With inventory drying up in Brickell Key, owners have increased asking prices dramatically for new property listings in August 2021.
Brickell Key is unique. Located just steps away from the heart of Brickell and the Miami business district, it offers the privacy, security and the lifestyle only a small island can afford. A beautiful path by the ocean surrounds the entire island and it is lively day and night with joggers and residents walking their dogs and enjoying breathtaking views of the bay, port, downtown, Brickell, the Miami river and even boat traffic. It also has its own park, serves as home to the Mandarin Oriental Miami hotel as well as several shops, restaurants and a handful of offices; some of them host TV interviews and broadcasts for CNN, CNBC, etc.
The last 12 months have brought a record level of Brickell Key real estate activity, particularly since January, consistent with the behavior of Miami condos across the county. As depicted in the graphs below, number of sales by August 2021 are close to reaching sales volume for the entire 2020 and 2019. Brickell Key condo sales volumes will likely surpass levels not seen since 2012/2014. This is remarkable but to be fair it’s not as dramatic as what we’ve seen in other neighborhoods.
As inventory of Brickell Key condos for sale has fallen throughout 2021 due to increased sales, not enough owners are willing to list new properties for sale, increasing the dramatic fall in Brickell Key condos for sale. While low inventory levels seem to be tapering off over the last month or so, they are finally impacting pricing. Through July, pricing increases were moderate but as August kicked in and inventory dried up, owners have gotten really aggressive with significant jumps in listing prices as depicted below. This behavior mimics other neighborhoods where pricing adjustments follow inventory decreases and in most cases are able to hold.
“As Brickell Key condo inventory drops dramatically in 2021, pricing has started to increase, particularly since June/July”
Most Brickell Key condos, across buildings like Tequesta, Courvoisier Courts, Courts, St Louis, Isola, Brickell Key One, Brickell Key Two and even Carbonell, have traditionally belonged to this price tier. Asia stands out as the one building were most units are actually above this price range.
As depicted earlier in this post, Brickell Key condos for sale inventory has decreased across the board; but the composition and price of these condos has also changed. In fact, 80% of Brickell Key condo sales in 2021 have been under one million dollars, with roughly half of those sales under $500k. As the year has progressed, only 27% of the Brickell Key Condos available for sale as of September 2021 are priced under $500k, 42% are priced in the $500k-$1M range and 30% ar priced above $1M. This simple statistic clearly shows how Brickell Key condos have become increasingly more expensive, particularly over the last month or so.
Brickell Key still offers opportunities such as three condos <$300k as of mid September and many one bedrooms still under $400k. A far cry from places like Key Biscayne where the cheapest waterfront 1 bedroom condo goes for $650k. Two bedroom condos are still available in the $400k range and to an extent they are cheaper than their Brickell counterparts, something that I expect will not last long. Even three bedroom units are still affordable in “Miami 2021 terms” starting in the $800’s
“Brickell Key condos for sale inventory <$500k has decreased 30% more than other price ranges”
This price tier includes breathtaking views and generous floorplans. Asia has traditionally drawn the highest prices in Brickell Key Condos followed by Carbonell and Tequesta. Having said that, large units with beautiful unobstructed views in buildings like Courts, Courvoisier Courts and Brickell Key One/Two are now listing at least one unit in this price range.
A key data point to illustrate the accelerating dynamics of the market is the fact twelve Brickell Key condo sales closed in the last 3 months (June -August 2021) above $1.5M. Not surprisingly, seven of them closed in Asia, the newest Brickell Key condo building, while the remaining ones closed on Carbonell and Tequesta, with prices reaching slightly under $800/sf. This represents a significant increase in sales volume compared to the prior two years where 29 condos were sold above $1.5M, reaching sales prices as high as $3.75M in July 2019 for Asia #1002.
Exclusive 36 story building with only 123 units is the most modern building in Brickell Key and also the newest one, having been built in 2008. The building has large floorplans, fantastic views, and modern finishes with many units enjoying multiple terraces.
Buyers can still find opportunities in Brickell Key across all price ranges and sizes. Brickell Key is still somewhat underpriced compared to Brickell and other locations that have better brand recognition with out-of-town buyers. I expect this window of opportunity to be short lived.
Brickell Key condo prices are up, inventory is down and properties no longer take long to get sold so this may be a good time for owners to rebalance investment portfolios and obtain liquidity, hedging the risk of their valuable assets taking more time to be sold or prices stalling.
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