Miami Beach waterfront homes are well-known throughout the world and offer unparalleled distinction, but not all Miami Beach homes were created equal – desirability has to do with location, condition of the property, size and views.  We will give you a break down of all the homes that were sold this year per island in order to be able to differentiate and understand pricing throughout Miami Beach.

The formula to understanding the Miami Beach waterfront home market is knowing that no matter what the comps are, most buyers are cash buyers and price is determined mostly by desirability of the property, not so much by how much other comparable homes have sold for. This is a total anomaly and difficult for a lot of buyers to understand, especially if you are looking to upgrade from a non-waterfront home, or are ready to make the switch to this very desirable lifestyle.

The Median Listing price for a Miami Beach waterfront home is currently $4.7 Million.  And if you are not convinced that this real estate sector is hot, out of the 165 homes listed for sale, only 2 are distressed (both are short sales – one in Normandy Island and the other one in Mid-Beach).

There were 100 Miami Beach waterfront homes sold in 2011.

Star Island Home Sales

4 Star Island waterfront homes sold – averaging $1,137 per square foot with the highest sale at $25.5 Million for the house located at 13 Star Island Dr – with 15,000 sf of living space, 8 bedrooms, 40,000 sf lot and 100 feet of water frontage.

Palm Island Home Sales

2 Palm Island homes sold on the water -  highest sale at $14.2 Million for the house located at 94 Palm Avenue with over 14,000 sf of living space, 8 bedrooms and 200′ of water frontage.  The average price per square foot for Palm Island homes coming in at $912.

Hibiscus Island Home Sales

5 Hibiscus Island homes sold on the water – price ranging between $1.9 and $9.35 Million.  The highest sale of $9,350,000 was for the home designed by Oppenheim, located at 40 S Hibiscus, with 8,000 sf of living space, 24,000 sf lot, 8 bedrooms and 120′ of water frontage. The average price per square foot in Palm Island was $740.

Venetian Islands Home Sales

There were 18 Venetian Island waterfront homes sold – prices ranging between $1.595 Million to $5.5 Million, with an average price per sf of $692.  The highest sale was for the unfinished construction at 1429 N Venetian Wy, with over 13,000 sf of living space, 26,764 sf lot, 8 bedrooms and 200 feet of water frontage

Sunset Islands Home Sales

There were 6 Sunset Island homes sold on the water – prices ranging between $2.4 million and $19.9 Million.  The average price per sq.ft. coming in at $924.  The highest sale was a historically significant home designed by Maurice Fatio at 1736 W 28th St, with 70,885 sf of land, over 11,000 sf of living space, 7 bedrooms and 453 feet of water frontage!

North Bay Road Home Sales

There were 10 North Bay Rd waterfront homes sold this year.  Their prices ranging between $1.55 to $15 Million and averaging $787 per sq.ft.  The highest sale was for the 13,000 sf home located at 4580 N Bay Rd, with over 24,000 sf of land, 8 bedrooms and 148 feet of open bay water frontage.

La Gorce Island Home Sales

There were 2 waterfront La Gorce Island homes sold.  One for $6.5 Million and the other for $11.6 Million and averaging $909 per sq.ft.  The highest sale was the ultra contemporary home at 94 La Gorce Cr with over 15,000 sf of living space, over 20,000 sf lot, 9 bedrooms and 120 feet of water frontage.

Allison Island Home Sales

There was one waterfront Allison Island home sold this year at 6475 Allison Rd.  The home has almost 5,000 sf of living space, over 21,000 sf of land, 5 bedrooms, 100 feet of water frontage and sold for $2.45 Million at $494 per sf… BARGAIN!! (even for a fixer upper).

North Bay Island Home Sales

There were no waterfront homes sold in N. Bay Island

Normandy Island Home Sales

There were 8 waterfront homes sold in Normandy Island, which historically, has been the least expensive waterfront real estate in Miami Beach.  They ranged in price between $770,000 and $2.6 Million for the bay front home located at 1800 Bay Drive – with over 5,000 sf of living space, 5 bedrooms, over 10,000 sf of land and 60 feet of water frontage.  The average price per sq.ft. in Normandy Island coming in at $437.

