Lately, price levels of high-end properties in Miami have been breaking records. The question in everyone’s mind is; Are we getting ourselves into a new real estate bubble ? Lets examine the market a little better.Over the past few months we have seen some great examples of this upward trend.
Last month, a 7000+ sq ft penthouse at the Continuum South Beach got sold for $25 million. It is the highest selling price ever for a condo in Dade County!
Earlier, a mansion on Indian Creek Drive got sold for $52 million, which is a record as well. But I think that the best example to illustrate the phenomenon is the Versace mansion, listed at $125 million.
There is a 20% increase in sales of million-dollar condos compared to 2006. My question is why is this happening?
The reason is that Miami’s market is pulled up by wealthy foreign cash buyers that are seeing Miami as a perfect place to invest their money. Beside the warm weather, Miami is hot for many reasons.
Miami benefits from the safety of being in the US combined with a fun, glamorous and exciting atmosphere. Plus we got the best NBA team!!!
However, any troubles that could happen in Europe or emerging markets would have a desastrous effect on buyers’ behavior. We got to keep in mind that the market is still very sensitive but the risk is spread out this time.