trends - how is the south florida real estate market performing?

2015R E A L E S T A T E M A R K E T R E P O R T

O N E S O T H E B Y S R E A L T Y . C O M

14 | 2015 TRENDS Market Report

Three Hundred Collins, South Beach | 300Collins.com

For assistance with your real estate needs, please contact:

Enrique J. TejeraGlobal Real Estate AdvisorONE Sotheby’s International [email protected]

SearchMiamiBeach.com

For more information, please visit:

ONE Sotheby’s International Realty | 3

Looking back on ONE Sotheby’s International Realty’s seven years of operation, it’s telling to hear how the South Florida real estate market conversation now takes place with a drastically different tone. In the very first TRENDS market report published in 2010, it is stated that the general mood at the time was a sense of cautious optimism. Fast-forward to 2015, the year-to-year improvement of the market has led South Florida to become one of the most sought-after residential destinations in the world. Miami was ranked the happiest city to work in by Forbes Magazine and is now considered one of the top ten cities that matter to ultra-high-net-worth investors. By the same token, Fort Lauderdale, a prime destination for yacht owners and boating connoisseurs, is experiencing great demand due to its many canals and waterfront living options.

An ever-evolving real estate market must be analyzed in ever-evolving ways: this year’s report was prepared in conjunction with Integra Realty Resources (IRR) – Miami\Palm Beach, one of the nation’s leading real estate consulting firms. This joint publication is a new venture meant to provide insight into residential markets in Miami-Dade and Broward Counties.

Our two firms collaborated to provide this annual report to foster further dialogue regarding emerging market conditions at the submarket level. We endeavored to provide actionable insight into the direction of these various submarkets without the typical hyperbole or marketing fanfare.

IRR Miami was aided by interviews with ONE Sotheby’s International Realty associates and others in the marketplace, who provided important insight into the drivers in these various submarkets. To provide a consistent format for comparison, the team revised the methodology for quantifying the condominium value changes (see Methodology on page 5) and developed comparative statistics for the single-family, waterfront and non-waterfront markets.

The information contained herein is general to the market and should not be construed to represent advice on a specific property. We strongly encourage interaction with ONE Sotheby’s International Realty agents to provide relevant, property-specific advice. This report is meant to provide an overview of the major markets and submarkets for comparative purposes only and to frame some reasonable dimension of market activity and direction in the year to come.

We hope you find the report useful and even insightful, as you explore one of the most dynamic housing markets in the United States today. We stand ready to assist with further questions and comments and hope your feedback will improve future annual and quarterly reports.

Daniel de la Vega Anthony M. Graziano, MAI, CRE President & Managing Partner Senior Managing Director ONE Sotheby’s International Realty Integra Realty Resources


Western Suburbs Southwest Ranches Plantation Sunrise Weston ParklandBroward | North End Lauderdale-by-the-Sea Hillsboro Beach Lighthouse Point Bay Colony Sea Ranch The Landings Coral Ridge / C.R. Country Club East Fort Lauderdale Las Olas Isles Harbor Beach Fort Lauderdale Beach Rio Vista Victoria Park & Colee Hammock Sunrise KeyBroward | South End Hollywood Beach Hallandale Beach

Miami | North End Aventura Golden Beach Bal Harbour Surfside Sunny IslesThe Islands Bay Harbor Islands Indian Creek Normandy Isles La Gorce Sunset Islands Venetian Islands Palm/Hibiscus/Star Islands Fisher Island Key BiscayneMiami Beach South Beach Mid Beach North BeachDowntown Miami Midtown Edgewater Downtown Miami BrickellMiami | South End Coconut Grove Coral Gables Pinecrest Palmetto Bay CocoPlum Gables Estates Snapper Creek Lakes Ponce-Davis & High Pines Old Cutler Bay

SF Homes

SF Homes

SF Homes Condos

SF Homes Condos

SF Homes Condos

SF Homes Condos

SF Homes Condos

Condos

SF Homes Condos

Broward County

Miam

i-Dade County

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page 16 page 34

page 12 page 32

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Methodology

This report differs from prior ONE Sotheby’s International Realty market reports in the analytics models developed in conjunction with IRR Miami.

The report cannot be compared to prior annual or quarterly reports due to changes in the manner in which the metrics were developed for single-

family and condo developments.

Prior reports on single-family pricing relied on price averages which excluded certain classes of assets based on price thresholds. The current

model abandons the variable minimum price threshold view so that averages over time are not skewed by elimination of transactions beyond a

threshold and changes in market conditions do not skew the directionality of the market averages.

The most significant change in methodology is the development of the condominium index. The difficulty in comparing existing condominium

project average pricing is that the pricing averages have no control over penthouse units, waterview versus waterfront or age and market position

of the product. ONE Sotheby’s International Realty and IRR Miami developed an index of relevant condominium towers that comprise what we

consider to be a representative sample of the luxury projects within each submarket. The inclusion of each project was vetted by brokerage and

appraisal staff from the respective firms and the sampling reflects the center of the luxury market as it relates to the specific submarket.

Average pricing data was then calculated for each of the relevant years by submarket and unique units were excluded from the sample to avoid

skewing the average price indicators. The implementation of project samples also helped control the variability brought about by merely averaging

all condo projects within a specific submarket, which when comparing multiple years was less reflective of changing market conditions.

While this methodology only reflects a “sample” of the condo market, the number of projects and number of units in the sample are considered

representative of the market. The sample pool of projects does not include pre-construction projects. Therefore, the averages and indicators

reflect contemporary existing peers and are not meant to reflect pricing of the newest projects coming to market.

This methodology will also allow us future analytical capability to project floor premiums, view premiums and penthouse premiums since the data

will be isolated for direct and discrete comparison on these function points. We hope this will clarify directionality of the market and allow for

deeper analysis in future reports.

This report is not meant to replace property analysis by a qualified broker and should not be applied to specific properties without consultation

with a professional. The report is meant to inform on broader trends and to facilitate comparison and forecasting at the macro market level.

Louver House, South Beach | LouverHouse.com


Luxury SpotlightMiami-DadeSingle-Family Homes

General Statistics

The Miami-Dade housing market offers a broad

variety of single-family, attached and condo

real estate options. The general market has

experienced a significant recovery since 2011,

which dramatically increased through 2014.

The recent Case-Schiller index lists Miami as

one of the top two fastest growing housing

markets in terms of the CS value change index,

nearly double the national average. This trend

is expected to continue in 2015 due to a lack

of new, single-family homebuilding other than

spot-lot redevelopment, which will add major

inventory to level off pricing. These changes

are occurring across every value spectrum,

but none more dramatically than in the luxury

housing market segment.

There is very little developable land in Miami

and essentially no vacant land within the luxury

markets east of I-95. This is giving rise to tear-

down and redevelopment and is accelerating

the value appreciation within these markets.

The existing, single-family housing stock will

likely outperform the Florida housing market.

Observers lament that these rapid increases

in pricing are leading to an “affordability gap”,

where new residents cannot afford to own a

single-family home. This hurts Miami’s ability

to attract major employers and increases cost

of living, both of which could negatively affect

employment growth. Luxury markets, however,

are decoupled from employment growth.

We project the luxury, single-family market

will remain strong. While global economic

conditions are shifting, which may extend

market times, the level of demand for luxury,

single-family far outweighs current supply.

In 2014, the dominant trend was continued

price increases with fewer transactions. We

expect this will continue into 2015.

Miami: Through a Global Lense

“Happiest U.S. City To Work In”- Forbes.com

“Second Biggest Banking Hub In the U.S.” (after New York City)

- Business Insider

“One of the Top Five New Tech Hubs”

- NBC News

“The Strongest HousingMarket in the U.S.”

- The National Law Review

Non-Waterfront, Single-Family Homes

2010 2011 2012 2013 2014

15,366 1,091$171

12,527 1,325$168

10,687 1,850$174

12,116 2,420$198

15,535 2,626$204

# For Sale b# Sold bPPSF b

PPSF Trendline b

Waterfront, Single-Family Homes

2010 2011 2012 2013 2014

3,073 130

$314

2,603168

$495

2,377 221

$412

2,332 320

$463

2,539 290

$519


PPSF Trendline b

“Second U.S. City That Matters Most to UHNW* Individuals”

- Knight Frank

* Ultra-High-Net-Worth


Luxury Spotlight

$1M to $5M TransactionsAverage Home Price


$10M+ TransactionsAverage Home Price

2010 2011 2012 2013 2014

$1,8

56,0

00

$1,8

78,0

00

$1,8

49,0

00

$1,8

71,0

00

$1,8

83,0

00

h

112

h

4,036

h

123

h

3,228

# Sold

# For Sale

h

288

h

3,046

h

280

h

3,363

h

171

h

2,856

2010 2011 2012 2013 2014

$6,7

50,0

00

$6,4

35,0

00

$5,9

23,0

00

$6,6

28,0

00

$6,8

17,0

00h

1

h

407

h

13

h

385

# Sold

# For Sale

h

15

h

408

h

23

h

459

h

12

h

466

2010 2011 2012 2013 2014

N/A

$17,

120,

000

$14,

486,

000

$15,

184,

000

$18,

274,

000

h

0

h

222

h

6

h

227

# Sold

# For Sale

h

6

h

277

h

6

h

350

h

5

h

268

9405 Old Cutler Lane, Coral Gables

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Miami | South EndNon-Waterfront, Single-Family Homes

Downtown | Miami Beach | Ft. LauderdaleCoconut Grove

Coral Gables

$600$500$400$300$200$100$0

Pinecrest

Palmetto Bay Snapper Creek Lakes

CocoPlum

$233$183$223$138$334$407$289

$244$252$222$136$346$412$318

$330$292$180$447$524$401

$260$263$235$142$319$368

$310

$322$304$256$164$413$467$373

Ponce-Davis& High Pines

Average Price per Square Foot

Coconut Grove: g 12.4%

Percentage Change2013 – 2014

For the purposes of this study, we categorize

Miami’s South End as all neighborhoods East

of US-1, spanning from Coconut Grove north to

Palmetto Bay south. CocoPlum and Snapper

Creek Lakes are subsections of the Coral

Gables market area. All neighborhoods in this

market showed gains over 2013 pricing, with

Pinecrest showing the strongest percentage

increase over 2013 performance. In terms of

pricing, Snapper Creek Lakes is well ahead

with 2014 pricing at $524 per square foot.

Notably, Snapper Creek Lakes is a gated

community of just 124 homes, with pricing

as much a function of its limited supply as of

its expansive sites and custom-built, luxury

residences. Palmetto Bay, located furthest

from Downtown Miami, has the lowest average

pricing per square foot, although pricing has

been positive each of the last five years.

Of note for the area is how well homes in the

Ponce-Davis & High Pines submarket compete

in pricing with the top of Miami’s South End.

$362

Ponce Davis & High Pines: g 7.5%

Pinecrest: g 14.1%

Coral Gables: g 8.6%

Palmetto Bay: g 9.8%

Snapper Creek Lakes: g 12.2%

CocoPlum: g 8.2%

Omissions due to low transaction numbers or absence of market: Gables Estates, Old Cutler Bay and Deering Bay


Despite Pinecrest’s #4 ranking in our Luxury Spotlight, the market has a

large dimension and range in pricing. North Pinecrest (north of SW 120th St.)

and East Pinecrest (east of Ludlam Rd.) are the strongest neighborhoods.

Given the level of redevelopment, the Luxury Spotlight generally reflects the

Northeast Pinecrest market. Pinecrest is undergoing a major transformation

with 1960’s and 1970’s homes being purchased for demolition/redevelopment,

giving rise to lower average pricing. We expect the Pinecrest submarket will

outperform in 2015 as more tear-downs renew the age of the housing stock.

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# Transactions

Coconut Grove

187 199 14 8 39

Coral Gables

191 263 19 9 37

Pinecrest

215 284 8 7 46

Palmetto Bay

250 301 10 6 56

CocoPlum

243 308 11 8 52

Snapper Creek L.

