Miami Residences Go Big
When it comes to comparing Miami to the national scene, the weather isn’t the only thing that’s hotter—so is the real estate market. As expected, 2015 has started off with a resounding boom.
In “Miami Real Estate Update: Foreign Investment in the Magic City,” we explored the continued phenomenon of foreign investment in the city. With its incredible import/export capacity, soon to be bolstered by the completion of the Panama Canal and complementary updates to PortMiami, South Florida represents unique business opportunities, which in turn makes it one of the most exciting and competitive real estate markets in the U.S.
Penthouses hitting record prices
Two days after we published our blog, Forbes came out with a piece on current Miami penthouse news in which the city’s pre-existing record for the highest-priced home ($47 million in 2012) is being shattered by the estimated $60 million purchase of the ultra-luxury Faena House, higher than its $50 million tag. As the article reports, though the price the property fetched is magnificent, it’s not likely to remain for long: many other penthouses in the area are being listed in the same range.
Investors from all over the world are looking to establish their interests in Miami by buying vacation properties that don’t just secure a spot, but that make a statement. That statement might as well be summarized as “go big or go home.”
As Jeff Miller, the agent who secured Faena House for Zilbert International Realty, says, “We’ve seen a general trend of people looking for larger apartments… A lot of our clients have asked us to help them acquire the apartment next door.” For investors, especially those from South America, Europe and Asia, Miami is seen as “the land of opportunity,” according to one of the area’s premier real estate agents, Jill Hertzberg. These large price tags, and large square footage to go with them, underscore the quality of life attracting high-net-worth individuals to the area.
Investment properties still a wise choice
Also, two days after we published our blog, Curbed Miami covered the 4Q 2014 Real Estate Market Reports, putting a feather in the cap of the Miami area’s anticipated findings for the year: both the number of sales and the median sales price were at their highest in recent years, with the Miami Coastal Mainland named “one of the best performing markets.”
Although 2014 finished at a peak to help usher in the new year, it’s no secret that the nation’s real estate market may not keep climbing as steeply as it has been—but for now, it is nevertheless expected to continue appreciating. “I want what that investor is having” is how residential real estate investor D. Sidney Potter puts it. As he writes for The Huffington Post, “…even though the rate of appreciation is slowing…appreciation is always a good thing.”
In a recent interview with Ocean Drive, the CEO of Douglas Elliman’s Florida brokerage, Jay Parker, acknowledges that while “there may not be as many significant grand slams” for real estate investments in Miami, he doesn’t think “it will be particularly different than 2014.
Parker sees the supply of both high-end condominiums and wealthy foreign investors as sustainably satisfying the development opportunity. “The demand on South Florida is more real than it has ever been.”
Vizcaino Zomerfeld, LLP is a full-service CPA firm with deep ties to the greater South Florida community. Contact us to learn more about how you can maximize the value of your real estate holdings in the Miami area.