Biscayne Point Home Sales

11 Biscayne Point waterfront homes sold in 2011 ranging between $385,000 for a foreclosure, to $1.15 Million for the home located at 7972 Biscayne Point Cr.  This home has over 4,000 sf of living space, 5 bedrooms, 12,150 sf lot and 100 feet of water frontage.  The average price per sq.ft. in Biscayne Point coming in at $219.

Stillwater Island Home Sales

12 Stillwater Island waterfront homes sold ranging between $550,000 for a foreclosure, to $1.7 Million for the home at 1481 Stillwater Dr – with 2,800 sf of living space, 4 bedrooms, 7,500 sf lot and 50 feet of water frontage.  The average price per square feet for Stillwater being $378.

Pinetree Drive Home Sales

There were 5 Pinetree waterfront homes sold ranging between $1.9 (for an unfinished abandoned construction home), and $6.5 Million.  The highest sale of $6,536,289 was for the mediterranean mansion located at 4855 Pinetree Dr, with over 10,000 sf of living space, almost 40,000 sf lot, 6 bedrooms and 100 feet of water frontage.  The average price per sq.ft. in Pinetree coming in at $660.

It is obvious that the waterfront housing market in Miami Beach improved by a landslide in 2011 and this is evidenced by amount of sales, decrease in inventory as well as decrease in distressed properties for sale.  There are still some areas like Biscayne Point and Stillwater that are not out of the water (pun intended), but this helps keep a balance with the rest of Miami Beach.  Here is a graph showing price per square foot in each of the islands, and as expected, Star Island is at the top with The Sunset Island and La Gorce Island following close behind.

What’s fortunate for everyone looking to buy or sell their Miami Beach waterfront property, is that because there have been sales, we now have real comps.  This means that buyers and sellers don’t have to pull numbers out of their imagination but have real numbers to base their decisions on.  Granted….in our Miami Beach Luxury real estate market, this doesn’t mean much, great homes many times sell for unfathomed prices just because they are fabulous.

I’ll end this report with last years’ quote,

As much as I hate scripts and we’re taught to say “a home is worth what a buyer is willing to pay and a seller is willing to accept”…it could not be more true when it comes to Miami Beach Homes, especially when dealing with waterfront homes

Because we do specialize in Miami Beach luxury homes and waterfront homes, I will give you a summary of all the waterfront homes sold this year in Miami Beach and I will break those down by island or desirable location within Miami Beach.  You will see a lot of Mega sales (the ones above $3 Million), which is a change from 2010. (click on the graph above to download PDF of all sales to date).

Star Island Home Sales

There were only 3 Star Island homes sold so far this year ranging from $7.1 million to $25.5 million!  The average price per square foot coming in at $1,028 and the highest for all of Miami Beach.

13 Star Island was listed for $32,000,000 and sold for $25,500,000.  With 8 bedrooms / 8 bathrooms / 2 half-baths, 15,008 square feet of living space on a 100′ X 400′ lot with private dock, pool, boat lift, state of the art electronics ….yada yada yada – (everything you would expect from a 15,000 sf mansion).  What’s amazing is that this house was listed January of 2011 and sold in only 2 months!  (the monthly rental for this gem was $325,000 – higher than the average home in Dade-County!) << that’s why I love Miami.

Hibiscus Island Home Sales

There were 3 Hibiscus Island homes sold this year ranging from $2.4 Million to $9.35 Million.  The average price per square foot for the island coming in at $828.  The highest sale in Hibiscus was my all-time favorite home designed by Oppenheim at 40 South Hibiscus Drive – Miami Beach Luxury Home Pick – Hibiscus Island << click to see the photos - A – MA- ZING!!  and the lucky buyer walked away with this beauty for $9.350 Million.  The house was originally listed for $13,995,000 in June of 2010, was reduced several times and sold in May.