P. Davis & H. Pines

2010

2011

2012

2013

2014

162 352

200 419

200 465

248 559

220 465

Ponce-Davis & High Pines is the only unincorporated area in

this market that encompasses approximately one square

mile. It ranked third out of seven analyzed submarkets in

terms of average pricing per square foot, although growth

came in last of all at just 7.5% appreciation over 2013 figures.

With the exception of Palmetto Bay, these neighborhoods

have very limited availability of land for new housing. Markets

of infill non-waterfront are trading well over $300 per square

foot with the exception of Palmetto Bay and Pinecrest. All

of Miami’s South End submarkets benefit from strong, local

public and private schools in the neighborhood.

Coconut Grove

Coral Gables

Pinecrest

Palmetto Bay

CocoPlum

Snapper Creek Lakes

P. Davis & High Pines

Avg. Home Price # Transactions

$1,638,555 81

$1,511,232 163

$2,374,642 80

$650,649 127

$2,762,500 6

$5,308,237 3

$2,932,111 23

8645 SW 54 Avenue, Ponce-Davis

Spotlight: 2014 Luxury Residence Transactions*

* The top 50% of each market, by average price.

CocoPlum and Snapper Creek Lakes are subsections of Coral Gables.


Miami | South EndWaterfront, Single-Family Homes

Omissions due to low transaction numbers or absence of market: Pinecrest, Snapper Creek Lakes, Ponce-Davis & High Pines and Deering Bay

Downtown | Miami Beach | Ft. Lauderdale


For the purposes of this study, we categorize

Miami’s South End as all neighborhoods East

of US-1, spanning from Coconut Grove north

to Palmetto Bay south. CocoPlum, Gables

Estates and Old Cutler Bay are located within

the municipal boundaries of the City of Coral

Gables, but are considered separately by

market participants and are presented as

such in this study.

The neighborhood with the highest pricing per

square foot of building area in this waterfront

market is Gables Estates, with 2014 pricing

at an average $1,329 per square foot, up an

impacting 64.9% over 2013 levels. This gated

community only offers waterfront, single-

family homes, ideal for families and boating

enthusiasts alike. Gables Estates is followed

by Old Cutler Bay, another exclusive, gated

community in Coral Gables, at an average $698

per square foot, up 4.0% from 2013 levels. This

is a more stable submarket, only fluctuating

within a little over $100 in five years.

Old Cutler Bay: g 4.0%

Coral Gables: g 23.7%

Coconut Grove: g 42.9%

Palmetto Bay: g 6.3%

Gables Estates: g 64.9%

CocoPlum: g 16.3%

Palmetto Bay

CocoPlum Old Cutler Bay

Gables EstatesCoconut Grove

Coral Gables

$1,200$1,000$800$600$400$200$0 $1,400

$593$480$162$515$659$723

$551$459$164$551$987$599

$518$553$188$533$1,095$693

$483$531$191$564$806$671

$690$657$203$656$1,329$698



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# Transactions

Coconut Grove

18 9 3 4

Coral Gables

20 10 3 4

Palmetto Bay

23 13 12 5

CocoPlum

25 16 8 6

Gables Estates

25 12 8 9

Old Cutler

2010

2011

2012

2013

2014

10 56

8 57

8 86

4 77

10 76

Coconut Grove

Coral Gables

Palmetto Bay

CocoPlum

Gables Estates

Old Cutler Bay


$5,396,250 4

$6,452,708 25

$3,970,000 5

$5,216,667 3

$9,250,000 4

$4,125,000 4

The general Coral Gables market has remained stable throughout the

past five years. In 2014, however, it reached an average of $657 per

square foot, over $100 over 2013 figures. Of note is the slight, year-

over-year decline in pricing for Coconut Grove waterfront residences

from 2010 through 2013, totaling an 18.54% drop, only to come back

in 2014 at an average $690 per square foot, 42.9% higher than 2013

figures. All analyzed neighborhoods except for Old Cutler Bay are at

their highest average price per square foot in all five years analyzed.

When looking at neighborhoods with waterfront and non-waterfront

homes, waterfront residences trade at an average 1.5 to 2.0 times the

average pricing of non-waterfront residences in the same submarket.

Taking the #1 spot by a wide margin with average home pricing at

$9,250,000, Gables Estates is considered the Beverly Hills of Miami’s

South End. Even more impressive is that Gables Estates is part of

Coral Gables, the second-ranked market. Miami’s South End luxury

submarkets are strengthened by their renowned private schools,

which tend to be key deciding factors for home-buying families.


935 Bella Vista Avenue, Coral Gables


CocoPlum, Gables Estates and Old Cutler Bay are subsections of Coral Gables.


Within Mid Beach, there are three areas where

homes usually outperform the general market

by a wide margin, which is why we extracted

them and highlighted their statistics in this

section. These areas are La Gorce Subdivision

— with La Gorce Drive and a segment of Alton

Road; two roads with luxury, non-waterfront

homes usually facing La Gorce Golf Course —,

North Bay Road and Pine Tree Drive.

Single-family pricing in Mid Beach has trended

steadily upward with a 77.1% increase over the

past five years. Of its analyzed submarkets, La

Gorce Drive experienced the most significant

growth from 2013 numbers at 35.7%, reaching

an average of $578 per square foot. In 2014,

all areas performed at double-digit increases

compared to the previous year and, although

this level of appreciation is not realistically

repeatable year-over-year, continued double-

digit gains are expected during 2015 provided

interest rates remain low.

$400$300$200$100$0 $600

Miami BeachNon-Waterfront, Single-Family Homes


Mid Beach

La Gorce Subdiv. - Alton Rd.North Bay Road

Pine Tree Drive


North Bay Road: g 23.6%

Mid Beach: g 21.1%

L.G.S. - Alton Road: g 14.3%

Pine Tree Drive: g 17.3%

$500

Omissions due to low transaction numbers or absence of market: South Beach and North Beach

La Gorce Subdiv. - La Gorce Dr.

$448

$335$522$502

$578

$370

$445$406

$293$426

$304

$308$349

$318$324

$272

$298$335

$379$319

$253

$292$358

$233$219

L.G.S. - La Gorce Drive: g 35.7%

Miami’s South End

Miami’s North End | Ft. Lauderdale

Downtown


Our Luxury Spotlight stars are North Bay Road, Pine Tree Drive and La Gorce

Drive, all three around the $2 million mark for non-waterfront homes. These

streets are the setting for many ultra-luxury, single-family homes, attracting high-

profile buyers from around the world. These properties also have a walkability

advantage over similarly priced homes in some of the islands, as they’re closer

to a plethora of entertainment options offered in Mid Beach and South Beach.

La Gorce Subdivision, North Bay Road and Pine Tree Drive are subsections of the Mid Beach market area.

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6222 Alton Road, Miami Beach



# Transactions

Mid Beach

2010

2011

2012

2013

2014

73

100

95

133

122

N. Bay Road

Pine Tree Drive

11 6

6 12

14 11

13 9

14 12

L.G.S.Alton Rd.

L.G.S.La Gorce Dr.

4 2

3 7

11 7

8 17

12 13

Avg. Home Price # Trans.

$1,960,099 41

$2,355,000 5

$2,632,143 7

Mid Beach

N. Bay Road

Pine Tree Drive

L.G.S. - Alton Road

L.G.S. - La Gorce Drive

$1,589,167

$2,395,180

6

5

“A member of La Gorce Country Club will certainly find a price premium worthy if

the residence sits on La Gorce Golf Course. The club has been known to extend

the privilege of providing golf cart access directly from homes to the golf course, a

feature that ultimately proves to be a weighing factor on potential buyers.”

– Dina Goldentayer, ONE Sotheby’s International Realty

Pine Tree Drive and North Bay Road are mostly known for their waterfront product,

but non-waterfront homes for both areas are in the $500-per-square-foot range,

outperforming the general Mid Beach market by 12% and 18% respectively. Alton

Road in La Gorce is the only analyzed submarket that didn’t reach Mid Beach’s

average pricing during 2014, most likely due to the price boost experienced by

the remaining submarkets and, ultimately, the general area.


Within the Miami Beach non-waterfront, single-

family homes section, four Mid Beach areas

were extracted in order to highlight its top

performing markets. La Gorce Subdivision’s

Alton Road and La Gorce Drive do not include

waterfront residences and were therefore

excluded from this section.

Waterfront residences analyzed trade at an

average pricing 1.8 to 2.2 times the non-

waterfront average pricing. Price appreciation

was slower between 2010 and 2014, primarily

because values did not decline as steeply

in these submarkets during the downturn.

The limited supply available in these areas,

however, supports continued strength, even as

pricing stabilizes in other submarkets.

While Mid Beach area pricing increased 21.8%

from 2013 to 2014, its prominent North Bay

Road and Pine Tree Drive markets experienced

larger gains at 43.0% and 28.1% respectively.

Miami Beach’s single-family market is usually

in very high demand and 2014 numbers prove

to be no exception.

Miami BeachWaterfront, Single-Family Homes

Miami’s South End


Downtown



North Bay Road: g 43.0%

Mid Beach: g 21.8%

Pine Tree Drive: g 28.1%

$608

$506$813

$628

$566$775

$598

$589$964

$786

$758$976

$957

$971$1,396

$600$400$200$0 $1,400$1,000$800 $1,200

Omissions due to low transaction numbers or absence of market: La Gorce Subdivision (Alton Road and La Gorce Drive), South Beach and North Beach

Mid Beach

North Bay Road

Pine Tree Drive



$10,485,958 12

$17,275,000 4

$6,400,000 3

Mid Beach

N. Bay Road

Pine Tree Dr.

# Transactions

Mid Beach

2010

2011

2012

2013

2014

19

21

31

26

32

N. Bay Road

Pine Tree Drive

8 7

10 5

6 6

5 9

10 4

North Bay Road is far and beyond the most high-end waterfront market in Miami Beach. Waterfront

homes in this area come with unbeatable views of Biscayne Bay and the Downtown Miami skyline.

North Bay Road homes also have an edge when it comes to buyers looking for the latest technology

and contemporary architecture.

Pine Tree Drive, running through eastern Mid Beach and providing canalfront residences, closed

2014 at $6,400,000 for its luxury segment. While much lower than Mid Beach in general, Pine Tree

Drive had the lowest transactional volume and is therefore subject to price volatility.North Bay Road and Pine Tree Drive are subsections of the Mid Beach market area.

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528 Lakeview Court, Miami Beach



Mid Beach contains some of South Florida’s most spectacular homes, many of them set on the

spotlight areas of North Bay Road and Pine Tree Drive. These streets have garnered a great deal

of attention due to the high profile of some of their residents, which undoubtedly increases the

demand for their exclusive properties.

Mid Beach is also the setting for many new developments such as The Residences at Ritz-Carlton,

a 111-residence luxury project featuring 15 exclusive villas directly on Surprise Lake. The Piero-

Lissoni-designed development is one of the most awaited new buildings because of the Ritz-

Carlton brand’s legendary service and quality standard. We expect the Mid Beach waterfront

market to continue drawing great demand, as new developments and an already strong, existing

housing market make the neighborhood one of the most exciting living options in the city.


Key Biscayne: g 6.3%


The neighborhoods classified as “The Islands”

are categorized primarily by being surrounded

by water as the name suggests. Stretching

from Key Biscayne south to Bay Harbor

Islands north, these submarkets are separated

from the adjacent mainland by waterways or

canals and are accessible via causeways.

Average pricing can vary widely from Key

Biscayne at $795 per square foot for a non-

waterfront home to sub-$300 per square foot

in Normandy Isles. The Islands market area

includes the neighborhoods of Key Biscayne,

Palm/Hibiscus/Star Islands, Venetian Islands,

Sunset Island, La Gorce Island, Bay Harbor

Islands, Normandy Isle and Indian Creek.

The Village of Key Biscayne was, by far, the

strongest performer on price per square foot,

with 2014 average pricing up 6.0% over 2013

levels, and 30% higher than the next highest

neighborhood (La Gorce Island). La Gorce and

Venetian Islands were almost even at $613

and $611 respectively for 2014.

