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
(786) 930-4220
contact@condoblackbook.com
Request Info
By sending you agree to CondoBlackBook's Terms of Use

Your Miami Condo Awaits

Recent Posts

Edgewater: Miami’s Best-Kept Secret Neighborhood
Real Estate News Edgewater: Miami’s Best-Kept Secret Neighborhood
Tracing the Biscayne Bay shoreline just north of Miami’s Arts and Entertainment District and the Venetian Causeway (NE 17th Terrace to I-95 and back along E. Coast Avenue) is the pocket-sized neighborhood of Edgewater. This water-facing community could be small in size but is definitely big on potential. Over the past decade, Edgewater has emerged as one of the most loved residential neighborhoods of Miami, with major developers like the Related Group to Melo Group and global brands like Missoni recognizing its value, proximity and community feel by building some of the finest specimens of luxury real estate in their Icon Bay, Aria on the Bay, and Missoni Baia offerings, respectively.  So, what makes Edgewater so appealing? Was it always this bayside paradise, safe and perfect enough to rank second on niche.com’s “Best Places for Young Professionals in Miami” and third on the “Best Neighborhoods to Raise a Family in Miami?” What’s the history behind this shiny new neighborhood loved...
9 Miami Architects You Have to Know
Opinions and Advice 9 Miami Architects You Have to Know
In the age of Starchitects, let’s not forget that Miami has been at the forefront of leading architecture for decades, which explains why tourists and architecture lovers flock here yearly to enjoy, and even live in, the Magic City’s eclectic subtropical architecture. So, who are Miami’s most notable architects, past and present? Want to live in one of Miami’s architectural gems? Read on to learn more about Miami’s ongoing love affair with architecture and some of the architects who have made Miami architecture so damn cool.  Past Miami Architects: Legends Francis Burrall Hoffman and Paul Chalfin  One of Miami’s oldest and most famous architectural landmarks is the breathtaking Villa Vizcaya, built in 1914 as the summer home of millionaire tycoon James Deering. Deering hired painter, curator, and art historian Paul Chaflin to help him envision the estate, and architect Francis Burrall Hoffman carried out the plan. A Mediterranean style palace on Biscayne Bay, complete with baroque...
Miami Beach Luxury Condo Market Report Q4 2019
Real Estate News Miami Beach Luxury Condo Market Report Q4 2019
CondoBlackBook.com's year-end data review of the overall Miami luxury condo market trends revealed an increase in Sales and Sales Prices, but also increases in Days on Market and Inventory from 2018 to 2019. While higher sales and prices show that the market is headed in the right direction, especially in the Mid/North Beach condo market, increase in inventory shows that there's still a long way to go before the market can stabilize and move out of its buyer-friendly zone. This 4Q19 report details how Miami Beach and its sub-neighborhoods fared annually as well as over the last quarter of 2019, along with tracing their alignment with the overall luxury condo market trends in Miami. For the purposes of this report, we've included the sub-neighborhoods of South Beach, Mid-Beach, North-Beach, Sunny Isles Beach, Surfside, Bal Harbour, and Fisher Island as part of our Miami Beach grouping. Also, this luxury condo market report only features properties priced at $1 million and...
Miami’s New and Pre-Construction Condo Update: January 2020
Real Estate News Miami’s New and Pre-Construction Condo Update: January 2020
South of Fifth's Ocean Park became the first preconstruction to launch sales in 2020. North Miami Beach’s Eighty Seven Park started closings. And, Legacy in the Arts & Entertainment District is bringing the first-of-its-kind rooftop atrium to Miami. Read on for details on these and more Miami preconstruction condo updates below: Closings Started Eighty Seven Park – North Beach Residents, including tennis superstar Novak Djokovic, are a step closer to enjoying their units as closings started in January for this oceanfront building. Designed by the Pritzker Prize-winning Renzo Piano, this boutique condo stands 18 stories tall with a total of 70 designer residences. Amenities at this luxury development include a two-acre private park, swimming pool with cabanas and towel service, Enoteca wine lounge, outdoor natural juice bar, salon, full-time botanist, gym and spa. Prices range from $2 million to $18 million, with a choice of one- to five-bedroom residences. Sales...
Tao Restaurant Planned for Edgewater’s Historic Miami Woman's Club
Lifestyle Tao Restaurant Planned for Edgewater’s Historic Miami Woman's Club
Want to know what Miami’s next favorite restaurant will be? Here it is... Sitting on Biscayne Bay, right next to Edgewater’s gorgeous Margaret Pace Park, is a gem of a historic Miami building. You know the one, the luscious Mediterranean Revival villa-like one, that was long abandoned and clearly a prime Miami waterfront location. Well, Miamians and Miami-lovers alike, wait no longer.  A new luxury restaurant and relaxed, verdant lounge is set to open at the site of the historic Miami Women's Club, overlooking the waters of Biscayne Bay. Rendering courtesy of Kobi Karp A partnership between Groot Hospitality and Tao Group, which operates restaurants in New York, Las Vegas, Los Angeles, Chicago, Singapore, and Sydney, will convert the waterfront property into a high-end restaurant seating 558 diners, including 250 indoors and 308 on an open-air terrace at 1737 North Bayshore Drive. The new restaurant, which has yet to be named, will also feature three full bars, a relaxing...
Art Wynwood Returns to Miami this Weekend
Lifestyle Art Wynwood Returns to Miami this Weekend
If you didn’t get enough art during Miami Art Week (and you’re looking for an artsy way to celebrate Valentine’s Day), get ready for the return of Art Wynwood to the Herald Plaza on Biscayne Bay this weekend. Known as the sister fair to the famed Art Miami and CONTEXT Art fairs in December, Art Wynwood is one of the many exciting yearly art events in Miami, solidifying the Magic City’s status as a verifiable year round art destination.  Founded in 2012, Art Wynwood showcases a dynamic array of contemporary art, with a curatorial focus on emerging talent, mid-career artists, and blue chip post-war modern masters. And because it’s held in February, it’s a great opportunity for aspiring and seasoned art collectors to get their hands on a Warhol or Basquiat without all the harried frenzy of Art Basel. Photo courtesy of Art Wynwood Opening with a VIP Vernissage Thursday evening, and then open to the public through Monday, the Downtown Miami art fair features work by over 180 artists...