South Beach vs. Brickell? Pricing Trends in Select Miami Condos

While real estate buyers or investors have the tendency to focus on macro real estate data, they often ignore the micro side of the equation in condominium projects. Are monthly maintenance fees exhorbitant for the size of the building and amenities offered versus the competitive set? Are maintenance fees trending upwards? Have there been any recent major assessments or are any planned in the near future? What is the percentage of distressed sales out of all closed sales?

These are just a few of the many questions that you should be asking your realtor and considering in your investment decision.

When an appraiser determines the market value of a condominium, it is standard practice to obtain two closed sale comparables from within the condo project and one from outside the project. The most weight is given to the most similar recent comparables within the project. Therefore, in addition to learning about the real estate market in general, it is very important to determine the current pricing trends and distressed level of a condo project.

We analyzed the trends within several condominium projects located in the South Beach, Brickell and downtown Miami areas. The following summary is based on the data provided in the local MLS as of the date of this post – to review the more detailed version click here Beach vs Brickell.

There are certain basic trends in a condo project that are just common sense. The higher the percentage of overall sales that are distressed sales (ie: short sales and foreclosures), the more pressure on pricing which results in price depreciation. Additionally, the lower the percentage of overall sales that are distressed, the less pressure on pricing, which may result in either price appreciation or stabilization.

While the above chart is not always consistent with this analogy, this is where a more macro view is important to consider as well. In properties that are less “affordable” in today’s market, or where the total monthly carrying costs including real estate property taxes and maintenance fees are considered high, there is continued macro pressure on pricing. This is particularly evident in the Floridian and Waverly condo projects.

There are also other trends to pay attention to when analyzing this data. In the Mirador and Club at Brickell Bay condo projects, for example, there is a clear move to the upside in pricing. Why?

At a certain price point buyers or investors will recognize the overall value of purchasing into a condo project, and once this is realized, it will have the affect on setting a floor and pricing may actually begin to turn around.

Are you looking for a Miami or Miami Beach investment property at a deep discount? Are you looking for a discounted short sale or bank owned property? Ross Milroy of Miami Angel Properties, LLC may be reached at 305-673-5300 or info@miamiangelproperties.com.

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The Floridian South Beach

LIST PRICE: $292,900 **CLOSED SALE $302,000**

Description | The Floridian on West Avenue has some of most amazing views of Hibiscus and Star Island, downtown Miami, Fisher Island and South Beach. This community has fantastic amenities, pool area and tennis court. Here is an opportunity to purchase a foreclosure, two bedroom unit on the 31st floor, with panoramic views of South Beach and the ocean. For more information or to view this unit please call 305.673.5300 or info@miamiangelproperties.com.

Address | 650 West Ave #3110  -  map it

Property Type | Condominium
Year Built | 1997
Living Area | 1,078 SF or 100 m2
Bedrooms | 2
Bathrooms | 2
Waterfront | Y

Download a full description (PDF):

650-west-ave-u3110 (Right click, and choose “Save link as”)

Floridian Pre-Foreclosure

PRICE : $375,000

Description | This is a turnkey investment, at a great price with a view.  A huge apartment located in the Fabulous Floridian, that offer all the amenities of quint-essential Miami living.  call  305-673-5300  today to check out the opportunity.

Address | 650 West Avenue Unit 2908  –   map it

Property Type | Condominium
Year Built | 1997
Living Area | 1,191 SF or 111 m2
Bedrooms | 2
Bathrooms | 2
Waterfront | Y

Download a full description (PDF):

650_west_ave_2908 (Right click the link and choose “Save link as”)