Normandy Isles: g 10.8%

Venetian Islands: g 26.2%

Palm/Hibiscus/Star: g 31.7%

Sunset Islands: g 6.7%

Bay Harbor Islands: g 23.1%

La Gorce: g 30.7%

$600$500$400$300$200$100$0 $900$800$700

Key Biscayne

Palm/Hibiscus/Star

The IslandsNon-Waterfront, Single-Family Homes

Venetian Islands

Sunset Islands

La Gorce Island Normandy Isles

Bay Harbor Islands

$506$380$256$464$382$219$174

$795$499$611$589$613$379$247

$547$383$385$428$532$256$154

$612$413$454$497$538$331$179

$748$379$484$552$469$308$223

Miami’s South End


Downtown


Omissions due to low transaction numbers or absence of market: Indian Creek and Fisher Island

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# Transactions

Key Biscayne

10 7 4 5 17

Palm/Hib./Star

14 4 5 8 17

VenetianIslands

19 6 2 7 36

Sunset Islands

23 8 2 9 30

La GorceIsland

19 7 4 19 26

Bay Harbor Islands

NormandyIsles

2010

2011

2012

2013

2014

59 4

63 5

63 6

59 5

63 2

The highest percentage gain in the non-waterfront category

for The Islands goes to Palm/Hibiscus/Star Islands with

31.7% appreciation over 2013 figures. The Venetian Islands

showed the strongest cumulative gain over the five-year

period, with average pricing up 139% over 2010 levels.

Normandy Isles is to “The Islands” what Palmetto Bay is to

Miami’s South End. The sleepier neighborhood with the largest

upside relative to its peers, Normandy Isles looks attractively

priced. Some of this pricing differential is embedded in the

older housing stock, but the spread ($247 versus competitive

island peers at $500+ PSF) is too great to be ignored.

Key Biscayne

Palm/Hibiscus/Star

Venetian Islands

Sunset Islands

La Gorce Island

Bay Harbor Islands

Normandy Isles


$3,310,731 26

$1,595,000 2

$2,193,889 9

$2,716,250 4

$6,500,000 1

$1,362,188 8

$627,885 13

The only non-waterfront inventory in the Palm/Hibiscus/Star chain is located

on Palm and Star Islands. These very few non-waterfront properties are what

some might consider “tear-downs” at $1.25 million – $1.4 million, making their

average pricing a great deal lower than it would normally be. La Gorce and

Key Biscayne hold the #1 and #2 spots in luxury average pricing. La Gorce is a

very lush, gated community, making it one of the most private neighborhoods

in Miami. Key Biscayne, located further south, is a 1.5-square-mile village

surrounded by acres of parks and beaches. Pricing in this exclusive island

usually remains high due to its low supply of homes and developable land.



531 S. Mashta Drive, Key Biscayne


The IslandsWaterfront, Single-Family Homes

$2,500$2,000$1,500$1,000$500$0

$1,178$841$566$398$880$1,179$356$280

$1,747$922$653$924$909

$488$437

$1,278$1,195$855$967$908$1,986$781$352

$1,688$1,041$972$1,029$1,658

$642$415

$1,419$1,244$1,122$1,463$2,190$998$720$531

Miami’s South End


Downtown


Key Biscayne: h 15.9%


Key Biscayne’s waterfront homes reached

the highest pricing in the market in 2010 and

2011, at $1,178 and $1,747 respectively. The

next three years failed to reach the mark set

in 2011 and Key Biscayne pricing ended 2014

at $1,419 per square foot, up 20% from 2010

levels but down 15.9% from 2013. The overall

top performer in terms of average pricing and

percentage gain is La Gorce, with 2014 average

pricing up 150% over the 2010 average of $880

and 32% over 2013 figures, ending the period

at an average $2,190 per square foot. Sunset

Islands took the second spot in 2014 at $1,463

slightly above Key Biscayne at $1,419.

Notably, the average number of transactions

per submarket (2 to 19) leaves these prices

and annual appreciation gains subject to wide

swings, which are heavily dependent upon

specific transactions. However, the numbers

are relevant considering the limited amount of

homes available, which drives average pricing

over $1,000 per square foot consistently.

Bay Harbor Islands: g 12.1%

Venetian Islands: g 15.4%

Palm/Hibiscus/Star: g 19.5%

Sunset Islands: g 42.2%

Indian Creek: N/A

La Gorce: g 32.1%

Normandy Isles: g 28.0%

Key Biscayne

Palm/Hibiscus/Star

Venetian Islands

Sunset Islands

La Gorce Island Bay Harbor Isl.

Indian Creek Normandy Isles

N/A

N/A

no transactions

no transactions

Omissions due to low transaction numbers or absence of market: Fisher Island


sing

le-f

amily

hom

es

# Transactions

Key Biscayne

13 2 4 1 1

Palm/Hib./Star

20 6 2 0 3

VenetianIslands

17 17 2 3 1

Sunset Islands

15 12 2 0 4

La GorceIsland

18 10 2 2 5

Bay Harbor Islands

NormandyIsles

2010

2011

2012

2013

2014

7 9

9 12

16 12

8 11

9 19

11

8

15

21

9

IndianCreek

Unlike most of the other markets studied in this

report, which showed price appreciation between

2013–2014 with a decline in the total number of

transactions, almost all of these submarkets had

more total transactions in 2014 than in 2013, with

the exception of Sunset Islands and Normandy

Isles. This could be a sign that appreciation rates

are expected to continue in the near future, since it

seems increased pricing is not slowing velocity. The

demand for The Islands will remain high, as their

luxurious lifestyle and amenities coupled with their

unparalleled privacy are highly desirable.

Key Biscayne

Palm/Hibiscus/Star

Venetian Islands

Sunset Islands

La Gorce Island

Indian Creek

Bay Harbor Islands

Normandy Isles


$9,417,500 4

$17,638,830 5

$7,015,000 5

$13,814,000 4

$14,250,000 2

$21,200,000 2

$4,333,333 3

$1,383,000 6

The waterfront Islands submarket represents the absolute top of the entire Miami-

Dade luxury market. Indian Creek and Palm/Hibiscus/Star hold the #1 and #2 spot in

the highest overall luxury pricing. Indian Creek’s main price driver is the fact that there

is little to no housing supply, as some years go by without seeing a single transaction.

To put these numbers in perspective, Indian Creek’s 86 residents’ net worth is estimated

at over $37 billion (most of which comes from a single uber-investor), which is greater

than the gross domestic product of half the world’s nations. In 2012, ONE Sotheby’s

International Realty represented the buyer in a $47 million transaction in Indian Creek,

breaking the county record at the time.



9 Harbor Point, Key Biscayne



All neighborhoods in Miami’s North End show

increased pricing over the five-year period

analyzed. Pricing in Bal Harbour showed the

most volatility with a 70% increase from 2012

to 2013 and a 20% decline from 2013 to 2014.

This is not surprising given the limited number

of transactions (under 25 total transactions

over five years). The strongest increase over

the five-year period took place in Golden Beach,

which went up 90% from $226 per square foot

in 2010 to $429 per square foot in 2014.

Surfside: g 7.4%

Aventura: g 4.2%

Bal Harbour: h 20.3%

Golden Beach: g 2.9%

$600$500$400$300$200$100$0 $900$800$700

Aventura

Golden Beach

Bal Harbour

Surfside


Miami | North EndNon-Waterfront, Single-Family Homes

$194$226$479$200

$208$221$401$193

$262$417$812$270

$273$429$647$290

$235$298$473$226

Downtown | Miami Beach

Broward’s South End | Ft. Lauderdale

# Transactions

Aventura

2 40

Golden Beach

9 46

BalHarbour

6 51

Surfside

2 37

2 57

2010

2011

2012

2013

2014

16 6

9 7

13 6

18 6

14 9

Aventura

Golden Beach

Bal Harbour

Surfside


$1,201,000 5

$1,798,900 5

$3,887,500 2

$664,500 26

The most attractive luxury growth opportunity

in Miami’s North End is in the usually sleepy

Surfside non-waterfront inventory, which is

trading actively and at a notable discount to

area neighborhoods, making it one of Miami’s

markets to keep an eye on for those looking

to invest in property. Bal Harbour ranks #1 for

highest average home pricing.

Omissions due to low transaction numbers or absence of market: Sunny Isles * The top 50% of each market, by average price.


Aventura is this section’s only market within the Miami mainland. Others are located on barrier islands.


sing

le-f

amily

hom

es

Miami | North EndWaterfront, Single-Family Homes

$1,200$1,000$800$600$400$200$0 $1,400


Broward’s South End | Ft. LauderdaleAventura

Golden Beach

Bal Harbour

Surfside



Pricing volatility in the waterfront category for

this market area is again dominated by the Bal

Harbour neighborhood, with the top average

price of $1,287 per square foot in 2013, 48%

higher than the next highest neighborhood for

any time period analyzed. Bal Harbour sales

volume for waterfront homes has averaged

one annual sale, limiting the reliability of the

analysis for this area. But for those listing a

Bal Harbour waterfront home, the market price

point will probably start at $1,200 per SF.

Surfside: h 14.9%

Aventura: g 8.9%

Bal Harbour: N/A

Golden Beach: g 16.4%$356$867

$607

$256$552

$353

$327$745$1,287$713

$300$791$796$338

$273$629$885$285

# Transactions

Aventura

1 3

Golden Beach

0 4

BalHarbour

1 3

Surfside

3 2

0 7

2010

2011

2012

2013

2014

20 8

15 16

22 11

31 14

25 7

Aventura

Golden Beach

Bal Harbour

Surfside


$881,429 7

$9,400,000 2

N/A 0

$3,550,000 3

no transactions N/A

no transactions N/A

Located on a barrier island separating the

Intracoastal Waterway from the ocean, the

high-end Golden Beach community offers one

of the only “on the sand”, single-family home

markets in Miami-Dade County, taking the #1

spot in Miami’s North End Luxury Spotlight by

a wide margin at an average $9,400,000. Bal

Harbour had no transactions during 2014.

Omissions due to low transaction numbers or absence of market: Sunny Isles * The top 50% of each market, by average price.


Aventura is this section’s only market within the Miami mainland. Others are located on barrier islands.


Luxury Spotlight

Non-Waterfront Condos

2010 2011 2012 2013 2014

13,482 653

$159


9,785 1,007$157

8,342 1,392$174

12,017 1,978$196

17,7512,093$212

PPSF Trendline b

Waterfront Condos

2010 2011 2012 2013 2014

22,968 959

$356


18,5581,323$391

15,756 1,737$407

16,946 2,078$441

20,607 1,895$503

PPSF Trendline b

Miami-DadeCondos

General Statistics

The Miami-Dade condo market is as diverse

and mature as its single-family market. Its

recovery has been aided by an influx of foreign

buyers in nearly every submarket throughout

the county over the past four years. The pricing

recovery has been very dramatic and, despite

some observers’ claims that the market would

take a decade or more to recover from the

Great Recession (2007–2009), by late 2011,

new development was underway again. With

the exception of New York City, it is the most

active construction market in the U.S. today.

The market for condominiums in this cycle has

been geared almost exclusively to the luxury

($1M–$5M) and ultra-luxury ($10M+) buyer

pool. Without exception, Miami Beach’s South

Beach (with South of Fifth) and Miami’s North

End submarkets are the strongest in pricing

and pre-construction availability. In terms of

amenities, there is nothing more prized than

an oceanfront unit, and Miami Beach and the

North End are the two submarkets that can

deliver unobstructed, ocean views.

In terms of non-oceanfront product, Downtown

Miami is one of the largest markets for new

development. The condo market in Miami is

strongly linked to foreign demand, so changes

in the currency exchange rates and emerging

weakness in the global economy will be key

factors that may affect the demand side of

the condo market in 2015. Conversely, Miami

brokers convey a sense of optimism by noting

that when foreign economies perform poorly,

Miami tends to attract more capital, not less.

The biggest trends affecting Miami’s condo

supply are the rapid land appreciation and

the recent spikes in construction cost. These

two factors will likely slow new development

this year, which signals a potentially healthy

correction for a market that has experienced

feverish building for the past three years.