Venetian Islands Home Sales

The Venetian Islands are seeing quite a bit of movement in the past 2 months, and there have been 12 waterfront home sales this year with an average price per square foot of $725 – quite an increase from the average $634/sf in 2010! The highest sale was for unfinished construction at $5.5 Million back in March.

1424 N Venetian Way came in as the 2nd highest Miami Beach home sold in March of 2011.  It was originally listed at $6.5 Million in August of 2009 and finally sold for $5.5.

Sunset Islands Home Sales

The Sunset islands have seen better days with only 2 sales so far this year and average price per square foot of $717 (less than The Venetian Islands which is unheard of!).

1410 W 25 St – sold for $5,000,000 on June 7th, 2011.  Located in Sunset Island 2 – with 5,920 sf and 20,200 sf lot (inside lot, not open bay).  This house was purchased for $6.5 Million in November 2005 and took only 3 weeks to sell when they listed it for $5.499 Million in April of this year.  The Marketing description reading: screaming in all caps:

GREAT MIAMI BEACH WATERFRONT ESTATE WHERE QUIET COLORS CREATE A BOLD IMPACT YET A RELAXED SENSE OF INDULGENCE. BEST DESCRIBED AS THE HOUSE THAT BECOMES YOUR HOME, THIS BEAUTIFULLY REMODELED FIVE BEDROOM, (WITH OPTION TO USE THE STUDY AS A SIXTH BEDROOM) AND SIX AND ONE HALF BATH ISLAND OASIS, EXUDES TRANQUILITY AWASH A SEA OF WIDE-OPEN SPACES, LUSH TROPICAL LANDSCAPING AND 100 FEET OF WATERFRONT FRONTAGE.  A STONE-THROW AWAY FROM THE OPEN BAY!

North Bay Road Home Sales

I’m always curious to analyze how North Bay Road Mansions stand up against the rest of Miami Beach.  There are no private gates, but gorgeous open bay views that take your breath away.  There have been 5 North Bay Road homes sold this year, which are not a real representation of what usually sells and the average price per sq.ft. coming in at $769.  The highest sale was in our Top 3 highest Miami Beach Homes – April edition.

Pinetree Drive Home Sales

Pinetree has only had 2 waterfront home sales this year, with an average price per sq.ft. $621.  The highest Pinetree Drive Home was in our Top 3 Miami Beach Home Sales – March edition.

More Miami Beach Home Sales

In addition to the mentioned sales, there was also one sale in Allison Island for $2.45 Million (fixer upper selling at $491 / square foot), and no waterfront sales yet in La Gorce Island, Bal Harbour, Bay Harbor Islands, Indian Creek Village or Palm Island.  Normandy Island had 5 sales with an average price per square foot of $436 and we decided to add Golden Beach to the mix because we are seeing a lot of people considering the move there because of affordability factors.

Golden Beach Home Sales

There have been  7 waterfront Golden Beach homes sold this year with an average price of $621/sq.ft.  The highest sale was an oceanfront house selling at $7.7 Million

277 Ocean Blvd sold in March for $1,186 / sq.ft. – that’s higher than the Star Island home sale but then again, we are talking beach front.  A 6,495 sf house on a 20,700 sf lot with 6 bedrooms, 6 bathrooms and 1 half-bath, 2-car garage, totally renovated with a monthly rental price of $42,000.  It was originally listed for $11,800,000 in 2006.  Remember that Ricky Martin is also selling his Golden Beach home – that one listed for $18.9 Million.

So there you have a brief synopsis of what has happened to the Miami Beach Waterfront Housing Market in the first half of the year.  To download the data associated with this article, please click on the button bellow.  **all information obtained from the Southeast Florida Multiple Listing Service**

There are 191 Miami Beach waterfront homes for sale right now ranging from a $450,000 short sale on Hawthorne Avenue right outside Biscayne Point Island, to a $49,995,000 Star Island Mansion. Miami Beach waterfront homes are highly coveted world wide and they are priced according to condition, size, location and views…but VIEWS and LOCATION are key.

