Miami: A Buyer's Market. 2016 Year in Review

The new year is always a great time to reflect on past experiences and set the goals for the road ahead. Therefore, I find it suiting to reflect on some of the major Miami real estate news/events of 2016 and what they represent for 2017.

  • It's a buyer's market. With a strong dollar and political instability, luxury condo sales slowed down in 2016, yet sales for single-family homes remained strong. There's certainly more supply and buyers find themselves in a position where they can negotiate and ask for more. Craig Studnicky, Principal of ISG recently talked about a "lack of urgency" when it comes to buyers of luxury Miami real estate. This has created great opportunities for investors to work with developers securing incentives and discounts. Nevertheless, the entry and middle - range housing market is strong in Miami. The Miami Herald reported a lack of inventory between $300-$600K. As new residents continue to arrive and there are fewer and fewer distressed opportunities, pricing remains strong in this sector.
  • Miami keeps evolving. The opening of Brickell City Centre (BCC) not only transformed the city's skyline, but also the life of all Miami residents. This unprecedented $1billion mixed used project (from Swire - the Hong Kong conglomerate), combines retail, commercial and residential spaces, creating the first urban shopping/living/enjoying luxury oasis for locals and visitors. Within months of delivery, the first BCC residential tower (Rise) was almost sold out and the second tower (Reach) is more than half sold, proving that if you build it, they will come. For more details click here.
  • Asian Investors are coming! A Chinese investor made headlines when he purchased 12 units in bulk at Brickell City Centre, and another dropped a whooping $23.5million for a mansion in the very exclusive Tahiti Beach enclave. Personally, the big news was the launch of ISG Asia, a boutique real estate brokerage firm devoted to attracting Asian investors to Miami, and the group I am fortunate to be part of. We've formed an alliance with AREAA (Asian Real Estate Association of America) and MIAMI will be hosting their annual Global Luxury Summit this April, attracting close to 800 brokers/agents from key cities in the US and Asia. The ISG Asia team not only has exclusive access to projects and luxury real estate opportunities, but also hosts one of the largest Mandarin speaking teams in the Miami area and we are now offering exclusive Explore Miami Tours. If you are interested in learning more about Miami, ask me for details.
  • Miami is more sophisticated than ever. Luxury sales may have been soft in the latter part of 2016, but Miami is here to stay. Christie's International Market Report, ranked Miami as the 7th luxury property market in the world, just as in 2015 Knight Frank ranked Miami the 6th global city that matters for ultra-high net-worth individuals.

If you ask me, some of the smartest, perhaps luckiest people I know bought real estate property in the downturn of 2009-2010. 

A soft market only opens up opportunities for locals and foreign investors alike. In 2017, make it a point and consider Miami real estate as part of your portfolio.

Contact me for details at vavirett@isgworldasia.com or fill out the form here to find out why MIAMI should be part of your New Year's Resolutions.

 

The ISG Asia Team at the Brickell City Centre Sales Offices

The ISG Asia Team at the Brickell City Centre Sales Offices

View from REACH at the Brickell City Centre 

View from REACH at the Brickell City Centre