End of Summer 2012 Miami Beach luxury APT report

2012 Luxury market activity

Why the high sales? | SoFi The Beach sold averages

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Go ahead, take a peek. Learn the reasons behind the mega sales in Miami, where are the luxury properties and what are the new developments.

Plus, other great stuff.

I thank you for allowing me to share with you a little bit more about the luxury market in Miami.

The purpose of the information is to help you understand the dynamics of the high-end real estate sector, giving you insight into its performance and providing a bit of background for the bigticketed sales. The data obtained is for sales made (and recorded in the MLS) from January 1-Sept 7, 2012 and for the same period for the previous year.

Within these pages, you will learn about sales volume per price tier and the average sold price per

Take a peek into Miami’s luxury market

square foot per price level in South of Fifth, what were the highest sales for Miami in 2012, 2011 and 2010 plus the average sold price per square foot for Miami Beach luxury areas.

Please note that the price range for the search criteria for the luxury market is $1M-$16M sales.

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Key Contents Luxury Market| Why the high sales?

Pgs. 4-5

South of Fifth (SoFi) review

Pgs. 6-7

Miami Beach neighborhoods

Pgs. 8-9

Luxury condos, homes & new developments

Pgs. 10-11

Art Basel, events and more about Miami

Pgs 12-13

Adriana Pinto-Torres | Multi-Million Dollar Top Producer Cervera Real Estate THE APT Team of luxurysouthbeachrealty.com 786.493.1388 | adriana@luxurysouthbeachrealty.com pintorres@gmail.com | pintorres@gmail.com

3

Luxury Market | Why the high sales?

MIAMI TOP LUXURY MARKET IS AT AN ALL TIME HIGH Miami Beach’s highestend residential real estate has had at least 12 sales that have broken the $10M mark in 2012. And, believe it or not, a considerable amount of sales have gone way beyond the $15M tier (1 at $47M, 2 over $30M and one not even listed at $25M).

Footnote: The current $125M listing of former Versace mansion on Ocean Drive is one of the most expensive listings in all“Vivamus of the country.

et metus.”

But, what about the news behind the buzz?

We have all read, heard, gasped and applauded all the record-breaking sales this year. And, why not since the most expensive home sold to date in 2012 fetched $47M and nearly doubled the highest sale for 2011. In 2011, the highest single-family residential sale in was for 13 Star Island, which closed on 4/28/2011 for $25,500,000. This sale surpassed the top sale of 2010 which was for the 88 La Gorce Cr. home sold for $16,000,000 on July 2010.

By the way, the $24M Star Island sale in 2011 was the first home sale to surpass the $20M+ threshold since 2008, when 5 lots in Sunset Island II were sold for $22.5M.

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Miami’s market has been changing from a buyer’s market to a steady-closer-to-seller’s market. Currently, Miami has 5-6 months of inventory.

But, how did we get here?

Slowly, but steadily.

After the crash, decked out million dollar homes sat vacant or dormant.

Money was tight and inventory was at a glut. Feeling the squeeze, owners slashed their prices. And yet, some of these homes didn’t move as buyers thought or knew that we hadn’t hit bottom. By mid-late 2010 buyers capitalized on the abundance of upscale properties, especially waterfront, with the understanding that prices were not going to continue their downward trend for much longer. Yes, there were bargains at the luxury level and so buyers seized the moment.

This flurry of activity at the top end of the luxury market established new precedents. The 20 most expensive real condos and homes sold in Miami in 2011 exceeded a total of $244,000,000, an increase of nearly 24% from the previous year.

Buyer’s market: Over 9 months of inventory Stable market: 6-9 months of inventory Seller’s market: Below 6 months of inventory

Homes commanded more dollars per square foot in 2011 than in 2010. For example, in 2011, homes in La Gorce Cr. sold for an average of $909/sq.ft whereas in 2010 they closed at $880/sq.ft.

Miami Beach top 6 home sales for 2011 totaled $93,470,000 1736 W 28 St, sold for $19,800,000 on 7/19/2011 4580 N. Bay Rd., sold for $15,000,000 on 9/26/2011 15 Star Island, sold for $12,720,000 on 11/23/2011 95 La Gorce Cr, sold for $11,600,000 on 9/16/2011 40 S Hibiscus Dr, sold for $9,350,000 on 5/4/2011 13 Star Island sold for $25,500,000 on 4/28/2011

But, if 2011 was good for the top luxury real estate market in Miami, 2012 has been the banner year.