The formula to understanding the Miami Beach waterfront home market is knowing that no matter what the comps are, most buyers are cash buyers and price is determined mostly by desirability of the property, not so much by how much other comparable homes have sold for. This is a total anomaly and difficult for a lot of buyers to understand, especially if you are looking to upgrade from a non-waterfront home, or are ready to make the switch to this very desirable lifestyle.

Let’s take Shaq’s Star Island home as an example because the price range cannot be any more random. He purchased the home in 2004 for $18.8 Million, then listed it for $32 M, increased it to $35M and ended up selling it for $16 Million! To top things off, the buyer, Vladislav Doronin, ended up gutting the entire mansion. That’s a $16 Million fixer upper for you! Only in Miami Beach…. or shall we call that a MIAMISM ?

Another example is the current real estate housing trends of The Sunset Islands, one of the most esteemed sets of islands in Miami Beach. Desirability starts at Sunset Island I, then II, then III and historically, Sunset Island IV has fallen in last place. You will see below that the only 2 sales this year in the Sunset Islands have been 2 distressed sales in Sunset Island IV at ridiculous prices. Does that mean that a $1.3 Million ticket price on a sold house will determine where the current $25 Million listing will sell? Not a chance!

So keep in mind that not everyone is willing to throw money up in the air, and not everyone is a tire kicker either.  Average price per square foot has dropped in all of Miami Beach, but this is not the end of the world and some sellers are still getting top dollar for their homes…look at Bosh’s $12.3 Million purchase.

I decided to give you true numbers and stats to paint a perspective of the Miami Beach waterfront  home market, but the more I look at these numbers, the more I see an abstract or even a surrealist painting.  So take these with a grain of salt and make sure you work with someone that has experience in this market.

There have been were 65 70 waterfront homes sold in Miami Beach in 2010.  Let’s break this down to each Miami Beach island/s:

• 1 sale in Star Island – 44 Star Island Drive selling for $7,250,000 at $1535/sq.ft.

• 4 waterfront sales in Palm Island – averaging $814 / sq.ft. with the highest sale for a 12,184 sq.ft. home located at 55 Palm Ave, which sold for $11.95 Million.

• 4 waterfront sales in Hibiscus Island – averaging $695/sq.ft. with highest sale for an 8,096 sq.ft. home located at 269 N Hibiscus selling for $5.4 Million

• 8 9 waterfront sales in The Venetian Islands – averaging $634/sq.ft. $625/st.ft. with the highest sale for a 4,200 sq.ft. home located at 303 E. Dilido selling for $3.4 Million

• 2 waterfront sales in The Sunset Islands – averaging $555/sq.ft. but keep in mind that these were facing South towards condos on island IV on a narrow canal (not your typical Sunset Island sales).  The highest sale was for a 2,255 sq.ft. home located at 1440 W 21 Street, selling for $1.6 Million.

• 7 8 waterfront North Bay Road sales – averaging $785/sq.ft. $813/sq.ft. with the highest sale being Chris Bosh’s 12,000 square foot crib which he bought for $12.333 Million

• 4 waterfront home sales in La Gorce Island – averaging $880/sq.ft. with the highest sale for a 17,183 square foot home at 88 La Gorce Cr, which sold for $16 Million (highest sale this year in all of Miami Beach)

• There have been no sales in Allison Island this year
• 11 waterfront home sales in Normandy Island – averaging $280/sq.ft. with the highest sale for a 3,446 sq.ft home located at 1045 N Shore Dr, selling for $1.6 Million (North Normandy – open bay)

• 1 waterfront home sale in North Bay Island – at $330/sq.ft and located at 7520 Miami View Drive and selling for $1,679,373 (I wonder what it took to come up with that number)

• 12 14 waterfront home sales in Biscayne Point – averaging $287/sq.ft. $291/sq.ft. with the highest sale for a 4,100 sq.ft. home located at 1525 Cleveland Rd, selling for $1.625 Million

