F
ive years ago, a $120 million home sale in Miami Beach would have been unimaginable. However, the pandemic supercharged the market across South Florida, drawing billionaire hedge fund manager Ken Griffin to the area. Home prices skyrocketed as the demographic shifted towards younger and wealthier buyers. Despite a brief slowdown last summer when sellers became unrealistic, the market for waterfront homes has rebounded in recent months.
In October, David and Victoria Beckham paid $72 million for a mansion on North Bay Road, sparking a flurry of activity on the street. Other neighborhoods like Star Island, Palm Island, Hibiscus Island, and La Gorce Island are also experiencing an upswing. Notable sales include an oceanfront home in Altos del Mar selling for $36 million and a mansion on Palm Island trading for $45 million just under a year after its previous sale.
Billionaire developer Vlad Doronin's waterfront Star Island estate sold for $120 million, setting a new benchmark for Miami-Dade County. Douglas Elliman agent Oliver Lloyd represented the buyer in the Palm Island sale and notes that many big-name buyers are now actively searching for properties. The buyers are often tied to prominent individuals or companies, with some even using straw buyers.
The market's momentum is attributed to several factors, including price reductions last year that brought buyers back into the fold, followed by bidding wars for previously unsold properties. With uncertainty surrounding the election now lifted, brokers say deals are moving forward at a rapid pace. As inventory disappears, buyers are increasingly seeking off-market listings, which offer advantages such as privacy and selectivity.
Spec developers like Todd Michael Glaser are also returning to the market, with some even considering building spec mansions that could fetch $300 million or more. The Corcoran Group's Mick Duchon notes that a few properties are asking over $80 million off-market, with developers among the prospective buyers. As celebrities continue to buy homes on North Bay Road, it's the billionaires and developers who are now driving the market forward.
