By Sunny Isles Real Estate Expert on January 27th, 2013
which is located in the northern portion of Miami Dade County, has experienced a recent economic and housing boom. An increasing number of home buyers are seeking out property in this area, because, while quite beautiful, it is removed from the hustle and bustle of the city. However, if current trends continue in this manner, this may not be the case for long. In 2012, the community passed the $758 million mark in home and condo sales.
As a result of this boom, a number of new housing projects are being proposed for Bal Harbour, Bay Harbor Islands, Surfside, and the surrounding communities. There are currently 10 new proposed condo developments in the works. If all are completed, these projects would bring 500 new units to the Bal Harbour community. These proposed developments are already producing an effect on existing housing prices in Bal Harbour.
What is the driving force behind Bal Harbour’s popularity? According to reports released by the Miami Dade County Property Appraiser’s office, median home prices in Bal Harbour have risen 35% over the same time last year. In addition to home buyers’ preference for the community, sales here are also being driven by the recent development of St. Regis Bal Harbour. Officially opened in January of 2012, by August, St. Regis had already passed the $658 million mark in sales. One of the highlights of these sales was the $24.6 million purchase of 5 units that a foreign investor made.
Since the condos at St. Regis
have been completed, new shops and restaurants have also opened up in the vicinity, which has further made this community much more desirable. At the average closing, home buyers have been paying between $1,200 and $1,500 per square foot of space. In the last several months, several high profile expensive developments have been proposed for Bal Harbour. While approval for these proposed projects is still pending, it has become quite clear that this community is the new, hot commodity.
The housing boom has also driven economic growth in the community. In addition to the aforementioned new shops and restaurants, the Bal Harbour Club recently sold for a total sum of $225 million. Ryan Shear, who is the managing director of Property Markets Group, has attributed the new, sudden desirability of Bal Harbour to two primary factors:
One is the lack of supply — obviously there’s only so much oceanfront in South Florida, and the other factor has been the South American buyers — these aren’t New Yorkers or Americans — in all these buildings.”
will certainly be watching the new developments in Bal Harbour with an eager eye. Already, home prices in Surfside, a barrier island just north of Bal Harbour, have begun to rise as new buyers seek out homes. In 2011, growth in Bal Harbour condos was stagnant, but its fortunes appear to be on the upswing now, and it will be with baited breath that others await to see just how far the community rises.