• 2 waterfront home sales in Stillwater Island – averaging $325/sq.ft. with the highest sale for a 2,210 short sale located at 1480 Stillwater Dr, selling for $710,000
• 6 7 waterfront home sales on Pinetree Drive – averaging $543/sq.ft. $487/sq.ft. with highest sale for a 7,595 sq.ft. home located at 5245 Pinetree Dr, selling for $5.25 Million

The remaining 3 waterfront homes sold in Miami Beach this year were right outside one of the islands or on an inside canal, still desirable waterfront, but not as much as the islands.

An even better perspective of the performance of each island is through this graph, although the figures are a bit skewed because of the lack of sales.  The Sunset Islands have historically sold for more per square foot than The Venetian Islands, but that is not reflected in this year’s sales.

Many times you call us and ask us about desirability of each island and why the disparity in price ranges.  I think that same difference is a good tool to weigh desirability.  Star Island showing the highest price per square foot, followed by La Gorce Island, then Palm Island, followed closely by North Bay  Road.

As much as I hate scripts and we’re taught to say “a home is worth what a buyer is willing to pay and a seller is willing to accept”…it could not be more true when it comes to Miami Beach Homes, especially when dealing with waterfront homes.  Even with that, there are still some great buys out there….bank owned properties and sellers that NEED to get out, but it’s  not the norm.

**all information obtained from the SouthEast Florida Multiple Listing Service**

**There were 5 additional sales at the end of the year that were not originally reflected in this article (originally published December 13th, 2010)

• 5310 N Bay Rd – sold for $9,100,000
• 226 W Rivo Alto Dr – sold for $1,800,000
• 5223 Pinetree Drive – Short Sale sold for $1,600,000
• 1707 Cleveland Rd – sold for $1,300,000
• 1824 Cleveland Rd – Foreclosure sold for $403,000

February’s Most Expensive Miami Beach Home Sale

44 Star Island Drive – Miami Beach, FL 33139

Listed for $8,750,000 and sold for $7,250,000 on February 25th, 2010

Funny enough, this same house was our featured luxury listing for January: Miami Beach Luxury Home – Star Island

Here’s what I had to say:

The house itself is only 4,720 square feet, which is tiny compared to its neighboring estates.  It was built in 1935 and to many it will be the “ugly duckling” of the island.  But I urge to look past the obvious and notice that the existing structure does have a nice Florida Vernacular feel to it and nothing a little money and love can’t fix.  It’s listed at $1,854 per square foot but I know that’s not a fair assessment since it’s all about the size of the lot.  Well….Shaq’s lot was 87,120 square feet with 312 feet of frontage and the house was impeccable and needed no “updating” (other than changes here and there for tastes sake).  So, my guess is that neighbors are pretty angry right about now because the only comp is throwing all the numbers off.  Just based on the one sale, this property is grossly overpriced.

Here’s the MLS description:

Located on exclusive Star Island among some of Miami’s favorite celebrities, this bayfront estate offers over 200 feet of prime water frontage and provides beautiful sunrises, southeastern breezes and the utmost in security and privacy.  Just minutes from both Downtown Miami and South Beach, this Colonial-style 4,720 home is ready for your update or build to suit.  Ideal waterfront for large vessel.  Least expensive property on Star Island!!

Features:

• 4,720 square feet of living space
• Built in 1935
• 6 bedrooms / 5 bathrooms / 1 half bath
• 215 feet of water frontage
• 48,266 square foot lot
• Barrel tile roof
• 2-story home

February’s Second Most Expensive Miami Beach Home Sale

269 N. Hibiscus Drive, Miami Beach, FL  33139

Listed for $5,995,000 and sold for $5,400,000 on February 24th, 2010

New Hisbiscus Island construction (built in 2007) with an interesting listing history.  The home was originally listed in April 2007 for $10,900,000 and was on and off the market with several price reductions and increases and finally selling for $5.4 M last month.  The MLS description reads:

New-elegant Mediterranean-waterfront estate on guard gated Hibiscus Island. This luxury 3-story home comes equipped with dramatic volume ceilings, oversized impact windows/doors, multiple private balconies and boat dock which can accommodate large vessel.  Resort style swimming pool w/jacuzzi, elevator, top-of-the-line appliances, marble/wood flooring throughout. 40 X 30 roof top terrace with spectacular views of Biscayne Bay, the Downtown Miami Skyline and Port of Miami.  Never been lived in.  New home.

