There is a fundamental disconnect between supply & demand in the Miami and Miami Beach condo markets. Inventory has steadily risen across market segments, all while transaction volume has dropped off. Higher price points are the worst offenders. The Miami $1M+ market saw a 147% increase in supply since 2013, while sales dropped 32% in the same period
The general Miami condo market is experiencing drastic reductions in transaction volume. We are currently below 2011 volume.
However, there are some brights spots in the market.
Sales volume for Miami Beach one bedroom condos, $300K – $600K, is up
This last cycle has seen a boom in the high end of the market and it seems that the majority of new developments, especially in Miami Beach, are building large and expensive units.
Miami Beach is a coastal city in Miami-Dade that stretches to 82nd street. It is a very popular destination and has been the site of much of the recent high end condo development.
Very few new developments incorporate many one bedroom floor plans, if at all.
A sizable portion of the market here is comprised of second and third home buyers.
Miami Beach is a beautiful destination and a great place to have a vacation home.
A $600K one bedroom condo is a very piece of property here and gets you into some of the best buildings. So it seems that there is a strong market for high-quality yet not very large, residences that are probably vacation homes.
South Beach in particular has seen a good amount of boutique new development, and almost all feature only large floor plan units.