May 27, 2020
Sunny Isles Beach is located in Northeast Miami-Dade County, between the Atlantic Ocean on the East, and the intracoastal on the West. In the picture above you can observe the privileged location, and the breathtaking views these luxury buildings offer, with amenities to match. These buildings are each a destination in themselves. They are beautiful marvels of modern architecture and design. The stuff dreams are made of.
However, the cold hard reality is that real estate is a commodity, subject to the laws of supply and demand and Sunny Isles Beach has an over supply of luxury condos. There are currently 671 condos priced above $1M listed for sale on the MLS in Sunny Isles Beach. The area had 129 months of inventory (as per the MLS) as of last April, and they keep building more. It's considered a buyers' market if inventory increases beyond 6 months, so this is a buyers' market on steroids! Sunny Isles Beach's luxury condo market was in hot water way before Covid-19 began spreading in Wuhan. It will be interesting to see what happens in the following months.
Some of those who purchased units pre-construction are now trying to resell them, competing against the developers who still have unsold units and can afford to offer incentives resellers simply cannot. So what is a reseller to do?
I will use the Porsche Design Tower (home to the "Dezervator") built in 2016 as an example. Out of the 132 residential units in this development, 37 are currently listed for sale in the MLS by resellers. 12 of those units are listed below the price the units were originally purchased for back in 2016. The listed prices are at losses ranging from $25,000 to $3,100,000. These resellers are desperate and want out. It's like Saff on the last episode of Netflix's Tiger King documentary, in which he narrates that after his arm got mauled by a tiger, his doctor explained to him that it would take many surgeries to rebuild his arm or he could just amputate it. Saff bravely chose to have it amputated. This is what these 12 resellers are trying to do. They just would like the pain to go away.
One of the 37 units listed is on its 3rd owner already since 2016, and each time it traded for less. Another reseller listed his property basically for the amount of his mortgage, not caring to loose $1,675,000 right off the bat.
Only one unit at Porsche Design Tower closed in the last 180 days, at $1,126 per square foot and yes; you guessed it, at a loss of $2,146,000. Click here if you want take a look at the unit.
Out of the 37 units listed for sale, these two are the cheapest by square footage. Unit 2905 is listed at $753/sqft but you'd need to install flooring. Unit 3305 saves you the trouble for $42 more per sqft.
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Emilia "Mili" Martinez
305-898-0281
BEACHFRONT REALTY INC.
517 Arthur Godfrey Rd,
Miami Beach, Florida 33140, USA
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