Features:

• New construction – built in 2007
• 8,096 square feet of living space
• 12,250 square foot lot with 70 feet of water frontage
• bayfront
• 2-story home
• 6 bedrooms / 7.5 bathrooms
• pool with jacuzzi
• elevator
• within guard-gated Hibiscus Island

February’s Third Most Expensive Miami Beach Home Sale

5760 North Bay Road, Miami Beach, FL 33140

Listed for $5,950,000 and sold for $4,500,000 on February 22, 2010

This home was listed for $7,495,000  in September 09, reduced to $5,950,000 in December and was under contract by January 7th 2010.  North Bay road boasts with the most beautiful, unobstructed views of Biscayne Bay, and this house is the perfect example of that.  Older home, built in 1963, without being pretentious, except for the view.  Shows location is still worth a pretty penny in Miami Beach.  The MLS description reads:

Endless views on this gated Mediterranean Estate on prestigious upper North Bay Rd, on a very large lot (26,830 SF) wide Biscayne Bay front lot with a large concrete dock for a substantial boat, elegant open floor – turnkey estate! Gorgeous pool, large master bedroom with sitting area and the best views on N Bay Rd. Circular driveway and lush landscaping Miami Beach Waterfront Dream!

Features:

• Built in 1963
• 6,752 square feet of living space
• 26,830 square foot lot with 92 feet of water frontage
• 3 bedrooms / 4 bathrooms
• 2-car garage
• pool

**all information obtained from the SouthEast Florida Multiple Listing Service**

Miami Beach Luxury Real Estate is all about its islands – In this market report I combined Palm Island, Hibiscus Island and Star Island just because of proximity and approach – there have only been 7 sales in the 3 islands combined all year!  The highest sale was Shaq’s Star Island Home located at 26 Star Island Drive, which he sold to Vladislav Doronin (Naomi Campbell’s boyfriend) for $16,000,000 back in June.  The lowest sale was the dry-lot home located at 286 Palm Avenue, which sold for $660,000.

The price disparity has to do with location and view as well as condition of the home. The pristine and totally updated homes will obviously sell for more than the gutted ones, near a bridge or causeway that are mainly sold for land value.

The good news about these sales is that none of them are distressed sales – bad news is that the expensive inventory is not really moving – other than Shaquille O’Neal’s home (which consequently was first listed for $35 million and ultimately “gave it away” at a mere $823/square foot ** less than what he originally purchased it for)…..but we’re not criticizing here…hoping to see Naomi Campbell lounging by the pool when we go by on our boat rather than the Shaq Bobble Head.

**UPDATE** Only one sale in the month of December for Star Island, Palm Island and Hibiscus Island – for the dry-lot property located at 242 Palm Avenue, selling for $890,000 ($319 per square foot). This Palm Island home had been listed since August 2007 starting at $1,449,000….that’s a 39% discount.

The price disparity has to do with location and view as well as condition of the home. The pristine and totally updated homes will obviously sell for more than the gutted ones, near a bridge or causeway that are mainly sold for land value.

The good news about these sales is that none of them are distressed sales – bad news is that the expensive inventory is not really moving – other than Shaquille O’Neal’s home (which consequently was first listed for $35 million and ultimately “gave it away” at a mere $823/square foot ** less than what he originally purchased it for)…..but we’re not criticizing here…hoping to see Naomi Campbell lounging by the pool when we go by on our boat rather than the Shaq Bobble Head.