In the ultra-luxury price range, some 40 properties — about 1 percent of the available high-end inventory — are on the South Florida market between $15 million and $20 million each, and nearly 50 luxury residences — about 1 percent of the available high-end inventory — are on the market in South Florida for at least $20 million each.
Sellers today tend to range from profit-minded investors who bought at deep discounts during the downturn to long-term owners who finally see a chance to exit their luxury properties at an acceptable price following a prolonged boom-and-bust cycle.
Additionally, a number of developers are proposing infill single-family houses in highly desirable neighborhoods and oceanfront condo towers appealing to luxury buyers.
The top three priciest estates on the South Florida luxury market range from $100 million for the former Versace Mansion with 10 bedrooms on Ocean Drive in South Beach to $74 million for a nine-bedroom mansion on South Ocean Boulevard in Palm Beach to $59 million for a 10-bedroom estate on Middle Road in Palm Beach.
On the condo front, the priciest units available range from a proposed six-bedroom penthouse with 15,500 square feet for $55 million in the planned Mansions At Acqualina in Sunny Isles Beach to a pair of unrelated units located in the Continuum On South Beach project that are priced at $39 million and $35 million, respectively.
Going forward, the unanswered question is whether the steadfast optimism of bullish sellers will be persuasive enough to persuade skeptical buyers to pay higher and higher prices for luxury residences in spite of the amount of unsold inventory on the market in South Florida.
Peter Zalewski is a principal with the Miami real estate consultancy Condo Vultures. Zalewski, a licensed Florida real estate professional since 1995 and founder of CVR Realty and Condo Vultures Realty LLC, advises developers, lenders and institutional investors.