Sunny Isles Beach Condos Supply

Sunny Isles Beach Real Estate

It is not surprising to anyone that South Florida offers most luxurious, as well as some of the most expensive condominium prices in the world. Because of this, it’s also not terribly astonishing that condo developers are happy to snatch up every last plot of land in order to develop more of these luxury dwellings. What has happened because of this is developers kept competing against one another to develop ever more and more expensive condos to attract even bigger buyers, even when they may have no assurance that buyers will kept on coming.

Sunny Isles Beach Neighborhood

It looks like that moment has come, when there are so many condos for sale that there’s simply no easy way to find a buyer for all of them. A study by real estate expert Leon Bell of Sunny Realty from earlier this year gives his own thoughts, largely warning that the Sunny Isles Beach area, located just north of Miami Beach and in the same place where you can find the Trump International Beach Resort, has thousands of condos up for sale.

In addition to Trump’s illustrious properties, other high-profile buildings exist in the area. Probably the most notable is the Porsche Design Tower, which was opened in May with a performance by musician Alicia Keys.

In fact, the sheer number of condos on the market is enough to satisfy the average that would be sold in two entire years. However, buildings are still being erected and with so much supply, it could lead to rapidly tanking prices in an area that isn’t set up for that sort of system.

Price Points for Condos

An average asking price for an oceanfront Sunny Isles Beach condo is right around $1.5 million. However, the time that it takes to sell that unit can be over 200 days, or 2/3 of a year. Leon Bell had analyzed only condos listed for sale in Sunny Isles Beach on the MLS (multiple listing system). This report doesn’t take into consideration almost 50,000 new pre-construction units that are being developed east of Interstate 95 in the South Florida area.

Looking Forward

It’s expected that by the year 2020, the Miami-Dade area will have a huge number of properties to sell and many of them will be listed for a long time. This strikes some as unsatisfying as those areas could have been used as more affordable housing, public parks, community centers, healthcare facilities, etc. However, this all comes down to local government and public planning.

It isn’t only Leon Bell who states things may be going slower for luxury condo sales. Jorge Perez, real estate mogul in Miami, has also stated he believes many developers have no idea of the area’s market and how it’s being over-saturated by homes that may be not easy to sell.

Miami’s legislators have largely ignored the situation and said there is no way to force developers to build more affordable housing. However, Leon Bell’s study shows that things are changing nowadays.

Leon Bell notes that a balanced market will typically have about a six months supply of properties, while Miami is far beyond that number. This can lead to an advantage for buyers, rather than sellers. It can also lead to price deterioration for luxury oceanfront condos.

Massive Growth Seen in Fort Lauderdale Rent

Miami rentals

It comes as no surprise that rent in Miami can be extremely high, but the same is not expected when it comes to the more northern city of Fort Lauderdale. That may be about to change though, according to the May report from RentCafe. Fort Lauderdale is officially up and coming.

In fact, the average price of rent for an apartment in Fort Lauderdale has gone up a massive 6.6 percent year over year. This is the most substantial annual increase to be seen in Florida in this year’s annual rental growth. Because of this tremendous growth rate, those who are interested in renting an apartment in Fort Lauderdale can expect to pay an average of $1,820 a month.

Cause of the Growth

This jump in rent prices is not out of nowhere, however. Fort Lauderdale has gone under a serious makeover as of late. The beaches and downtown of the city have been transformed from another Florida city into an international destination. Both mid-rise and high-rise residential development has taken off, which has led to a whole new influx of residents.

Major Constructions & Renovations

The Related Group started construction on the Icon Las Olas, a 45-story tower, in 2015. This was more than a decade after it was first announced. Related secured financing for the impressive tower from SunTrust Bank and the project broke ground back in February. The condos at Icon Las Olas now have a monthly rent at a cool $2,500 all the way up to $7,000.

In the same year, Fort Partners first announced the plans to build a Four Season Private Residence in Fort Lauderdale which would be built on nearly two acres and include a full city block with a beautiful ocean view.

Many other well-known developers have followed suit, developing and redeveloping properties found on the prime beachfront land of Fort Lauderdale. Invesco and Gencom purchased the Ritz-Carlton Fort Lauderdale hotel and condo for a little over $65 million and have since renovated the building’s restaurant, spa, lobby, and other public areas.

Commercial Growth

It is not just rent that is thriving in Fort Lauderdale, however. Dozens of major retailers are interested in Las Olas Boulevard as a space to provide their services and products. The office market is also rising with higher rental rates and more new construction coming week after week.

Growth in Other Cities

Fort Lauderdale is not the only Florida city experiencing rent hikes over the last year. In Hialeah, rent has climbed 4 percent to $1,263 a month; in Pompano Beach rents are up 4.7 percent at $1,334, and in West Palm Beach averages are at $1,340 or up 5.5 percent.

When considering the country as a whole, the cities that reported the highest rents for November include Boston at $3,262, San Francisco at $3,432, and Manhattan at $4,089. As for the most exceptional rate in average rent across the United States, Odessa rose an impressive 33.2 percent to $1,111, and Midland increased over 25 percent to $1,274.