Miami: A Thriving City

“Top U.S. Market for All-Cash Transactions” - Bloomberg.com (July 2014)

Port of Miami: #1 Cruise Terminal in the World

New Construction Units: 15,000+(Over 60% Sold)

MIA: Leading Intl. Airport with 40M Annual Travelers

$5 Billion of Planned Development in

Downtown Miami only


Luxury Spotlight




2010 2011 2012 2013 2014

$1,6

73,0

00

$1,9

06,0

00

$1,6

99,0

00

$1,7

05,0

00

$1,8

27,0

00

h

139

h

4,588

h

185

h

3,866

# Sold

# For Sale

h

361

h

3,924

h

355

h

4,618

h

227

h

3,822

2010 2011 2012 2013 2014

$6,5

38,0

00

$6,6

34,0

00

$6,0

42,0

00

$6,0

80,0

00

$6,3

71,0

00h

3

h

279

h

6

h

275

# Sold

# For Sale

h

6

h

414

h

15

h

543

h

6

h

353

2010 2011 2012 2013 2014

N/A

$11,

500,

000

$27,

000,

000

$12,

050,

000

$10,

975,

000

h

0

h

83

h

1

h

73

# Sold

# For Sale

h

2

h

143

h

2

h

199

h

1

h

103

Asia | 900 Brickell Key Boulevard, #3401, Brickell Key

Avg.

Hom

e Pr

ice

Tren

dlin

eh Av

g. H

ome

Pric

e Tr

endl

ine

h Avg.

Hom

e Pr

ice

Tren

dlin

eh


Miami | South EndCondo Market Index

Miami’s South End condo market is comprised of Coconut Grove, Coral

Gables and Deering Bay, all of which lay immediately south of the

Greater Downtown area. These markets are characterized by a more

suburban feel and are near the University of Miami, Baptist Hospital

system and the commercial centers of Dadeland and Coral Gables.

Coconut Grove is one of the oldest and most historic neighborhoods in

Miami-Dade County, dating back to 1825. More recently, the area has

been enjoying renewed attention and redevelopment of older buildings

into boutique townhouse and condo developments. The Grove is also

notable for its variety of local restaurants and bars providing great

walkability, in addition to the Bayshore waterfront and Peacock Park.

Pricing in this area has been steadily increasing for the last three years.

Downtown | Miami Beach | Ft. Lauderdale

-0+

Coral Gables | Non-Waterfront

% of Sample Traded

4%

6%

9%

12%

13%

Avg. Sales Price Avg. S.F. Avg. Price/S.F. Year/Year % Changeon Price/Square Foot

g 30.1%

g 1.9%

h 29.4%

g 7.0%

$324

$226

$222

$348

$288

1,200

1,147

1,098

1,135

1,096$315,267

$243,964

$259,695

$388,602

$395,530

2010

2011

2012

2013

2014

Coral Gables is the location of the University of Miami and Miracle

Mile, both of which drive the pricing and desirability of this submarket.

Coral Gables, also known as the City Beautiful, is mostly comprised of

single-family homes, which gives it a suburban atmosphere. The wide

streets with gigantic trees lining the avenues add to this feeling. Coral

Gables is also known for having a strong and stable educational base

in comparison to other areas of Miami-Dade County.

Coconut Grove | Non-Waterfront

% of Sample Traded

5%

9%

10%

15%

12%


g 7.8%

g 22.9%

h 35.4%

g 17.9%

$563

$519

$401

$686

$543

1,907

1,853

1,546

1,630

2,547$1,382,192

$619,650

$962,723

$1,074,381

$1,118,639

2010

2011

2012

2013

2014

-0+

Omissions due to low transaction numbers or absence of market: Pinecrest, Palmetto Bay, CocoPlum, Gables Estates, Snapper Creek Lakes, P. Davis & High Pines and Old Cutler Bay


-0+2010

2011

2012

2013

2014

Deering Bay | Waterfront

% of Sample Traded

5%

2%

8%

12%

6%


h 5.9%

h 36.1%

g 35.0%

g 19.1%

$324

$343

$467

$401

$304

3,303

3,216

2,353

3,378

3,046$924,667

$1,100,000

$1,104,386

$1,071,458

$1,353,857

cond

omin

ium

s

Deering Bay is an exclusive area located within Coral Gables. It is known

for its country club ambiance and manicured landscaping. Deering

Bay’s condos are much larger than their counterparts in Coconut Grove

and Coral Gables, which may be a reason for the more moderate pricing

on a per-square-foot basis. All of the condos in Deering Bay are located

directly on the Intracoastal Waterway.

Grovenor House | 2627 S. Bayshore Drive, #3002, Coconut Grove

Condo submarkets do not contain a Luxury Spotlight, since the product sample is already representative of the high-end market. For details on methodology, please refer to page 5.


BrickellCondo Market Index

Miami’s South End

Downtown | Midtown | Miami’s North End

-0+2010

2011

2012

2013

2014

Brickell | Waterfront

% of Sample Traded

26%

27%

8%

12%

8%


g 6.5%

g 16.2%

g 7.4%

g 8.7%

$549

$513

$430

$602

$398

1,405

1,556

1,177

1,471

1,153$459,376

$506,243

$798,965

$771,402

$884,786

-0+2010

2011

2012

2013

2014

Brickell | Non-Waterfront

% of Sample Traded

10%

10%

18%

14%

8%


g 18.7%

g 5.1%

g 4.0%

g 3.6%

$422

$343

$326

$438

$313

981

994

963

989

921$287,943

$313,513

$341,253

$414,273

$432,750

“Brickell was solely known as a banking hub up until 2008. Now, it is known as the home of

Brickellites — urban professionals who live, work and play in their neighborhood. Residents

have the highest income and education levels in the downtown Miami area and tourists

now have reason to explore Miami outside of the beach. With the addition of Brickell City

Centre, Brickell is becoming the epicenter of Miami.”

– Shelia Gasson, ONE Sotheby’s International Realty

Brickell has found itself becoming the cultural and social hub of

Downtown Miami, as more young professionals opt for this submarket

over Miami Beach. The shift has been rapid and reflects the amount of

nightlife and restaurants available to choose from within the Brickell

area. While pricing has been increasing at a rapid pace, it is still a

bargain compared to Miami Beach. Brickell is also home to the largest

amount of current development, including Brickell City Centre, which

will bring even more retail, residential and office density to the area.

Brickell is usually delineated as running from I-95 on the west to the

bay on the east, and the Miami River on the north to the Rickenbacker

Causeway on the south. Also included in the Brickell market analysis

is Brickell Key, which is a small island only accessible from Brickell

Avenue. Brickell Key has a number of condominium towers and some

Class-A office and retail space.

Omissions due to low transaction numbers or absence of market: None


-0+2010

2011

2012

2013

2014

Brickell Key | Waterfront

% of Sample Traded

6%

6%

10%

13%

10%


g 14.3%

g 3.0%

g 11.1%

g 2.4%

$580

$498

$482

$595

$429

1,680

1,629

1,607

1,676

1,682$721,518

$775,255

$810,305

$974,464

$996,759

cond

omin

ium

s

Brickell’s waterfront condo towers have been appreciating at a rate of

almost 10% on an annual basis since the beginning of the recovery from

the economic crisis in 2010. Today, waterfront condo units in Brickell

have averaged over $600 per square foot. The non-waterfront towers

have appreciated at a similar, albeit slightly slower, pace over this time

and are currently priced just under $450 per square foot. Brickell Key,

probably due to the exclusive nature of its location and water frontages,

commands pricing which is comparable to Brickell’s waterfront condos

despite the island’s older buildings. An interesting fact is the size of

the units in this area. Brickell Key’s units are the largest in the market,

followed by Brickell waterfront condos. However, the non-waterfront

condos in Brickell are significantly smaller (about 33%).

Bristol Tower | 2127 Brickell Avenue, #703, Brickell



Downtown MiamiCondo Market Index

Brickell | Miami’s South End

Midtown | Miami’s North End

-0+2010

2011

2012

2013

2014

Downtown Miami | Waterfront

% of Sample Traded

11%

17%

11%

12%

11%


g 5.9%

g 5.8%

g 6.8%

g 12.1%

$455

$428

$403

$518

$376

1,139

1,224

1,177

1,134

1,204$452,547

$474,699

$523,679

$518,318

$586,810

-0+2010

2011

2012

2013

2014

Downtown Miami | Non-Waterfront

% of Sample Traded

8%

10%

14%

20%

10%


h 1.7%

g 20.8%

g 7.6%

g 4.8%

$446

$454

$359

$468

$332

1,092

1,180

1,423

1,197

1,469$487,648

$511,621

$535,433

$486,804

$560,377

The Downtown submarket has been known for its high concentration of

office space, which is exemplified by its other name, the CBD (Central

Business District). Downtown Miami is generally delineated by the

Miami River to the south, NE 17 Street to the north and I-95 and the

Florida East Coast Railway to the west with Biscayne Bay to the east.

Recently, the CBD has seen an uptick in the level of residential and

mixed-use development activity. Two of the major drivers for the future

of Downtown Miami are the pending developments of the All Aboard

Florida transit project, which will include a central station in Downtown

and the Miami World Center project, which will comprise over 700,000

square feet of retail, residential and office space. With many young

professionals being priced out of the Miami Beach rental market, the

Downtown Miami submarkets have become attractive alternatives.

The area also includes the Arts and Entertainment (A&E) district of

Downtown Miami, which is home to the Pérez Art Museum (PAMM) and

the future Patricia and Phillip Frost Museum of Science, as well as the

Adrienne Arsht Center for the Performing Arts.



cond

omin

ium

s

As for pricing, Downtown Miami has largely

mirrored the appreciation rates experienced

in the Brickell submarket, with waterfront

properties achieving almost $520 per square

foot and the non-waterfront properties not

far behind at $468 per square foot. Pricing is

comparable to Brickell but includes a greater

variety of product types, from more affordable

to ultra-luxury. As was previously mentioned,

the Downtown Miami submarket includes

the Arts and Entertainment District, home to

several luxury projects. With the increasing

profile of the neighboring Edgewater/Midtown

submarket and the new development success

in Brickell, the CBD and A&E submarkets are

likely to experience a beneficial spill-over of

successful infill projects.

Two key factors inhibiting future inventory

entering the pipeline are quickly-escalating

land prices and spiking construction costs.

These factors are expected to slow the new

construction in the coming year and may stall

some of the secondary CBD projects in 2015.

New Cultural Development

Microsoft Innovation CenterFirst MIC to be set in the U.S.


Miami World Center$2 Billion, Ten-Block Mega-Project

Frost Museum of ScienceDesigned by Grimshaw Architects

Pérez Art Museum MiamiDesigned by Herzog & de Meuron

Downtown Miami


Edgewater & MidtownCondo Market Index

Downtown | Brickell | Miami’s South End


-0+2010

2011

2012

2013

2014

Edgewater | Waterfront

% of Sample Traded

1%

1%

2%

3%

1%


h 5.9%

h 36.1%

g 68.3%

g 19.1%

$324

$343

$467

$401

$148

3,303

3,216

2,353

3,378

1,128$167,000

$1,100,000

$1,104,386

$1,071,458

$1,353,857

-0+2010

2011

2012

2013

2014

Edgewater | Non-Waterfront

% of Sample Traded

8%

9%

10%

17%

11%


g 18.3%

h 21.8%

g 27.0%

g 3.2%

$333

$272

$331

$344

$242

1,156

1,142

1,100

1,106

1,152$278,485

$364,299

$310,387

$384,652

$379,903

The Edgewater/Midtown submarket is comprised of East Edgewater

and the Midtown district just west of Biscayne Boulevard and West

Edgewater. Edgewater is located on the eastern strip of coastal land

immediately north of Downtown Miami (aka the CBD), with Midtown

found on the west side of the Florida East Coast Railway.

