Befitting the cooler fall temperature, the Miami real estate market is in the midst of a cool down. The average luxury price has decreased about 8-10 percent year over year in the past five years, according to a 2016 midyear report on Miami condominiums by ONE Sotheby’s. A construction boom has created a glut of new construction, and demand from foreign buyers has softened as a result of a strong dollar.
But experts don’t see this as a harbinger of an economic crash, rather as evidence of a correction of a bubble and the market stabilizing.
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"I’m pretty happy with the state of the market," said Daniel de la Vega, president of ONE Sotheby’s International. Perhaps the most exciting thing about this course correction is that it has turned South Florida from a seller’s market into a buyer’s market, with purchasers getting choice pickings from a large selection of inventory and negotiating power. According to The Open House, a data-driven real estate website, most of the homes sold in July went under the asking price.
Even in a buyer’s market, a waterfront location still reigns and location is the most important thing. "Location, location, location…you always want to buy as strategically as you can" Mr. de La Vega said. Despite the downturn, waterfront neighborhoods did very well in the first half of 2016, compared to 2015, according to the Sotheby’s report.
And there’s still a lot of value at the top of the market. There has been a 51% increase in the price per square foot between $1- and $5-million dollar condos and $5- and $10-million condos, and a 27% increase in prices on condos between $5-$10 condos and those over $10 million, indicating that the value in luxury developments increases because of enhanced quality due to factors like construction, finishes, views and location.
More:A ‘Healthy’ Cooling for Miami Beach’s Luxury Condo Market
In addition, the most exciting new developments in the Miami area all have something special to offer, whether it’s interiors by Missoni at Missoni Baia, or the lagoon feature outside Jean Nouvel’s Monad Terrace, or the intimate scale of The Fairchild in Coconut Grove.
Here are some new developments on the market this fall:
Missoni Baia, 700 NE 26th Terrace
Fashionistas take note: Missoni Baia is the world’s first branded residence from the Italian fashion house Missoni. The 57-story tower will be in the Edgewater neighborhood, between downtown Miami and the booming Wynwood Art District, along 200 feet of Biscayne Bay frontage. The 649-foot-tall tower will feature 146 expansive residences, each with a waterfront view. OKO Group, the Miami-based development company, has tapped Hani Rashid from Asymptote architecture for the project.
Rashid was recently commissioned to design the Hermitage Modern Contemporary Museum in Moscow. For this tower, Mr. Rashid said in a statement that he was inspired by the "beautiful and pristine sculptural works by the great American minimalist sculptors such as Sol Lewitt and Donald Judd, coupled with the mathematical poetry of the great Venezuelan artist Jesus Soto."
And of course, the interior design of the building features Missoni’s trademark bright palette, and furniture pieces from Missoni Home will be seen in the building’s public spaces. Residents will find extensive amenities, such as a sunbathing deck, five pools (including an Olympic sized lap pool and plunge pools), tennis courts, a fitness center and spa. Sales are expected to begin fall 2016.
Number of units: 146 units, with only three per floor Price range: Approximately $900/square foot, begins at approximately $2 million. Developer/architect: OKO Group/Missoni/Asymptote Architecture Apartment sizes: Two- to four-bedrooms, ranging from 2,500 square feet to 3,700 square feet Amenities: Deck with cabanas, five pools including an Olympic-size lap pool, hot and cold plunge pools, children’s pool and infinity pool, elevated tennis courts, fitness center, spa, private elevators with direct access to apartments Website:Missoni Baia
GALLERY:Tour the Missoni Baia
Monad Terrace, 1300 MONAD TERRACE
Residents of the Monad Terrace will have the privilege of living in Pritzker prize architect Jean Nouvel’s first residential building in South Florida. The building looks over the bay in South Beach, and provides a study in water, light and flora, with a saw tooth reflective façade that captures the water and sunshine of the location. Mr. Nouvel calls it a "reflection machine." The unique saw tooth window shape has the added benefit of providing unadulterated views, but also privacy within the units.
The building also integrates with its surroundings through a reflecting pool, lush landscaping and climbing gardens, and a unique lagoon feature with an infinity edge that makes it appear as though it extends into the bay. The light and green continues within the lobby, which has a double-height canopy installation of reflective panels and screens with hanging gardens inside of them that incorporate live tropical plants for shade.
Apartment amenities, such as custom mirrored glass and bronze kitchen cabinets, bring these design features inside the units as well. Sales are expected to open later in the fall.
Number of units: 59 Price range: Will be announced when sales open mid-fall Developer/architect: JDS Development Group/Jean Nouvel Apartment sizes: Two- to five-bedroom residences, penthouse residences include private pools Amenities: A lagoon, water features, juice bar, fitness and spa with yoga, dock access, private or semi private elevators, custom Jean Nouvel design in the bathrooms, curated climbing gardens on apartment terraces, cantilevered marble islands in the kitchens Website:Monad Terrace
The Fairchild Coconut Grove
For those looking for a more private Miami experience, The Fairchild Coconut Grove, on an expansive stretch of waterfront in Coconut Grove, offers a way to get away from the hustle and bustle of the city. The boutique residences are designed by Miami architect Max Strang, alongside New York-based interior designer Rafael de Cárdenas, who was named an "AD100" designer by Architectural Digest.
The relaxed setting marries the inside and outside, with private boat slips, porters for indoor and outdoor entertaining, sunset roof decks with outdoor cinema and gardens, and private outdoor showers in some units. The landscaping is filled with beautiful examples of tropical Florida: ferns, live oaks, banyan trees, and royal poinciana.
The already relaxing property gets an extra Zen boost from a spa with hammam, steam room, treatment rooms, and a sauna. Sales has just launched.
Number of units: 26 Price range: $1.4 million-$4.6 million Developer/architect: Rovr Development/Strang Architecture Apartment sizes: Two- to four-bedroom homes, ranging from 714 square feet to 4,114 square feet. Amenities: Resident bicycles by the luxury commuter bicycle company Martone Cycling, sunset roof deck with serenity garden, private boat slips, indoor and outdoor porters, bayside lounge, spa with hammam, natural stone flooring, dedicated elevator lobbies, an outdoor movie theater, private outdoor living areas, outdoor showers. Website:The Fairchild Coconut Grove
3550 South Ocean, Palm Beach
Buyers looking in Palm Beach who want something new on the water should be excited: 3550 South Ocean is the first new waterfront condo development in the area in more than 10 years. The floor-to-ceiling hurricane-proof glass windows and balconies will make beautiful use of the location, overlooking both the Atlantic Ocean and the Intracoastal waterway on the other side.
Residents will also be able to take in views from an oceanfront swimming pool or enjoy private beach access. Post sun and sand, the building offers access to the Eau Palm Beach Resort’s Spa, a 42,000-square-foot, seven-acre wellness paradise.
Sales are expected to start later this fall.
Number of units: 30 Price range: From $2.3 million Developer/architect: DDG/Garcia Stromberg for DDG/Kobi Karp Architecture Apartment sizes: Two- to three-plus-bedroom homes, from 2,400-3,000 plus square feet Amenities: Access to Eau Spa, direct beach access, oceanfront pool, floor to ceiling windows and private balconies in every residence, fitness studio with natural lighting, tropical landscaping, oak flooring Website:3550 South Ocean