Miami Area’s New Luxury Developments Open Amid Hope for a Turnaround
High-end amenities abound and indoor-outdoor living is a must
While many developers in the Miami real estate market continue to have their fingers on the pause button as they wait for current inventory to be sold and absorbed, there are some signs that the market may be improving.
“We’ve had an exceptional summer, with a lot of activity, a lot of sales,” said Alicia Cervera, managing partner of Cervera Real Estate.
“People are feeling much better about where the market is headed,” she said. “Spring was tough; this time last year was tough.”
Sales of existing luxury condominiums in Miami surged in July, according to a recent report by the Miami Association of Realtors and the Multiple Listing Service. Properties sold that were priced at $1 million and up rose from 45 to 68 year-over-year, a 51.1% increase despite healthy competition from the new construction market, according to the report.
Existing luxury single-family home sales, meanwhile, increased 9.6% year-over-year in July, from 73 to 80. Sales for $1-million-and-up homes have now increased in Miami for five consecutive months, while luxury condo sales have risen for two straight months, according to the report.
But this comes on the heels of a report from Redfin in August that Miami suffered a 23% fall in the average price for a luxury home in the second quarter, the deepest decline among cities recording at least 40 luxury sales within the three-month period.
The poor performance in the city’s luxury markets is partly due to an abundance of high-end condo developments, Jose Medina, a Miami-based agent with Redfin, said in the report. The number of homes for sale priced at or above $5 million in Miami increased 166.7% compared to last year, according to Redfin.
Harvey Daniels, vice president of development at ONE Sotheby’s International Realty, described the current Miami market as “challenging.”
“We’ve been really affected by the foreign markets,” said Mr. Daniels, who is also director of sales for One Thousand Museum, the 62-story ultra-modern condo tower going up on Biscayne Boulevard in downtown Miami. “Currencies are being devalued by countries like Brazil, and the Mexico City market has been down.”
“Our focus has turned to the U.S. buyers, which has not been Miami’s strong suit,” he said.
“Change is upsetting to the market–people don’t know what to do, how to react,” Ms. Cervera said. “Uncertainty leads to inactivity. People like stability.”
As for the foreign markets that are so vital to the Miami luxury market, Argentina is more settled now, she said. “There is still upheaval in Brazil, but it’s more settled than it was this time last year.”
Ms. Cervera doesn’t see a problem with the city’s inventory. “When you’re building a city as quickly as we’re building Miami, it’s bound to happen: the inventory will start stepping on each other,” she said.
And some of the new luxury condo inventory is doing quite well, including the Aston Martin Residences, which her firm is selling. In the first six weeks of sales, more than 20% of the nearly 400 condos have been sold, she said.
Mr. Daniels remains hopeful that the overall market will do better next year. “Typically, Miami has always turned around very quickly when there are down markets,” he said.
Below, new developments opening in the Miami area this fall:
1. Amrit Ocean Resort & Residences, 3100 North Ocean Drive, Singer Island, Riviera Beach
Spanning over seven acres on a pristine stretch of the Atlantic shoreline on Palm Beach County’s picturesque Singer Island, Amrit Ocean Resort & Residences is being developed in partnership with world-renowned ESPA Spas and the Himalayan Institute. Amrit will be one of the most wellness-immersive developments currently under construction in the United States. Sales are set to begin in the fall, with completed construction and delivery scheduled for spring/summer 2019.
The property will be comprised of two towers, each offering indoor and outdoor living, with modern cabinetry, state-of-the-art appliances, designer fixtures and large sliding glass doors that open to covered terraces with spectacular water views. Tower P (Peace) will be a resort residential tower, which can offer features such as posture-supportive heat reflexology floors, personalized digital entertainment packages, mood-enhancing aromatherapy, vitamin C-infused showers, exterior sound intrusion block, and dawn simulation to gently increase the amount of light in the bedroom at a customizable wake-up time. Tower H (Happiness) will offer a hotel-residential mix featuring a large array of amenities.
Number of units: 351 units, resort-residential mix
Price range: $700,000 to over $4 million
Developer/Architect: Creative Choice Group/S&E Architects
Interior designer: Bilkey Llinas Design
Apartment sizes: 1,460 to 2,525 square feet with penthouses up to 3,350 square feet; in addition, all units have terraces, and the penthouses have rooftop terraces with summer kitchens and hot tubs
Amenities: Access to a 100,000-square-foot indoor and outdoor spa and wellness amenities, oceanfront restaurant with regional and international specialties, meditation garden, indoor and outdoor yoga studios, whirlpool spa, a private beach club with cabanas, watersports and complimentary lounge chairs, umbrellas and towels. Both towers will feature recreational pools for residents.
Website: amritocean.com
2. The Waters Bay Harbor, 9781 East Bay Harbor Drive, Bay Harbor
Located on the exclusive Bay Harbor Island, The Waters will have nine fully finished residences, including two half-floor Villas and five full-floor Estates that are vertically integrated into a tower. There hasn't been a new building like this on the island in more than two decades, according to Compass, which is handling sales.
Congress Group is developing the property with high-quality finishes and materials, including Italian kitchens, hidden hinge Italian lacquer doors, natural stone (marble and granite flooring and countertops) and integrated appliances hidden within the cabinetry. Sales are set to launch this month, with construction expected to begin in spring or summer of 2018 and last for 18 months.
Number of units: 9
Price range: $995,000 to $4,795,000
Developer/architect: Congress Group/Bermello Ajamil & Partners
Apartment sizes: Two- to four-bedroom-plus-den units ranging in size from 1,530 to 4,345 square feet
Amenities: Gym, rooftop pool and garden; the Penthouse Estate will have its own rooftop garden and private pool
Website: thewatersbayharbor.com
3. Akoya Boca West Country Club, 20155 Boca West Drive, Boca Raton
Akoya Boca West is a contemporary sanctuary being developed by the Siemens Group, the well-known developer of The Polo Club Boca Raton. The project is set within the gates of Boca West, a premier private residential country club that offers luxurious resort-style living and more than 400,000 square feet of club facilities. The development will offer picturesque golf course views.
Number of units: 139
Price range: $900,000 to $3 million
Developer: The Siemens Group
Apartment sizes: Two- to four-bedroom plus den floor plans ranging from 1,891 to more than 4,500 square feet; combined custom residences available upon request.
Amenities: 24-hour security, 16 privacy-controlled elevators that open directly into each residence, resort-style pool and deck, 24-hour fitness center, spa, two card rooms and a social room. Just steps away, the surrounding Boca West property has four signature 18-hole championship golf courses, designed by Pete Dye, Arnold Palmer, and Jim Fazio, as well as, a USTA award-winning tennis center with 31 courts.
Website: akoyabocawest.com