Edgewater had been overlooked for over a decade leading up to 2012,

when Jorge Pérez of the Related Group announced that he would be

developing a four-tower residential/resort project within the Edgewater

submarket known as the Paraiso Bay master development. Related’s

plan called for about 1,400 residential units, luxury amenities and an

elaborate, bayfront walkway within the two-acre development site.

Paraiso Bay was just the first of various residential and mixed-use

developments to be announced in the neighborhood later on. There

are now over 1,500 condo units currently under construction with more

than 2,000 more units in the planning pipeline. Much of the charm and

appeal of the Biscayne Corridor area is the easy accessibility to the

Miami CBD, the interstate highways and Miami Beach. Additionally, the

area is significantly less congested than the Central Business District

and condo residences are typically much larger and more affordable

than they are in comparable developments elsewhere in the Greater

Downtown Miami market.



-0+2010

2011

2012

2013

2014

Midtown | Non-Waterfront

% of Sample Traded

3%

4%

17%

23%

23%


g 17.1%

h 3.0%

g 37.5%

h 0.5%

$385

$319

$329

$383

$206

1,089

1,072

1,172

1,125

1,014$208,328

$385,160

$342,413

$419,365

$430,701

cond

omin

ium

s

Paramount Bay | 2020 N. Bayshore Drive, #2710, Edgewater


Midtown has seen a resurgence of development interest following the

creation of the Shops at Midtown and the Midtown condo projects,

developed during the last cycle (2003–2007). The area is seen as

an alternative to the density of Brickell and CBD for entertainment

and living, and offers lifestyle proximity to the edgy and very trendy

Wynwood Art District and up-and-coming neighbor, Design District.

Edgewater and Midtown are trading at a significant discount versus

other Downtown Miami area submarkets. Waterfront properties can

be purchased for about $400 per square foot and non-waterfront for

just $344 per square foot, with Midtown priced somewhere in between.

A project creating key linkage between the Design District, Midtown and

Edgewater at a pedestrian level would be ideal for this growing market.


Miami BeachCondo Market Index

Miami’s South End


-0+2010

2011

2012

2013

2014

South Beach | Waterfront

% of Sample Traded

8%

10%

13%

14%

12%


g 21.8%

h 9.3%

g 11.2%

g 11.2%

$1,204

$942

$1,029

$1,355

$914

1,967

2,005

1,964

1,960

2,170$1,982,480

$2,021,046

$1,887,818

$2,368,176

$2,655,743

-0+2010

2011

2012

2013

2014

Mid Beach | Waterfront

% of Sample Traded

9%

10%

8%

11%

11%


g 12.7%

g 19.9%

h 15.4%

g 12.4%

$782

$683

$547

$893

$632

1,436

1,404

1,422

1,334

1,425$900,175

$778,117

$958,858

$1,122,798

$1,191,585

Miami Beach has long been the iconic image of Miami for tourists and

non-locals. The barrier island is broken into four different submarkets:

South Beach, Mid Beach, North Beach and North Bay Village, which is

really comprised of two islands west of Mid Beach. Downtown

South of Fifth Spotlight: 2014 Statistics


Apogee Continuum South Continuum North Murano Portofino Murano Grande Icon South BeachPortofino Tower

Transactions b 1 Avg. Price b $7.24M

Avg. PPSF b $2,333g 0.6% since 2013g 81.4% since 2010














-0+2010

2011

2012

2013

2014

North Beach | Waterfront

% of Sample Traded

7%

12%

18%

15%

9%


g 19.4%

g 8.3%

g 11.7%

g 19.1%

$862

$695

$638

$1,066

$563

1,565

1,685

1,584

1,436

1,530$860,658

$1,009,603

$1,170,994

$1,349,918

$1,530,266

-0+2010

2011

2012

2013

2014

North Bay Village | Waterfront

% of Sample Traded

7%

10%

10%

12%

19%


g 17.8%

g 11.9%

h 3.1%

g 17.7%

$227

$186

$164

$275

$169

1,264

1,287

1,275

1,249

1,270$214,784

$209,133

$239,580

$286,235

$343,582

As for the condo market, Mid Beach and North Beach are slightly less

densely developed than South Beach, as they also feature a single-family

home market. Mid Beach is home to two of the most historic and well-

known resorts in Miami Beach, the Eden Roc and the Fontainebleau.

Pricing on Miami Beach is driven largely by the level of “exclusivity”

perceived by buyers in each market. For this reason, South Beach has

always commanded the highest pricing per square foot in almost all of

Miami-Dade County, with Mid Beach and North Beach right behind it.

North Bay Village, by contrast, is priced at a significant discount, but

has been experiencing high appreciation over the past years; a growth

that is projected to continue.

“Overall, the Miami Beach condo and single-family markets were driven

by lack of inventory. For example, in the high-end waterfront home

sector, the average price per square foot jumped 16% from 2013 to

2014. Days on market (DOM) dropped from 241 in 2013 to 193 in 2014.”

– Kevin Tomlinson, ONE Sotheby’s International Realty

cond

omin

ium

s


South Beach is known for its high-end restaurants, condo towers and

breathtaking views of Biscayne Bay, Downtown Miami and the Atlantic

Ocean. Since the 1990s, this area has been the entertainment hotspot

for tourists and locals alike.

The northern section of South Beach includes Lincoln Road and is

considered by some to be the cultural center of Miami Beach. There

are countless boutique hotels, resorts and condo towers lining the

beaches on the east side of Collins Avenue. This area also contains

the New World Symphony, the United States’ only full-time orchestral

academy. The southern section of South Beach offers the exclusive

SoFi (South of Fifth) pocket, a small concentration of luxury condo

developments. South of Fifth is considered the most high-end condo

market in Miami Beach, providing residents with a quieter lifestyle than

that of the northern South Beach section. South of Fifth is also home to

South Pointe Park, a resident favorite featuring the new, 450-foot South

Pointe Pier, ample walkways and stunning views of Fisher Island and

the cruise ships leaving Miami through Government Cut.


The IslandsCondo Market Index

-0+2010

2011

2012

2013

2014

Key Biscayne | Waterfront

% of Sample Traded

3%

7%

7%

11%

7%


g 25.8%

g 10.6%

h 5.0%

h 11.1%

$887

$659

$589

$799

$618

2,388

2,375

2,496

2,050

2,927$1,809,554

$1,469,158

$1,565,008

$2,119,043

$1,637,652

-0+2010

2011

2012

2013

2014

Bay Harbor Islands | Waterfront

% of Sample Traded

5%

10%

6%

9%

13%


g 37.0%

g 11.7%

g 22.4%

h 23.5%

$224

$141

$125

$181

$97

1,412

1,515

1,395

1,421

1,213$117,286

$173,995

$213,857

$316,417

$257,833

This submarket is comprised of three islands in Miami-Dade County, which

are typically not included in the Miami Beach submarkets. These islands are

Key Biscayne, accessible only by the Rickenbacker Causeway; Bay Harbor

Islands, which are just west of Bal Harbour on the north end of Miami

Beach; and Fisher Island, which is accessible only by ferry (or helicopter). Miami’s South End

Ft. Lauderdale | Miami’s North End

Downtown

Key Biscayne is mostly beaches, nature reserves and parks, but the

Village of Key Biscayne has long been considered one of the most

exclusive real estate markets in South Florida. Pricing was consistent

even during the financial crisis. Today, pricing reflects the fact that there

is little to no space on Key Biscayne for development or redevelopment,

with remaining sites regulated and politically difficult to develop.

Condos on the Bay Harbor Islands trade at a steep discount compared

to Key Biscayne and Fisher Island. 2014 saw a significant downturn

in pricing, following a big jump between 2012 and 2013. This is likely

attributed to the significant level of redevelopment occurring on the

Bay Harbor Islands on a small scale. Typically, these new projects are

boutique developments with less than 20 units.

Omissions due to low transaction numbers or absence of market: Palm/Hibiscus/Star Islands, Venetian Islands, Sunset Islands, La Gorce Island, Indian Creek and Normandy Isles


Fisher Island is the epitome of luxury, as the island is inaccessible by car.

These condos cater solely to the extremely wealthy and vacationers.

Pricing on Fisher Island is well over $1,000 per square foot despite the

units being some of the largest in Miami-Dade County. Fisher Island

has recently been the subject of some litigation as developers push for

additional construction in the tiny island.

-0+2010

2011

2012

2013

2014

Fisher Island | Waterfront

% of Sample Traded

5%

7%

8%

10%

6%


g 1.1%

g 11.1%

g 12.6%

g 18.8%

$897

$887

$789

$1,105

$690

4,028

4,254

4,520

4,910

4,468$3,081,500

$3,568,014

$3,775,000

$3,612,727

$5,423,750

cond

omin

ium

s

The first new condominium tower is under construction on Fisher Island,

and is likely to be delivered in early 2016. Fisher Island remains one of

the jewels of Miami, offering golf, tennis, marina, a spa and a private

beach along with unbeatable privacy. This exclusivity comes with a

higher cost of operation, but the value of a Fisher Island residence is

one of the absolute highest in Miami.


Oceanside | 7463 Fisher Island Drive, #7463, Fisher Island


Miami | North EndCondo Market Index


Broward’s South End | Ft. Lauderdale

-0+2010

2011

2012

2013

2014

Aventura | Waterfront

% of Sample Traded

7%

13%

12%

11%

10%


g 20.2%

g 6.1%

g 9.9%

g 2.2%

$397

$316

$297

$405

$267

2,788

2,741

2,513

2,522

2,764$739,169

$746,419

$867,531

$1,105,983

$1,022,262

-0+2010

2011

2012

2013

2014

Bal Harbour | Waterfront

% of Sample Traded

3%

6%

18%

13%

25%


g 1.3%

g 31.2%

g 27.4%

g 43.7%

$1,362

$1,344

$925

$2,419

$672

2,433

2,586

2,701

1,402

2,718$1,825,675

$2,499,032

$3,475,337

$3,312,535

$3,391,048

The North End of Miami includes the northern-most tip of Miami Beach

(Surfside and Bal Harbour) as well as Aventura and Sunny Isles, which

sit on the border with Broward County. These areas are known for their

affluence, accessibility to both Miami’s and Broward’s beaches and high

concentration of European residents.

Referred to as “Turnberry” until 1995, Aventura is home to the Aventura

Mall (the 5th largest in the nation) and several retail strip centers, as

well as a number of office parks. The area was primarily developed

during the 1980s and 1990s and achieved critical mass by 2000. With

accessibility to I-95 and Miami Beach, Aventura is a highly desirable

location with condo towers situated right on the Intracoastal canals.

Bal Harbour has long been considered the luxury epicenter for Miami-

Dade County. The Bal Harbour Mall is located across the street from

most of Bal Harbour’s condo towers, all of which sit on private beaches

facing the Atlantic Ocean. Bal Harbour has both very high pricing on

a per-square-foot basis and above-average-sizing of condo units. The

area has seen sky-rocketing growth since 2010.

Omissions due to low transaction numbers or absence of market: Golden Beach


cond

omin

ium

s

-0+2010

2011

2012

2013

2014

Surfside | Waterfront

% of Sample Traded

9%

6%

10%

10%

8%


h 10.7%

g 22.3%

h 14.5%

g 38.9%

$395

$437

$340

$647

$389

1,385

1,711

1,575

1,692

1,497$582,619

$535,422

$748,474

$547,207

$1,094,621

-0+2010

2011

2012

2013

2014

Sunny Isles | Waterfront

# Transactions *

10%

11%

11%

12%

9%


g 13.8%

g 8.7%

g 8.2%

g 15.7%

$830

$716

$653

$985

$600

1,727

1,675

1,909

1,815

1,980$1,187,642

$1,247,431

$1,199,104

$1,433,762

$1,786,935

Surfside is located just south of Bal Harbour on the Miami

Beach barrier island. Surfside is aptly named as it has the

appearance and feel of a quiet surf town one might find

along the California coast. However, this area has recently

become the site of some of the most notable ultra-luxury

developments, including the Fendi Chateau Surfside, the

first condo tower with Fendi branding.

