Sellers Market Hits South Florida Luxury Oceanfront Condo Market

August 29, 2012

Luxury oceanfront condo inventory is so low that once a new property comes on the market it tends to sell within hours. There are waiting lists for many luxury oceanfront condos in South Florida. Canyon Ranch Living recently sold eight oceanfront penthouse units within two hours of coming on the market.

Foreign buyers from South America and Asia have been purchasing much of the luxury oceanfront market. Some international builders have been developing luxury oceanfront towers in the area from South Beach and A1A, known by some as the gateway to Latin America.

Quite a few positive changes have taken place over the past year in the South Florida housing market. Home sales in Miami have increased by 46 percent, according to the Miami Association of Realtors.

Rent is up in South Florida this year as well. According to the Sun Sentinel rent rose 3.3 percent in the second quarter in Broward County, compared to 2011. Rent in Broward County is now $1,097, according to information from research firm Reis. Rent in Palm Beach rose by 2.7 percent, bringing it to about $1,077.

Foreclosures in the Miami Beach-Kendall area fell by 2.39 percent this year, according to CoreLogic. Many foreign buyers have been purchasing foreclosures with cash, which makes the purchase faster and easier.

Luxury oceanfront condo appraisals have gone up due to the rise in condo sale prices and sales. One of the main reasons there is a lack of inventory in the area is the housing market crash that took place in 2008. About 32,000 new condos were built in South Florida from 2005-2008 and then there was the housing crash, which put a stop to new luxury waterfront condo tower developments in the area.

Things have really changed in South Florida over the past couple of years though. Several luxury waterfront condo developments have been proposed or are about to start construction in South Florida. Some of the newly proposed luxury seaside towers available in South Florida are the Mansions at Acqualina, Chateau Beach, Porsche Design Tower, and Regalia. It looks like there will be more to come.