Jay P. Parker is CEO of Douglas Elliman’s Florida brokerage.
In the past two months, we have seen a number of real estate transactions close in the $10-million-plus range in South Beach. Here’s a look at a few of them, and some reasons for South Florida’s hot luxury condo market:
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321 Ocean Drive: $26 million
The Penthouse condo at 321 Ocean Drive in Miami Beach closed at a record $26 million, the biggest Miami-Dade real estate sale in the past year. The deal was represented by Bill Hernandez, Bryan Sereny, Mick Duchon and Eloy Carmenate of Douglas Elliman. Hernandez and Sereny have been responsible for more than $54 million in closed transactions since mid-March, while Duchon and Carmenate have closed more than $70 million in South Beach residential sales in the same period.
Apogee: $13.5 million
Apogee South Beach reported a $13.5 million closing (Unit 1604) to a hedge-funder looking to relocate to South Florida. Nearby, a unit in the Continuum closed at $9.3 million.
The Setai: $11 million
A penthouse at The Setai in Miami Beach is under contract with an asking price of $11 million; the deal is set to close imminently.
Why is Miami’s high-end real estate market so hot right now?
1. Quality Inventory. We have seen quality rise to meet the sophisticated and discerning demands of clients making the move to South Florida. World-renowned architects are crafting masterpiece buildings into our skyline. From balconies as deep as 35 feet to restaurant-grade kitchens, gone are the days of a building’s only amenities being a basic gym and multipurpose room.
2. Favorable Taxes. There is no doubt that several of the changes enacted by the new tax plan have stimulated the high-net-worth buyers in states where state and local taxes remain high. We have seen a sharp increase in interest and transactions from buyers in New York, Connecticut, California and other states.
3. Because Florida. It’s clear that those who can make the move to South Florida from out of state are actively considering it. And those who are constricted by life’s circumstances — be it children in school or parents in close proximity — are looking at mid-construction projects with the plan of moving to the Sunshine State in the near future.
In addition to the tax plan, Florida historically tops the list for retirees and empty-nesters. With a large percentage of the U.S. population in or entering those stages of life, Florida is naturally on their radar.
Our real estate climate continues to offer extraordinary value and, from our perspective, a strong investment proposition. All over the country, I’ve heard people say they are “having the conversation” about moving to South Florida. Many of them already have, and for those who haven’t yet, make no mistake about it: We are excited to welcome you all.