“Luxury condos, new construction and, on a global scale, well-

priced real estate are factors in the driving force behind the

success of Sunny Isles Beach. Pre-construction condos range

from $1,300 to $2,500 per square foot while premier luxury

condo towers may still be purchased from $800 to $1,300 per

square foot. The Atlantic Ocean and resident amenities offer

an all-inclusive lifestyle central to both FTL and MIA airports

with an additional draw on its proximity to great schools, golf,

restaurants, retail and nightlife.”

– Ashton Coleman, ONE Sotheby’s International Realty


Jade Ocean | 17121 Collins Avenue, #PH4408, Sunny Isles Beach


Luxury SpotlightGeneral Statistics

Unlike its southern neighbor Miami, Broward

County tends to represent a more traditional,

domestic buyer pool and, as a generalization,

the wealth belt in Broward tends to concentrate

along the Coast, tending to be home-grown

with far less foreign (non US-based) influence.

The county serves as the bedroom community

to large employers who desire a South Florida

presence, but demand a lower cost of living

and more suburban development pattern.

Over the past few years, there has been a silent

migration northward as Miami homeowners

discover the cost-of-living gap between Miami

and Broward. This will probably continue, as

housing costs approach 30% to 40% discounts

in Broward’s submarkets versus comparable

alternatives in Miami-Dade. This migration

is also fueled by the fact that Miami’s road

infrastructure turns increasingly burdensome

as higher density developments are creating

unsustainable increases in traffic levels and

commute times. Today, locations in southwest

Broward with connectivity to I-75 are actually

closer in travel time to employment centers

than some locations in South Miami.

The luxury markets in Broward are comparable

in terms of average home pricing in the luxury

category ($1M–$5M and $5M–$10M), yet

with fewer transactions than in Miami-Dade.

There are very few ultra-luxury $10M+ trades

in Broward. This is due to a combination of the

domestic buyer pool and the fact that Broward

does not possess a large bayfront market or

multiple islands within its boundary.

Another significant trend is a slow-moving

single-family market. The U.S. is experiencing

a stagnation of the new housing market and

Broward is no exception. While this affects the

sub-luxury markets, all boats lift in the rising

tide of the resale market, which will probably

be the year’s highlight in Broward County.

BrowardSingle-Family Homes

Waterfront, Single-Family Homes

Non-Waterfront, Single-Family Homes

Ft. Lauderdale: Through a Global Lense

2010 2011 2012 2013 2014

10,339 1,109$137

8,890 1,293$130

7,003 1,687$137

7,7312,306$130

11,438 2,608$157


PPSF Trendline b

2010 2011 2012 2013 2014

5,636 513

$197

4,957560

$198

4,271 721

$189

4,317 955

$213

5,627 958

$230


PPSF Trendline b

“High-End Property in Fort Lauderdale Outperforms Rest of the Market” - Financial Times (September 2014)

“2014 Ft. Lauderdale Boat Show Attendance Highest Since 2006” - Sun Sentinel

“Ft. Lauderdale is in the Midst of a Comeback” - Dow Jones Business Review

“Ft. Lauderdale’s Shrinking Acreage Increasingly High End”

- Ocean Drive Magazine

“Downtown Ft. Lauderdale Among Top 10 Downtowns in U.S.”

- Livability.com (March 2014)





2010 2011 2012 2013 2014

$1,8

73,0

00

$1,8

05,0

00

$1,6

09,0

00

$1,6

44,0

00

$1,8

35,0

00

h

57

h

2,376

h

72

h

2,098

# Sold

# For Sale

h

135

h

2,209

h

137

h

2,600

h

82

h

2,029

2010 2011 2012 2013 2014

$7,1

50,0

00

$6,6

80,0

00

$6,2

00,0

00

$6,1

00,0

00

$6,5

80,0

00h

7

h

244

h

9

h

188

# Sold

# For Sale

h

12

h

210

h

10

h

219

h

11

h

201

2010 2011 2012 2013 2014

$10,

800,

000

N/A

$10,

000,

000

$13,

000,

000

$15,

500,

000

h

1

h

42

h

0

h

40

# Sold

# For Sale

h

2

h

60

h

4

h

65

h

1

h

53

Luxury Spotlight

Avg.

Hom

e Pr

ice

Tren

dlin

eh Av

g. H

ome

Pric

e Tr

endl

ine

h Avg.

Hom

e Pr

ice

Tren

dlin

eh

1301 E. Lake Drive, Fort Lauderdale



The number of single-family home sales in

Hollywood Beach averages about four times

as many as the Hallandale Beach market

sales, although with slightly lower average

pricing. Hollywood Beach ended the five-year

period at $219 per square foot, up 10.6% from

2013 levels and 33% over 2010 levels. The

number of transactions fluctuates slightly

between 84 and 114 sales per year.

Hallandale Beach ended the 2014 period at

an average of $267 per square foot, up 8.5%

from 2013 levels and 44% over 2010.

Hallandale Beach: g 8.5%

Hollywood Beach: g 10.6%

Hallandale Beach

Hollywood Beach


# Transactions

Hollywood Beach

Hallandale Beach

2010

2011

2012

2013

2014

106 27

84 14

114 25

96 29

84 23

Broward | South EndNon-Waterfront, Single-Family Homes

$165$186

Miami

Ft. Lauderdale | Broward’s North End

Western Suburbs

$219$267

$170$208

$198$246

$300$200$100$0 $250$150$50

$253$226

Hollywood Beach

Hallandale Beach


$635,108 27

$1,105,000 10

* The top 50% of each market, by average price.Omissions due to low transaction numbers or absence of market: None


The top half of the Hallandale Beach market

outperforms the top half of the Hollywood

Beach market by almost double the average

home price. Hollywood Beach, however, is still

a more active market at 27 sales in 2014.

As Broward County’s South End, Hallandale

and Hollywood are ideal locations with easy

access to Fort Lauderdale and Miami.

Hollywood Highlights:

- Seven miles of pristine beaches- Lively, 2.5-mile boardwalk- Abundant parks and coral reefs- Multi-million-dollar estates

Hallandale Highlights:

- Premiere parks and race tracks- Vibrant, beachfront community- Retail, dining and water sports- World-class, waterfront homes


The Hallandale Beach neighborhood has a

nearly equal number of waterfront and non-

waterfront transactions, with much stronger

average prices than Hollywood Beach. Both

neighborhoods increased 33% to 35% over

2010 levels, with Hallandale Beach ending

the period at an average of $387 per square

foot, as compared to Hollywood Beach at an

average of $338 per square foot.

Overall, waterfront homes traded at 40% to

80% greater average pricing per square foot

than its non-waterfront counterparts.


sing

le-f

amily

hom

es

Broward | South EndWaterfront, Single-Family Homes

$253$286

$338$387

$304$298

$400$200$150$100$50$0 $250 $300 $350

Miami


Western SuburbsHallandale Beach

Hollywood Beach


Hallandale Beach: g 5.7%

Hollywood Beach: g 22.0%

# Transactions

Hollywood Beach

Hallandale Beach

2010

2011

2012

2013

2014

9 28

12 22

12 25

21 35

14 27

$185$355

$277$366

Hollywood Beach

Hallandale Beach


$1,412,400 8

$1,909,000 14

* The top 50% of each market, by average price.Omissions due to low transaction numbers or absence of market: None


For luxury, waterfront homes, Hallandale Beach

overpowers Hollywood Beach in terms of both

average pricing and number of transactions.

Both areas are experiencing an increase in

new construction with developments such as

Beachwalk in Hallandale and Apogee Beach

in Hollywood, which are projected to enhance

their respective real estate markets.

Hollywood Beach

Hallandale Beach



In 2014, all analyzed Greater Fort Lauderdale

coastal submarkets east of I-95 reached

the highest average price per square foot

in the five years presented. Other than Las

Olas Isles and Fort Lauderdale Beach, these

luxury submarkets are all trading in the low

to mid $300-per-square-foot range for non-

waterfront homes. In most of these areas,

averages are considered reliable indicators

of market trends due to their relatively strong

transaction numbers. These submarkets will

likely experience strong gains in 2015, as the

non-waterfront product appears underpriced

relative to counterparts in Miami-Dade County.

Broward County emerged from the recession

12 to 18 months slower than Miami-Dade did.

Therefore, we expect 2015 to bring continued

strong performance within the submarkets.

With the only exception of the Victoria Park &

Colee Hammock market, transaction volume

was sustained or greater than it was during

2013, indicating probable continued upward

momentum in pricing for single-family homes.

Victoria Park & Colee Hammock: g 9.8%

Las Olas Isles: g 16.9%

Harbor Beach: g 16.4%

Rio Vista: g 8.3%

Ft. Lauderdale Beach: g 3.0%

Harbor Beach

Las Olas Isles Ft. Lauderdale Beach

Rio Vista

Victoria Park & Colee Hammock


East Fort LauderdaleNon-Waterfront, Single-Family Homes

$500$400$300$200$100$0

$457$312$415$341$326

$391$268$403$315$297

$295$253$327$273$259

$308$274$284$259$228

$303$211$234$256$234

Omissions due to low transaction numbers or absence of market: Sunrise Key

Broward’s South End | Miami

Broward’s North End Western Suburbs


sing

le-f

amily

hom

es

# Transactions

5 10 22 68

Las Olas Isles

6 11 27 52

HarborBeach

7 11 41 80

Ft. Laud.Beach

7 12 41 120

RioVista

12 14 40 98

Victoria P.& Colee H.

2010

2011

2012

2013

2014

4

5

7

1

5

Las Olas Isles and Fort Lauderdale Beach presented the highest average price

per square foot consistently from 2011 to 2014. This alludes to great value in the

non-waterfront, single-family home segment of a primarily waterfront market,

something to consider when making an investment on a Fort Lauderdale home.

Rio Vista, an old-fashioned neighborhood with approximately 1,000 homes is

often compared to Miami’s Coral Gables for its Mediterranean Revival style and

old-growth trees that keep residents cool even in the dead of summer. Rio Vista

comes in third for highest average price per square foot in 2014, at $341.

The East Fort Lauderdale area’s non-waterfront, single-family segment is one of

Broward’s best-performing markets today, as it continues to draw demand due

to its proximity to the water and Fort Lauderdale’s many amenities.

Las Olas Isles

Harbor Beach

Ft. Lauderdale Beach

Rio Vista

Victoria P. & Colee H.


$2,045,000 2

$1,459,286 7

$1,988,500 5

$1,060,056 18

$789,271 38



2612 Aurelia Place, Fort Lauderdale

Las Olas Isles is East Fort Lauderdale’s leader when it comes to high-end, non-

waterfront residences. Its low number of transactions is directly related to the

size of the market, as Las Olas Isles is primarily a waterfront neighborhood, with

just a few non-waterfront, single-family homes trading each year. It fans out

along both sides of a stretch on East Las Olas Boulevard from the Intracoastal

to its western canal, separating the historic thoroughfare’s commercial and

residential districts beginning at South Gordon Road.


East Fort LauderdaleWaterfront, Single-Family Homes

$567

$539$682$642$552$413

$490

$550$835$634$551$460

$307

$463$534$200$440$514

$318

$428$491$733$377$557

$485

$496$472$1,000$441$492



$1,200$800$600$400$200$0 $1,000

Sunrise Key



Sunrise Key: g 15.7%

Las Olas Isles: h 2.0%

Harbor Beach: h 18.3%

Rio Vista: g 0.2%

Ft. Lauderdale Beach: g 1.3%

Harbor Beach

Las Olas Isles Ft. Lauderdale Beach

Rio Vista

Victoria Park & Colee Hammock


Victoria Park & Colee Hammock: h 10.2%

The East Fort Lauderdale single-family home

market includes the neighborhoods of Las Olas

Isles, Harbor Beach, Fort Lauderdale Beach,

Rio Vista, Victoria Park & Colee Hammock and

Sunrise Key. This market area is located east

of US-1 and spans from Harbor Inlet to the

south and Sunrise Boulevard to the north.

