has probably been making your life easier without you even knowing. In the last few years, the home-tech market has exploded leading to a new generation of smart home devices that let you automate your condo.  Whether it’s an energy-saving, AI-powered thermostat keeping your condo at the right temperature, or maybe a smart security system that keeps burglars at bay. There is no question the smart home market is growing and here to stay. What: Philips Hue - The Smart Light Bulb Why: The Philips Hue Smart Bulbs give you access to the color and tone of the lights in your condo all from an app on your phone. These smart light bulbs communicate through Bluetooth and wifi, letting you control the lighting around your condo with just a smartphone! Depending on which model you buy, you’ll be able to not only change the strength and hue of the light but even the color. Dim purple lighting in your living room? Easy. All without...
Need to Get Away from It All? Escape to a Miami Sandbar
Lifestyle Need to Get Away from It All? Escape to a Miami Sandbar
Destination: Sandbar Miami Miami’s coastline provides plenty of adventure, fun and stress relief, the perfect life hack for destressing! Whether you’re into boating, kayaking, swimming, or scuba diving, our coast provides plentiful areas where natural beauty and cooling relief from the hot sunny weather await you. Among the many delights that the Miami coastline has to offer are the sandbars that emerge along the beach at low tide. While most sandbars come and go with the tides and shifting sands, there are several that are established as permanent, and three in particular within Miami. These sandbars are sunny oases in the middle of the sea, accessible only by boat or kayak, and have become popular fun zones where families and singles can swim, relax, and party.  If you are looking to enjoy a special adventure in the water, set out on the waters and check out these gorgeous Miami Sandbars the next time you go out boating or kayaking. Haulover Sandbar 10800 Collins Ave, Sunny...
Buying a Miami Condo for Daily Rental or Short-Term Vacation Rental? Read This!
Opinions and Advice Buying a Miami Condo for Daily Rental or Short-Term Vacation Rental? Read This!
With more and more travelers choosing to book with daily vacation rental websites such as Airbnb or VRBO over traditional hotels, the short-term vacation rental business is on the rise globally. Its local reach, luxury amenities and home-away-from-home comfort is what makes this vacation rental model a huge success. Additionally, when you couple the breeziness of an Airbnb-style vacation rental with a year-round city like Miami, travelers get a phenomenal vacation. After all, it's no secret that Miami has one of the best beach, nightlife, food, culture and shopping scenes in the world, and that's not going to change. This, quite obviously, makes buying a condo for daily renting in the city or Miami Beach a lucrative and smart investment opportunity. However, before you go property-hunting for your full-time or part-time Airbnb investment, here's what you should know about daily rental condos in Miami: Quick Links   Why Invest in a Daily Rental Condo in Miami? What's the Difference...