May 8, 2021
An oversupply of posh in Miami

Miami-Dade Roundup

An oversupply of posh in Miami

Buyers now rule the roost in Miami’s luxury-home market. Some $1-million-plus residences now are selling for 20% to 35% less than their original asking price, says Ron Shuffield, president and CEO of EWM Realty International. Downtown Brickell has more than three years of condo supply, he says. “We definitely have a tale of two markets,” he says. “Under $1 million, you can’t get enough inventory. Under $500,000, there’s way too little. But cross the $1-million mark, and there’s too much.” — Doreen Hemlock

→$1-Million-Plus Single-Family Homes

6.2%Total of single-family home sales

19%Increase in supply from the fourth quarter of 2015 to fourth quarter of 2016

6.1%Decrease in median price from the fourth quarter of 2015 to fourth quarter of 2016

25.9Months of supply (considered a buyer’s market) at year-end

$1.588 million Median price at year-end

→$1-Million-Plus Condos

4.5% Total of condo sales

69% Increase in supply from fourth quarter of 2015 to fourth quarter of 2016

0.2% Decrease in median price from fourth quarter of 2015 to fourth quarter of 2016 54.6 Months of supply at year-end

$1.546 million Median price at year-end

Source: EWM 2017 Real Estate Market Outlook

Innovation Micro Help

Fabiana Estrada runs Florida lending for non-profit Accion, an international microfinance group. Since taking over in Miami in 2011, she has more than tripled the office’s annual lending in Florida to nearly $2 million last year. Accion’s sweet spot is $10,000 loans for home based businesses, repayable in two years at 8.99% to 15.99% annual rates.

Trained as a lawyer in her native Argentina, Estrada came to the U.S. in 2000 and worked as a loan processor and loan modifier for a decade. After seeing the pain that the financial crisis wrought in 2010, she joined Accion. She’s since opened Accion offices in Orlando and Jacksonville, often serving Hispanic, black and low-income clients referred by banks. When she can’t offer a loan, Estrada directs entrepreneurs to other non-profits, government agencies and programs. “I don’t like clients to leave empty-handed,” she says. Ñ Doreen Hemlock

Business Briefs

CORAL GABLES — Century Homebuilders Group and Colombia-based real estate fund Pactia USA (a joint venture between Colombia-based infrastructure firms ConCreto and Grupo Argos) agreed to co-invest in Century’s new developments. The fund also has the option to invest in Century’s existing income-producing properties. Spain-based stone building materials manufacturer and distributor Cosentino will move its Americas headquarters to Coral Gables from Sugarland, Texas. It expects to employ about 85.

HIALEAH — The owner of Hialeah Park Racing & Casino has proposed adding up to 4,400 residential units in a mixeduse development on its 200-acre property.

HOMESTEAD — The owners of health and wellness campus The Sacred Space purchased the certified-organic Paradise Farms for $1 million. Karla Dascal and Gingi Beltran plan to add a health and wellness destination to the 7.5-acre property. Gabriele Marewski, Paradise Farms’ previous owner, will stay on with the farm.

MIAMI — Aventurabased ESJ Capital Partners will pay nearly $60 million — including assumption of debt owed to the city and to Miami-Dade County — to acquire the Jungle Island animal park. It plans to add zip lines, a water sports and swimming lagoon, water slides, new animal attractions, a private beach club and more during the next two years.

» The Related Group has indefinitely postponed its planned three-tower luxury condominium project Auberge Residences & Spa Miami. » A Scottsdale, Ariz.-based company purchased the 600-room Marriott Biscayne Bay just north of downtown for $38 million. The deal also included three condominiums at the DoubleTree Grand building next door.

» Company accelerator NewME relocated from Silicon Valley to the city’s Wynwood Arts District.

MIAMI-DADE COUNTY — Airbnb is now collecting its 6% resort tax from those who use its site for short-term rentals.

» LointerHome plans its first large-scale projects: A 471-workforce apartment community on seven acres just south of Miami International Airport, as well as a five-story class A office building in Coconut Grove.

MONROE COUNTY — The county commission raised its allowable building height of 35 feet by five feet for existing homes and by three feet for new homes, in a measure intended to encourage elevating homes to accommodate sea level rise.

» Michael A. Finney joins Miami-Dade Beacon Council as its president and CEO this month. He was previously president and CEO of Michigan Economic Development Corp. and senior adviser for economic growth to Michigan Gov. Rick Snyder. Sheldon T. Anderson, who had been filling as interim CEO, will stay on to assist with the transition.

» Tenet Healthcare promoted Cristina Jimenez to CEO of Coral Gables Hospital. She had been the hospital’s COO.

→Currency Effect

Because so many Miami-Dade residential real estate buyers are international, currency fluctuations matter. From December 2015 to December 2016, buying a home in the U.S. became more expensive for:

• Venezuelans: 58.1% more expensive

• Argentinians: 23.9%

• British: 20.0%

• Mexicans: 19.6%

• Chinese: 7.0%

• Europeans: 3.7%

… And became less expensive for:

• Brazilians: 17.8% cheaper

• Russians: 16.4%

• Colombians: 4.8%

• Canadians: 3.1%

• Japanese: 2.8%

• Peruvians: 0.3%

Source: EWM 2017 Real Estate Market Outlook

→Pricey Markets

Value per square foot of a 1,291-sq.-ft. urban condo in major cities:

• London: $2,348

• New York City: $2,089

• Tokyo: $1,284

• Moscow: $1,159

• Paris: $1,147

• Beijing: $797

• Miami Beach: $760

• Frankfurt: $521

• Toronto: $515

• Miami: $475

• Sao Paulo: $405

Source: EWM 2017 Real Estate Market Outlook

Tags: Miami-Dade, Real Estate

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