|
Greetings!
Here's a quick look at what's been going on in and around Miami and Miami Beach this week.
- ICON BRICKELL - Two of the three towers at ICON Brickell have been turned over to a group of lenders lead by HSBC Holdings PLC, according to the Miami Herald. Towers 1 and 2, the two 57-story towers were transferred by developer The Related Group, and will now be sold by Fortune International. The third tower, the 50-story condo that is also home to the Viceroy Hotel will be retained by The Related Group and sold by Related Cervera Realty Services. What may surprise you, however, is that in recent months the Icon Brickell project has seen an explosion in sales, thanks to lowered pricing. The Wall Street Journal reports that about 25% of the 1273 units across all three towers have been sold (to date). These units were priced in the $600s per square foot in preconstruction, but are now averaging about $440/sf. Icon Brickell is worth a look, if you haven't done so already. It's one of the most-upscale condo complexes in the city, and I think its pricing has finally reached the point where it will be attractive to buyers.
- OTHER NEW CONDOS - The trend in this market appears to be that with revised pricing, many of the new upscale condos are seeing new life again. I am going to start publishing a section on my website, starting in June, that focuses on the new buildings, and where to find your opportunities. We are finding that a lot of life is breathing into this market again, albeit at drastically-reduced pricing. It surprises many new buyers to see how upscale some of our new buildings are, and I think we will see a very healthy future in many of these new buildings.
- SOUTH BEACH MARKET REPORT (Free PDF Download) - I did a recent study of a sample of South Beach condos to explore market values over time. The sample condos that I studied are Continuum South, Murano Grande, ICON South Beach, The Cosmopolitan and The Waverly. The study reveals the difference in average selling prices at each building at it's market high and market low, starting in about late 2005. Buildings such as Continuum South, Murano Grande and The Cosmopolitan seem to have fared the best, now selling at about 30% lower than each building's respective market peak. Buildings such as ICON South Beach and The Waverly are seeing prices at about 40% and 46% lower than their peaks, respectively. It's important to properly and responsibly interpret these results, however. I believe that they properly reflect a correction that has been taking place over the last 24-36 months. I am willing to make a prediction, and let's see if I am right. I predict that condos that bottomed-out at about 30% from their market highs have already stabilized and will see increased sales and slightly higher pricing in 2010. These include Continuum South, Murano Grande and The Cosmopolitan. I also predict that condos that had more than a 30% price difference from market high to low, such as ICON South Beach and The Waverly will not see price stabilization until 2011. 2010 should be a year of price fluctuations for such buildings. This is partially-due to a relatively-high number of short sale offerings in either building. Short sales can contribute misleading closed sales data, as these sales tend to be "artificially-priced". Once a building's short sale inventory has been exhausted we expect to an immediate return to normal market values.
- NEW PRICING AT MURANO GRANDE - UNIT 1703: One of our large, 3 bedroom condos at Murano Grande has been reduced. This 3058sf flow-though apartment has numerous upgrades including a central-control CRESTRON system for lights, shades, music and more. This is one of the nicest 03-type units you will see at Murano Grande! Price has been reduced to $2,149,000. See photos and a virtual tour on our website by clicking here or http://www.zilbert.com/miami_south_beach_condo_details.asp?R=M1332767.
|
|
Mark Zilbert
