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AQUALANE SHORES
Mid-Year Market Report 2018
305 21st Avenue South Currently on the Market
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AQUALANE SHORES Mid-Year Market Report 2018 Presented by: The Team at Gulf Coast International Properties™ Timothy P. Savage, P.A. | Principal
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Aqualane Shores Average MLS Closed Sale First Half of the Year 2014-2018
Source Southwest Florida MLS / Excludes Beachfront Sales
Gulf Coast International Properties™ (GCIP) is proud to present the Aqualane Shores Single Family Mid-Year Market Report for 2018. We hope that you will find this mid-year report informative and useful. As a market leader in the Aqualane Shores community, we continuously look for new ways to meet and exceed our clients’ expectations. Locally owned and operated, our dedicated team of full-time real estate professionals have unique insight into this market. As a luxury real estate boutique, it is our world-class marketing programs, uncompromising integrity and our Aqualane Shores real estate sales experience that set us apart. Gulf Coast International Properties™ concierge approach to representing you means that all of our agents have a vested interest in perpetuating the exclusive and upscale reputation held by Naples and its residents. Please enjoy this report and feel free to contact us for a free professional consultation on your property. In the meantime, we hope you continue to Live Exceptionally.
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About The Neighborhood Aqualane Shores in Naples, Florida is truly one of America’s greatest residential waterfront retreats. In the early 1950’s, it was Naples’ first waterfront community and encompassed over 350 homesites. It initially served mainly as an extension to the platting of the Old Naples area with streets and avenues. However, rather than building alley ways in this community, canals were dug and seawalls were added for direct gulf access through Naples Bay. What was created at the time, and to this day differentiates Aqualane Shores from any other neighborhood in Naples, is the trifecta of features beloved by its residents. Aqualane Shores has direct gulf access, is within walking distance to Naples famous sugar sand beaches, and is located a stones throw to the much lauded 3rd Street South historic shopping and dining district. The real estate offerings in this community are among the most valuable in Southwest Florida and continue to draw discerning high-end buyers who desire location, waterfront, and the beach. As a result, Aqualane Shores has undergone an extensive redevelopment and is now the backdrop to spectacular waterfront estates with a quality of life that is second to none.
1601 Gordon Drive Currently on the Market
3 | AQUALANE SHORES
1755 Gordon Drive Currently on the Market
450 17th Avenue South Currently on the Market
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Aqualane Shores MLS Property Sales: January through June 2014-2018
Source: Southwest Florida MLS / Excludes Beachfront Sales
2018 Mid-Year Market Report The first half of 2018 market activity showed strength in fundamentals with property closings within the norms of the last several years suggesting rational and supportive buyer/seller behavior. First half results showed further strength in continuation of reduced available inventory as well as a sharply reduced average of days on market (96 days), which is down nearly 40% both year over year and as compared to the average of the prior four years. The closed sales figure as of June 30th was consistent with last year at 15, plus 4 pending sales. The current inventory of 25 active properties for sale follows those 19 pending and closed sales in the 1st half, or approximately an 8 month supply. In 2017 there were 28 properties for sale, and just less than 1 year’s supply at the time, which has been where Aqualane Shores has hovered for the last several years. The team at GCIP is very encouraged by these results, and we view the slightly tighter inventory as supportive of the stable valuations seen over the past few years. While the total and average closed sale prices show a small decline this is not yet reflective of multiple pending sales in the $6M-$8M range which will shortly change these numbers and will be reflected in our year end report. We are breaking through the ceiling on new and premium resale home prices as natural appreciation of properties continue and buyers recognize Aqualane Shores tremendous lifestyle opportunities and sometimes overlooked value. We will now take a deeper look into the various segments of the market to provide more insight into sales and trends for the first half of 2018.
655 17th Avenue South Currently on the Market
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Land Challenge
Waterfront Lot / Tear Down Sales January thru June 2014-2018
Tear down properties and any vacant lots are still in high demand as both developers and custom build clients target them. With the physical amount of original or smaller ‘tear down candidate’ homes dwindling each year, we certainly expect that the future availability of land value deals at any given time will continue to remain in short supply. There are currently only 2 listings for sale below $3M in Aqualane Shores, and only 5 listings that may be considered to be near land value. The avenue canal lots are appreciating towards the upper $2M range this year and the finger street lots on wider water will be between $3M-$4M if any come available, as there is zero supply of these currently.