East Fort Lauderdale’s waterfront market is

usually in high demand, especially by boating

enthusiasts and those looking for large lots

with extraordinary views. Although statistics

are somewhat volatile due to low transaction

numbers in some areas, prices leveled off in

2014 and most neighborhood averages are

within $500 to $700 per square foot.

In 2014, Harbor Beach pricing closed 18.3%

lower than it did in 2013, although it still took

the top spot in the East Fort Lauderdale area

at $682 per square foot — its second highest

average in five years.


1600 Ponce de Leon Drive, Fort Lauderdale

sing

le-f

amily

hom

es

# Transactions

13 4 11 1

Las Olas Isles

15 2 14 8

HarborBeach

13 2 9 10

Ft. Laud.Beach

17 5 21 7

RioVista

19 7 19 3

Victoria P.& Colee H.

2010

2011

2012

2013

2014

52

69

66

75

Sunrise Key

3

3

6

2

659



“Harbor Beach will always remain one of Fort Lauderdale’s most desirable

neighborhoods. Large lots, wide canals and ocean access along with a

private beach club offer residents an unparalleled location to call home.”

– Brian Hero, ONE Sotheby’s International Realty

In terms of percentage increase from 2013 to 2014, Sunrise Key tops

the list at 15.7%, closing the year at an average $567 per square foot.

Originally developed in the 1950’s, Sunrise Key, a community with

well under 100 homes, saw some redevelopment in the late 1990s

and into this decade. A good amount of the original homes have been

redesigned and updated, which has likely been an important factor in

its value increase over the last few years.

Las Olas Isles

Harbor Beach

Ft. Lauderdale Beach

Rio Vista

Victoria P. & Colee H.

Sunrise Key


$3,454,200 25

$7,911,875 8

$3,056,250 4

$3,055,938 8

$982,500 2

$4,356,923 3

East Fort Lauderdale’s luxury segment is mainly a waterfront market,

since most of its single-family homes are set on small isles facing the

area’s popular canals. With 300 feet of private beach for residents,

Harbor Beach is a clear category leader at an average home price

of $7,911,875. Harbor Beach waterfront properties usually include

deep-water dockage and gorgeous dry lots. Harbor Beach Surf Club,

a members-only organization dedicated to preserving the beach,

also offers a small, private marina with 16 docks.


$300$200$150$100$50$0 $250


Coral Ridge/C.R.C.C.: g 22.4%

Lighthouse Point: g 16.0%

Lauderdale-by-the-Sea: g 2.3%

Broward | North EndNon-Waterfront, Single-Family Homes

$215$152$303

$199$146$219

$262$210$246

$256$181$201

$226$158$199

Ft. Lauderdale | Broward’s South End

Western SuburbsLauderdale-by-the-Sea

Lighthouse Point


Coral Ridge / C.R. Country Club

Omissions due to low transaction numbers or absence of market: Hillsboro Beach, The Landings, Bay Colony and Sea Ranch

The Broward | North End market is comprised

of Lauderdale-by-the-Sea, Hillsboro Beach,

Lighthouse Point, The Landings, Bay Colony,

Coral Ridge & Coral Ridge Country Club and

Sea Ranch, all located on the coast above

Fort Lauderdale. As for non-waterfront, single-

family homes, the most significant submarkets

are Lauderdale-by-the-Sea, Lighthouse Point

and Coral Ridge / C.R.C.C., which are analyzed

in this section of the report.

All three submarkets saw an upward trend in

pricing from 2013 to 2014. Lauderdale-by-the-

Sea, a charming beach village nicknamed the

“Shore Diving Capital of Florida” because of its

unique snorkel trail, experienced the highest

average pricing by a small margin at $262 per

square foot (the three submarkets are trading

within the low to mid $200s per square foot).

In terms of growth, Coral Ridge / C.R.C.C. saw

the biggest increase from 2013 at 22.4%. Coral

Ridge is a high-end community offering estate

homes, condos and townhomes, many with

pools and large lots.


sing

le-f

amily

hom

es

# Transactions

Laud. bythe Sea

14

Lighthouse Point

34

Coral Ridge/ C.R.C.C.

54

48

45

2010

2011

2012

2013

2014

6 60

12 48

12 58

21 69

26 54

Lauderdale-by-the-Sea

Lighthouse Point

Coral Ridge / C.R.C.C.


$626,000 13

$624,442 17

$977,077 17



Coral Ridge / C.R.C.C., the southernmost neighborhood in this area,

leads the luxury spotlight. The Coral Ridge Country Club is a focal point

selling at a slight premium over the general Coral Ridge area. Residents

enjoy yacht dockage, a classically designed golf course, tennis courts,

a junior, Olympic-sized pool and great dining options.

Lighthouse Point non-waterfront, single-family

home pricing increased 16% from 2013 to

2014 and crossed the $200-per-square-foot

line for the first time in the five years analyzed.

Bordered by the Intracoastal and the ocean,

Lighthouse Point has manicured parks ideal

for joggers and bikers of all ages. The small

town offers residents a peaceful atmosphere

in a predominantly-single-family-home market,

as these properties make up 80% of the area

and line Lighthouse Point’s 18 sprawling miles

of waterways and canals.

All three neighborhoods experienced a slight

dip in pricing from 2010 to 2011. Although

Coral Ridge / C.R.C.C. has yet to reach the

average pricing it reached during 2010, it has

been steadily increasing over the past two

years. Lauderdale-by-the-Sea and Lighthouse

Point not only bounced back during 2012, but

are now at the highest average pricing they

have experienced in all five years analyzed.

These are considered very reliable trends due

to the high transactional volume displayed for

the three submarkets over the past few years.

Riva, Fort Lauderdale | Riva-Condo.com


Broward | North EndWaterfront, Single-Family Homes

Ft. Lauderdale | Broward’s South End

Western SuburbsLighthouse Point

The Landings

Bay ColonyLauderdale-by-the-Sea

Hillsboro Beach



Sea Ranch: g 43.4%

Lighthouse Point: g 13.1%

The Landings: g 18.0%

Coral Ridge / C.R.C.C.: g 9.6%

Bay Colony: h 15.9%

Coral Ridge / C.R. Country Club

Sea Ranch

$800$600$400$0 $1,600$1,200$1,000$200 $1,400

$331$742$284$287$355$326$306

$443$1,401$381$360$369$423$466

$332

$294$329$336$334$321

N/Ano transactions

$370

$337$305$439$386$325

N/Ano transactions

$391

$284$303$379$307$297

N/Ano transactions

Lauderdale-by-the-Sea: g 19.7%

Hillsboro Beach: N/A

As stated on page 46, Broward’s North End

market is comprised of Lauderdale-by-the-

Sea, Hillsboro Beach, Lighthouse Point, The

Landings, Bay Colony, Coral Ridge & Coral

Ridge Country Club and Sea Ranch, all located

on the coast directly above Fort Lauderdale.

All neighborhoods analyzed reached a higher

average price per square foot during 2014 than

they did in 2010, with the biggest growth seen

in Hillsboro Beach at 88.8%. Hillsboro Beach is

a highly exclusive market with very few annual

transactions. In the past five years, only a total

of four waterfront, single-family homes have

been traded in the area.

Three neighborhoods closed 2014 in the $400

range per square foot (Lauderdale-by-the-Sea,

Coral Ridge / C.R.C.C. and Sea Ranch) while

the remaining three traded in the mid to high

$300s per square foot (Lighthouse Point, The

Landings and Bay Colony).



sing

le-f

amily

hom

es



# Transactions

Laud. bythe Sea

41 24 11

HillboroBeach

59 21 7

Lighthouse Point

56 18 10

The Landings

59 23 8

Bay Colony

52 29 7

2010

2011

2012

2013

2014

21 2

14 0

22 0

20 0

16 2

25 2

40 4

53 6

Coral Ridge/ C.R.C.C.

43 3

SeaRanch

44 5

Lauderdale by the Sea

Hillsboro Beach

Lighthouse Point

The Landings

Bay Colony

Coral Ridge / C.R.C.C.

Sea Ranch


$2,798,000 5

$13,025,000 2

$2,248,700 20

$1,339,167 12

$2,366,667 3

$2,736,141

$3,827,500

15

2

In terms of luxury residences in Broward’s North End, the undisputed leader

in waterfront, single-family home pricing is Hillsboro Beach at $13,025,000,

although its low transactional volume is not reliable enough to portray a trend.

Hillsboro Beach real estate offers some of the most prestigious properties in

South Florida based on its geography alone. Residences sit on through-water

lots along this secluded neighborhood spanning 3.2 miles. To give an idea

of the intimacy and proximity to nature, the area’s greatest width is 900 feet.

Residences tend to have been custom-designed to their owners’ request.

Sea Ranch Lakes, a small area surrounded by the Lauderdale-

by-the-Sea neighborhood, presents the largest year-to-year

growth at an average $466 per square foot during 2014, 43.4%

higher than it was in 2013. A good amount of Sea Ranch’s

homes are waterfront, facing either the Intracoastal or one of its

two inner lakes: Lake Cayuga and Lake Seneca. Like Hillsboro

Beach, this submarket presents just a few transactions in the

five-year period analyzed, giving an indication of the market

without providing robust statistics with which to detect a real

trend. The majority of the Sea Ranch Lakes village is a gated

community (with a buyer wait list), with the remainder being a

shopping plaza and a private beach club for village residents.

3140 NE 23 Avenue, Lighthouse Point


Western SuburbsNon-Waterfront, Single-Family Homes

Miami

Ft. Lauderdale


While the majority of this study focuses on

the luxury markets located east of I-95, there

are five submarkets that have been competing

with the eastern markets for buyers of luxury

homes. In many cases, these markets have

drawn buyers by offering comparatively lower

prices, newer homes, larger lot sizes and/or

gated communities. For the Western Suburbs

market area, we include the neighborhoods

of Southwest Ranches, Plantation, Sunrise

Weston and Parkland. The average pricing

overall in these submarkets generally tracks

10% to 50% less than similar-sized homes in

comparable eastern neighborhoods.

The market leader in terms of average pricing

in the Western Suburbs is Southwest Ranches,

ending the five-year period at an average of

$200 per square foot, which was 3% greater

than the second highest neighborhood and

60% higher than the lowest priced. Southwest

Ranches offers larger lot sizes than is typical

for any other submarkets, with homes built on

five-acre sites being relatively common.

Weston: g 3.2%

Southwest Ranches: h 3.4%

Plantation: g 9.4%

Sunrise: g 14.7%

$250$200$150$100$50$0

Southwest Ranches

Sunrise

Plantation

Weston


Parkland

$191$97$129$168$144

$178$89$121$165$146

$176$92$121$165$149

$207$109$138$188$158

$200$125$151$194$171 Parkland: g 8.2%



This feature typically results in a higher price per square foot of building area,

as the pricing overall is pushed higher because of the site size, while home size

is not proportionately larger. The Southwest Ranches neighborhood, known for

its equestrian lifestyle, also tracks last in terms of transactional volume, in large

part as well due to the large site area typical for most residences, which results

in lower development density.

Pricing per square foot has increased over 2010 levels in all neighborhoods

analyzed, though average appreciation gains are much lower than other

submarkets. Price appreciation over 2010 levels for the Western Suburbs ranged

from 4.7% for Southwest Ranches and Weston neighborhoods, to 18.8% for

Parkland, to 28.9% for the Sunrise neighborhood.

sing

le-f

amily

hom

es



# Transactions

SouthwestRanches

604 712

Sunrise

644 705

Plantation

816 815

Weston

915 857

863 823

2010

2011

2012

2013

2014

91 603

105 661

104 699

105 700

92 792

175

196

230

Parkland

279

250

Southwest Ranches

Sunrise

Plantation

Weston

Parkland


$1,659,045 22

$262,207 434

$599,031 275

$820,343 292

$786,475 94

Our Luxury Spotlight leader is, far and beyond, Southwest Ranches at an average

home price of $1,659,045, double the amount of second-ranked Weston. The

semi-rural area is very much protected to maintain their farm-like lifestyle. The

town has laws that keep homes from being built on lots of less than one acre and

generally stop streetlights and sidewalks from being constructed. To support its

equestrian nature, Southwest Ranches has developed miles of multi-use trails.