Just by adding up the sale of the 4 top homes in Miami in 2012, we have over $113M in sales in the high-end luxury market. 3 Indian Creek Island Road sold for $47 million, establishing a new in Miami-Dade County. There was another impressive sale in Indian Creek for $39.4M. 29 Star Island sold for $14,325,000.

4821 Pinetree Drive sold for $13,100,000.

For the land/lot buyers, this is for you. Three contiguous lots on North Bay Rd recently sold for $19.6M On the condo front, we have also broken records in 2012. A three-floor penthouse at Continuum sold for $25M this year.

Icon’s penthouse which was listed at $19M is rumored to be pending over the list price. The highest condo sale in 2011 was for a Setai penthouse that sold for $21.5M.

South of Fifth | SoFi review Prices and sales volume are up for the luxury condo sector in South of Fifth

2012 $1,053.18/sqft. $2M-$2.99M

2011 $991.90/sqft. $2M-$2.99M

Even though prices are higher this year, volume of sales activity in the luxury sector is also up for 2012. Although not by a considerable margin, more luxury condos have sold so far this year than the same period in 2011. 84 luxury condos in the $1M-$15 range were sold in 2011 from January1-Sept 7, 2011 while 91 were sold during the same period of 2012.

Overall, luxury condos in South of Fifth fetched more per sq.ft in 2012 than the previous year. The overall average sold $/sqft in 2012 has been $1,049.77 while in 2011 it was $943.06/sqft, a 11% change over previous year.

Luxury condo units in the area are trading at higher levels than in 2011. All price tiers sold more this year than last year, except for the $3M-$3.9M and the $4M-5.9M range. T he $15M-$16M corresponds to 2 penthouses listed and sold at both Continuum towers. PH3 at Continuum South, with 4,661 sqft, sold at a commanding $3,379/sqft. The PH2 6,360 penthouse at Continuum North sold at $16.2M or at $2,547sqft.

2012 listed condo highest sale: $15,750,000 2011 listed condo highest sale: $11,500,000

The price tier with the highest volume of condo activity of for both years has been the $1M-$1.9M range.

Of all luxury tiers ($1M-$16M ), the $1M-$1.9M range attracts the highest volume of activity in South of Fifth. 50 condos were sold in this price category in 2011 from 1/1/2011- 9/7/2012 and 56 were sold this year during this same time span.

2012 SoFi Luxury Condo ($1M-$16M) Total Averages Ave .Sold $/Sqft.: $1,049.97 Ave. Sold $: 2,547,515 Ave. Discount: 9.24% Ave. DOM: 152 Ave. Square footage: 2,273

What do all these averages mean? To put things in perspective, the average square footage for 2011 was 2,405 and the average condo changed hands at $943.06. This year, the average square footage sold is smaller (2,273) and trading higher at $1,049.77/sqft. As we can see, inventory for bigger condos is tightening, so prices for these coveted units are increasing.

Miami Beach

Miami Beach | Neighborhoods South of Fifth SoFi: the 5 southernmost blocks of South Beach/south tip of the island South Beach: up to 23rd Street, Art Deco district/hotels Mid Beach: 23rd-63rd streets North Beach, 63rdd-86th streets, northern tip of island

Miami Beach

SoFi Ave Sold $/Sqft: $1,049.77 Miami Beach closed sales 1/1/2012-9/7/2012 $1M-over

South Beach Ave. Sold $/Sqft: $1,381.07

Miami Beach Mid Beach Ave Sold $/Sqft: $720.51

North Beach: Ave Sold $/Sqft: $782.68

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www.luxurysouthbeachrealty.com Adriana Pinto-Torres| APT Team of LuxurySouthBeachRealty.com Multi-Million Dollar Top Producer| Cervera Real Estate 786.493.1388| adriana@luxurysouthbeachrealty.com

The information contained herein is deemed accurate, but can’t be relied upon.

We are not responsible or liable for input, calculation errors and/or errors of omissions and market changes. We always advice those who wish to utilize this data to corroborate such information for themselves. Equal Housing Opportunity.