Source Southwest Florida MLS / Excludes Beachfront Sales
We believe land/tear down sales will continue to stay around this range for the 2nd half of 2018. The graph shows average sale prices, however this requires some explaining. With only a few land value deals each year totaling approximately 20%-25% of sales and becoming fewer as they exist less, the average lot sales can tilt a million dollars or more year to year simply depending on whether the majority are avenue canal lots, or if available, a higher ratio of finger street lots and/or bay front lots are added into the data. A bay front lot’s value can vary due to their larger size and is likely to exceed $5M when available. To extrapolate, bay front views are second only to the beach, and the only recent activity was the sale of 953 18th Avenue South in January for $5.75M. This property had a lot area of almost 28,000 square feet and a home of over 8,700 total square feet which is currently being completely gutted and renovated. The only active bay front listing is 776 16th Avenue South with a lot area of nearly 25,000 square feet and wrap around water frontage, and with a highly upgraded 1950‘s residence offered for $9,975,000.
New Home Records
Waterfront New Home Sales January thru June 2014-2018
Gulf Coast International Properties™ continues to dominate the new home market for Aqualane Shores, giving us some unique insight into its performance. GCIP handled the marketing and sale of 4 of the 6 transactions and represented the buyers for 2 of the listings. Similar to the first half of 2017, we realized some new home records in 2018. GCIP sold a developer home touching $1,450 square feet on a finger street, and 1755 Gordon Drive was the highest all time ‘off water’ new home sale closing for $7,050,000. Both sold furnished. 4 new home sales eclipsed the $6m mark in the first half of the year, surpassing last year’s record of 3.
Source Southwest Florida MLS / Excludes Beachfront Sales
Buyer demand has been intense for new homes across all markets. The strong purchasing power of today’s buyers coupled with professionally designed homes has created a market where executive level buyers can avoid the time and energy expense of assembling a development team and the 2+years of potential pitfalls, budget overruns, and the overall stress of a renovation project and simply build new. As the market leader, Gulf Coast International Properties™ believes we will continue to see a $6m+ price point for new home sales (there are currently 7 new home listings available, all between $6M-$10M). We will continue to see higher prices per square foot as increased land values combine with improved custom quality in the builds, and overall higher construction costs support these numbers.
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Aqualane As Hybrid Aqualane Shores in Naples is considered by many residents, especially real estate professionals, as a ‘hybrid’ market. Its characteristics are a cross between those of two other communities that happen to sandwich Aqualane Shores, Old Naples to the north and Port Royal to the south. Features shared with Old Naples include proximity to downtown Naples, access to shopping and dining on 3rd Street South and 5th Avenue South, and more modest sized lots and homes. Like Port Royal, a majority of the properties are on navigable water, attract avid boaters, boast many Naples Bay retreats with terrific views and offer homes with considerable privacy. Further, the average prices tend to be slightly above Old Naples but below Port Royal. So when buyers are looking for a property, Aqualane Shores tends to be an attractive combination based on price point and lifestyle choice. If buyers are attracted to the Old Naples lifestyle and walkability but also wish to spend time on the water with deep water direct access boat dockage right in their own backyard, then they need to look no further than Aqualane Shores.
Aqualane Shores: The 2nd Half Of 2018 Gulf Coast International Properties™ was very encouraged by the first half of 2018. While the combination of favorable macroeconomic conditions and a high concentration of wealth continues to support high end markets, Aqualane Shores results reflected a rational, stable, and consistent market. While some new records are being set each year depending on the metric, the numbers for average sale price, total dollar sales, time on market and current supply indicate that we have an ideal buyer/seller balance, and show excellent support for recent years’ valuations. There have not been rapid increases in volume which would be suggestive of an overheating market. Going forward, this ‘hybrid’ waterfront community should have a strong 2nd half of the year. New homes are coming to completion soon, supply is sufficient for buyers, and financing and equity markets are still favorable. Add to this the unbeatable lifestyle and we have no doubt that Aqualane Shores real estate sales will maintain this healthy pace in a balanced buyer/seller environment.
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The most comprehensive luxury real estate network in the world. All information herein is subject to change and no representation is made to its accuracy. © 2018 by Gulf Coast International Properties™ An equal opportunity company. If your property is presently listed with another Agency, or is currently being marketed by Gulf Coast International Properties™, please consider this a matter of information and not an intent to solicit.