People can be often be seen riding horses or bicycles throughout the town.

13607 Bella Ranch Lane, Southwest Ranches


Luxury Spotlight

Non-Waterfront Condos

Waterfront Condos

General Statistics

Ft. Lauderdale: A Thriving City

BrowardCondos

The Southern Broward County luxury condo

market is primarily concentrated on the Fort

Lauderdale, Hallandale and Hollywood Beach

submarkets, with nearly all of the product on

the waterfront. The Broward market has a

larger share of its condo market directly on the

sand, as opposed to locations on a waterway,

or locations with water views. However, much

of the “on the sand” product is older, so the

pre-construction inventory available today

tends to be smaller, with more exclusive,

boutique buildings being proposed. These

pre-construction developments are reportedly

selling very well because of a lack of new

beachfront alternatives.

A review of the Broward condo market data

shows that markets across the board have

been experiencing double-digit appreciation

since 2011–2012. Both waterfront and non-

waterfront condos closed 2014 at higher

average pricing per square foot than they

did any of the previous four years. The

county’s oceanfront real estate markets are

dominated by higher-density condominium

developments and, as most of the currently-

under-construction inventory gets delivered to

market in 2015 and 2016, this newer product

is highly likely to continue to pull up resale

pricing even further.

Like the single-family market, condos in Fort

Lauderdale and Broward’s South End tend to

attract a large percentage of their buyer pool

from Northeastern U.S. and Canada. The city

of Fort Lauderdale has quickly evolved to offer

great amenities and a variety of employment

options, attracting young professionals as

well. Following two back-to-back brutal winter

seasons throughout the U.S. and Canada,

Broward is likely to see significant demand

in 2015 and be the primary beneficiary of a

wave of buyers from these northern markets,

provided interest rates remain low.

2010 2011 2012 2013 2014

12,191 962$95

9,136 1,243$91

8,0741,614$95

9,563 2,157$116

13,2492,134$129


PPSF Trendline b

2010 2011 2012 2013 2014

13,522 1,009$175

10,3731,169$170

9,128 1,430$191

9,200 1,733$201

11,202 1,690$202


PPSF Trendline b

“Second Largest Increase in Metropolitan Employment in the U.S. from 2013 to 2014”

- Bureau of Labor Statistics

“One of the Best U.S. Cities for Global Trade” - Global Trade Magazine

“One of America’s 10 Most Exciting Mid-Sized Cities” - Movoto National Real Estate

“Development, Retail Sales Lifting Fort Lauderdale-Area Economy”

- Sun Sentinel

“One of America’s 10 Greenest Mid-Sized Cities”

- MyLife.com


Luxury Spotlight


2010 2011 2012 2013 2014

$1,3

58,0

00

$1,4

66,0

00

$1,3

12,0

00

$1,3

95,0

00

$1,4

51,0

00

h

16

h

1,069

h

27

h

796

Sold

For Sale

h

65

h

792

h

52

h

943

h

51

h

781

Avg.

Hom

e Pr

ice

Tren

dlin

eh

La Rive | 715 Bayshore Drive, #401, Fort Lauderdale

The Broward condo market has not had any

transactions over $5 million in the five years

analyzed in this report. Most of its luxury condo

market is in Fort Lauderdale’s coastal areas,

which are experiencing new development.

In general, real estate prices in Fort Lauderdale

are much more competitive than they are in

Miami. While both markets are experiencing

substantial growth, luxury penthouses in Fort

Lauderdale are usually in the $3-million to

$4-million range. This pricing range represents

the top tier of the city’s existing condominium

inventory, which usually comes with world-

class amenities and spectacular water views.

“Although condo sales do not typically exceed $5

million, we project some transactions may inch

up to $6 million sometime during 2015 due to the

current growth of the Fort Lauderdale market.“

– Susan Rindley, ONE Sotheby’s International Realty

One significant factor in Fort Lauderdale’s

lack of an ultra-luxury condo market is the age

of the real estate product. The city’s current

situation, however, might change any minute

with some of the proposed, new development.

Condominium towers such as Auberge Beach

Residences & Spa, an oceanfront project to

begin construction during 2015, plan on asking

well over $5 million for the top-level inventory

— a price Fort Lauderdale buyers may be

willing to pay due to the quality and size of

the product combined with its beachfront

location, something that is only attainable at a

much higher premium in other areas.

Fort Lauderdale’s new development wave will

also offer some of the higher-level pricing the

city is now used to seeing with projects such

as RIVA, a 100-residence building with luxury

penthouses starting at under $3 million.


Broward | South EndCondo Market Index

Miami


-0+2010

2011

2012

2013

2014

Hollywood Beach | Waterfront

% of Sample Traded

8%

21%

18%

14%

9%


h 3.4%

g 11.6%

g 8.5%

g 10.0%

$489

$505

$447

$543

$409

2,680

2,959

2,742

2,575

2,733$1,116,829

$1,224,866

$1,494,735

$1,309,166

$1,397,349

-0+2010

2011

2012

2013

2014

Hallandale Beach | Waterfront

% of Sample Traded

8%

11%

11%

15%

12%


g 18.3%

g 13.8%

g 3.1%

g 4.2%

$434

$354

$305

$453

$296

1,626

1,573

1,610

1,613

1,554$459,376

$491,510

$557,194

$705,130

$729,977

Western Suburbs

Omissions due to low transaction numbers or absence of market: Northern Beaches and Western Suburbs

The area called Broward | South End is so-named because, relative to

the city of Fort Lauderdale, these cities are found to the south. This

submarket is comprised of the condo towers located on the barrier

island in Hallandale Beach and Hollywood Beach and does not include

any non-waterfront product outside the beaches.

Hollywood has a number of restaurants and venues all located just

off the beach, which is really the focal point of the area. Of note is the

fact that Hollywood is also the 12th largest city in Florida, as it stretches

far to the west. The pricing in the graphs and charts reflects only those

condo towers found on the barrier island, all of which are waterfront.

While Hollywood does have a handful of Downtown condos, these

towers are miles away from the ocean and command pricing that is far

more modest and outside of the realm of true luxury.

Hallandale, a hotspot for redevelopment, is the first city over the border

into Broward County. Hallandale Beach features condo towers all along

A1A overlooking the Intracoastal and Atlantic Ocean. Gulfstream Park

and Casino is located in the heart of Hallandale Beach and serves as

a major demand driver for vacation rentals and full-time residences. In

addition to its entertainment options, Hallandale is also conveniently

situated, providing its residents with relatively easy access to the

entirety of Broward and Miami-Dade Counties.


East Fort LauderdaleCondo Market Index

-0+2010

2011

2012

2013

2014

East Fort Lauderdale | Waterfront

% of Sample Traded

6%

6%

10%

12%

9%


g 8.4%

g 4.7%

g 5.3%

g 10.5%

$452

$414

$395

$506

$374

2,409

2,243

2,142

2,171

2,391$894,641

$846,146

$929,408

$1,089,908

$1,097,663

-0+2010

2011

2012

2013

2014

Las Olas | Waterfront

% of Sample Traded

10%

7%

12%

16%

16%


g 10.0%

g 8.5%

g 4.1%

g 12.2%

$406

$365

$334

$462

$320

2,318

2,483

2,329

2,381

2,431$779,103

$778,120

$906,913

$940,986

$1,100,938

cond

omin

ium

s




The New River that runs throughout Las Olas and Fort Lauderdale

is one of the primary reasons for the absence of “non-waterfront”

condominium towers in the area. In addition to the river, there are a

number of canals and waterways which weave their way through Fort

Lauderdale’s Downtown area. The area is seeing an influx of young

professionals due to its many financial companies and law offices,

its discounted pricing as compared to Miami-Dade and its access to

Broward, Palm Beach and Miami-Dade.

Las Olas gets its name from the main street that runs through its heart,

Las Olas Boulevard. This street runs parallel to Broward Boulevard and

serves as an arts-and-leisure based twin to Downtown Fort Lauderdale.

Las Olas is defined by the tremendous walkability and waterfront

character. This is also the center for young professionals in Broward

County, which is reflected in the large number of restaurants and bars.

The area is also walkable to Fort Lauderdale’s Riverwalk, another

central concentration of bars, clubs and restaurants.

For the purposes of this report, the Fort Lauderdale condo market

excludes the non-waterfront segment. Fort Lauderdale is known as the

yachting capital of the world and its atmosphere certainly supports that

claim. With dozens of bars and restaurants, it has become increasingly

attractive for young professionals, families and retirees alike.


Area Development Name CompletionUnit Sizes (S.F.)

Park Grove

Brickell City Centre

Brickell Flatiron

SLS Lux

One Thousand Museum

Miami World Center

Three Hundred Collins

Louver House

Glass Miami Beach

1 Hotel & Residences

Shore Club Residences

Residences at Ritz-Carlton

L’Atelier

Beach House 8

The Bath Club Estates

The Surf Club Residences

Oceana Bal Harbour

Kai at Bay Harbor

Marina Palms

Mansions at Acqualina

Jade Signature

Turnberry Ocean Club

Armani Casa

Muse

Beachwalk

Paramount

Auberge Beach Residences

Adagio on the Bay

Riva

Metropica

Pre-construction Market SpotlightOur Picks for the Top 30 New Condos Rising in South Florida

Coconut Grove

Brickell

Brickell

Brickell

Downtown Miami

Downtown Miami

South Beach

South Beach

South Beach

South Beach

South Beach

Miami Beach

Miami Beach

Miami Beach

Miami Beach

Surfside

Bal Harbour

Bay Harbor Islands

Aventura

Sunny Isles

Sunny Isles

Sunny Isles

Sunny Isles

Sunny Isles

Hollywood Beach

Fort Lauderdale

Fort Lauderdale

Fort Lauderdale

Fort Lauderdale

Sunrise

2017

2015

2017

2017

2017

2018

2016

2016

2015

2014

2015

2016

2017

2014

2015

2016

2016

2016

2015

2015

2016

2018

2017

2017

2015

2016

2017

2014

2016

2016

747 – 3,590

870 – 3,200

898 – 2,310

945 – 1,780

4,600 – 9,800

1,290 – 2,380

2,530 – 3,150

2,090 – 2,430

1,930 – 3,370

830 – 4,000

1,000 – 4,000

1,750 – 6,530

2,300 – 8,000

3,780 – 5,240

5,620 – 10,200

1,200 – 8,000

1,320 – 4,200

1,100 – 1,800

1,820 – 2,600

4,800 – 16,000

1,380 – 4,950

2,750 – 10,000

1,350 – 3,750

2,360 – 5,800

1,090 – 1,850

1,930 – 3,480

1,500 – 5,000

3,280 – 3,420

1,500 – 2,500

740 – 1,300

# Units

289

790

552

450

83

482

19

12

10

163

85

111

20

8

13

150

240

58

234

79

192

154

260

68

300

95

171

12

100

263


YOUR TOP RESOURCE FOR SOUTH FLORIDA REAL ESTATE.

*Data by BrokerMetrics, past 12 months.

53Percent

Growth in totalsales volume

from 2013 to 2014

Number One

Leader in local luxury condo sales

(over $500k)*

$3 Billion

Amount in new, luxury developments represented by ONE

$1.3 Million

Average listing price in millions

(highest in South Florida)*

Four Hundred Fifty

Local real estate experts, ready to guide

you through the market

Fifteen Thousand

Global partnerswithin Sotheby’s Realty,

the world’s luxury standard

AVENTURA · BAY HARBOR · BRICKELL · CORAL GABLES · FORT LAUDERDALE · KEY BISCAYNE · MIAMI BEACH · SUNNY ISLES

©MMXV ONE Sotheby’s International Realty, licensed real estate broker. Sotheby’s International Realty® is a licensed trademark to Sotheby’s International Realty Affiliates LLC. An Equal Opportunity Company. Equal Housing Opportunity. Each Office is Independently Owned and Operated. Statistics provided by Integra Realty Resources – Miami\Palm Beach. The information contained herein is deemed accurate but not guaranteed.

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