Condo Vultures® - Market Intelligence Report

Report: Discount Discrepancy Widens Between Miami’s Mainland, Barrier Island

Discounts in Miami-Dade County’s coastal condominium markets are moving in different directions depending upon which side of Biscayne Bay a particular project is located, according to a new report from Condo Vultures® LLC.

As the average discounts in percentage terms and total dollars deepens on Miami-Dade County’s Mainland where the bulk the new construction occurred, pricing is leveling off for condo units situated on the barrier island where the beaches are located, according to the Vultures Database™ Report for August 2008.

“The growing discrepancy in discounts between Greater Miami’s Mainland and the Barrier Island is not that big of a surprise given today’s buying trends,” said Peter Zalewski, a principal with the consultancy Condo Vultures® LLC that produced the report. “Second-home buyers with foreign currencies – who tend to be the majority of the today’s purchasers – prefer the close proximity to the sand, surf, and nightlife of the Barrier Island. Full-time residents, who are all but invisible or looking to rent in this current market, usually opt for the Mainland, which tends to offer the everyday conveniences at a more affordable price.”

Discounts on the Mainland, which is comprised of Greater Downtown, Coconut Grove, Coral Gables, and South Miami for this report, averaged a drop of -32 percent, or -$174,135, through July 31, according to the data .

The average discount on the more expensive Barrier Island, which is comprised of the cities of Miami Beach, Surfside, Bal Harbour, and Sunny Isles Beach for this report, stood at -27 percent, or -$198,199, according to the data.

By comparison, the average discount on the 3,321 condos in the Vultures Database™ in South Florida through July 31 was -30 percent, or -$175,147, off of the historical high price.

The Vultures Database™ tracks properties – condos, townhouses, and single-family homes - east of Interstate 95 and/or U.S. 1 in the South Florida region of Miami-Dade, Broward, and Palm Beach counties that have decreased in price by at least -10 percent or -$100,000.

The complete Vultures Database™ is comprised of 4,818 properties that have been reduced by -$1.08 billion, or an average of -$223,233 each, and languished on the market for an average of 593 days. Condos represent 69 percent of the total inventory, and single-family houses and townhouses the remaining 31 percent of the properties in the database.

Overall, the top five markets with the biggest average discounts off of the historical high asking prices for condos, townhouses, and single-family homes are located in Palm Beach and Broward counties. Miami-Dade County has only three cities that rank in the Top 10 markets for the deepest discounts, according to the report .

Royal Palm Beach has the deepest South Florida discount at -52 percent, although this drop is based on a single property. Dania Beach ranks second with an average discount of -39 percent on 38 properties and Oakland Park is third with an average discount of -37 percent on 33 properties.

Rounding out the top five markets with the deepest discounts are Lantana with a -37 percent on a single property, and Boca Raton with an average decrease of -36 percent on 42 properties, according to the report.

In the first seven month of this year, 722 properties in the Vultures Database™ have been sold at an average discount of -38 percent, or -$320,462. That works out to a pace of 103 properties per month in a market where financing is a challenge.

This year’s number of closings is up slightly compared to 2007 when there were 1,226 properties in the Vultures Database™ that sold for an average discount of -29 percent, or -$259,586. Last year’s number of total transactions works out to an average of 102 closing per month.

The discrepancy in pricing between Miami’s Mainland and the Barrier Island is also prevalent in the deals that have closed this year. There have been 214 Barrier Island properties in the Vultures Database™ this year that have sold for an average discount of -34 percent, or -$398,488. On the Mainland, there have been 178 sales at an average discount of -37 percent, or -$325,079, according to the report.

All indicators are this trend will continue through the summer and into what is expected to be a busy winter tourism season. Consider that in the last three summer months, the difference between Miami's Mainland and Barrier Island in average discounts and total inventory on a percentage basis has continued to widen.

In July, the Barrier Island accounted for 29.1 percent of the total number of condos in the Vultures Database™, down from 29.5 percent in June, and 30.7 percent in May.

At the same time, Miami’s Mainland has seen its share of the properties in the Vultures Database™ increase to 24.7 percent in July from 23.9 percent in June and 23.2 percent in May, according to the report.

“We expect the current trend of the growing pricing discrepancy between the Barrier Island and the Mainland to continue to widen,” Zalewski said. “As buyers scoop up units on the Barrier Island at smaller discounts, sellers on the Mainland are faced with trying to differentiate their units from the nearly 21,000 new units that have been constructed since 2003.”

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Condo Vultures® Deep Discounts of the Week: Condos Built Since 2000

Here is a list of some of the biggest discounts in the Vultures Database™ on condominium units built since 2000 in Miami-Dade, Broward, and Palm Beach counties:

Miami-Dade County:

Aventura: There is a new condo in Aventura offered at $274 per square foot, which is down from $551 per square foot.
Bal Harbour: There is a new condo in Bal Harbour offered at $430 per square foot, which is down from $873 per square foot.
Coconut Grove: There is a new condo in Coconut Grove offered at $400 per square foot, which is down from $722 per square foot.
Coral Gables: There is a new condo in Coral Gables offered at $534 per square foot, which is down from $970 per square foot.
North Bay Village: There is a new condo in North Bay Village offered at $295 per square foot, which is down from $628 per square foot.
Miami: There is a new condo in Miami’s Brickell Avenue Area offered at $159 per square foot, which is down from $734 per square foot.
Miami Beach: There is a new condo in Miami Beach offered at $311 per square foot, which is down from $779 per square foot.
Surfside: There is a new condo in Surfside offered at $333 per square foot, which is down from $594 per square foot.
Sunny Isles Beach: There is a new condo in Sunny Isles Beach offered at $793 per square foot, which is down from $1,723 per square foot.

Broward County:
Fort Lauderdale: There is a new condo in Fort Lauderdale offered at $137 per square foot, which is down from $377 per square foot.
Hallandale Beach: There is a new condo in Hallandale Beach offered at $341 per square foot, which is down from $745 per square foot.
Hollywood Beach: There is a new condo in Hollywood Beach offered at $222 per square foot, which is down from $499 per square foot.
Oakland Park: There is a new condo in Oakland Park offered at $109 per square foot, which is down from $204 per square foot.
Pompano Beach: There is a new condo in Pompano Beach offered at $193 per square foot, which is down from $289 per square foot.
Wilton Manors: There is a new condo in Wilton Manors offered at $143 per square foot, which is down from $309 per square foot.

Palm Beach County:
Boca Raton: There is a new condo in Boca Raton offered at $174 per square foot, which is down from $233 per square foot.
Boynton Beach: There is a new condo in Boynton Beach offered at $111 per square foot, which is down from $201 per square foot.
West Palm Beach: There is a new condo in West Palm Beach offered at $185 per square foot, which is down from $343 per square foot.

To get more information on these properties, please don’t hesitate to contact Condo Vultures® Realty LLC at 305-865-5629 or by email at This e-mail address is being protected from spam bots, you need JavaScript enabled to view it

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Peter Zalewski is a principal with the consulting company Condo Vultures® LLC and a licensed real estate broker with Condo Vultures® Realty LLC. Peter can be reached at 305-865-5629 or by email at This e-mail address is being protected from spam bots, you need JavaScript enabled to view it Be sure to check out Peter’s blog at CondoDump.com. Don't forget to sign up for our weekly Market Intelligence Report. Looking for a property at a deep discount? You are encouraged to take a peek at the Vultures Database™.

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