Miami’s Aston Martin Residences recently announced that the 391-unit building has surpassed 90% of sales, breaking its own records for the January and February closes as prices continue to trend higher.
The combined two months closed more than $100 million in sales, with more still under contract, leaving less than 40 units available in the building, said Alejandro Aljanati, CMO of G&G Business Developments, the company backing the collaborative project. with luxury automaker Aston Martin. Given the increase in demand, the building’s triplex penthouse, which is the only triplex penthouse in an Aston Martin building, increased its asking price from $50 million to $59 million. The price still includes the rare Aston Martin Vulcan as part of the sale.
“It’s called rarity and rarity. There is no inventory,” Aljanati said. “The whole building is getting bigger [in] prices. So even if you bought an apartment six months ago, you will make a very good [profit].”
Miami’s overhaul housing inventory has fallen over the past year, as the following chart from the Housing Assessment and Search Company MillerSamuel shows. Data through the end of last year shows that if homes were to continue to sell at their current rate, months of supply available is just three months, compared to around 10 to 12 months if you look at a year or two ago.
Prices have risen steadily over the past year, which is common when supply is low. This table of the Redfin Data Center shows the sale prices of condos in Miami over the past few years.
Aljanati comments that there has been a change in the overall buyer profile since sales began a few years ago compared to recent months, saying there has been an increase in the number of US residents buying the units, despite having aroused strong international interest when it was initially announced. “The pandemic has brought about a change in lifestyle. As a result, people seek to live in large spaces. So luxury also means spending time in a better environment.
This surge in demand preceded the sweeping of the building at the International Property Awards, announced earlier this month. The residences received top honors in all eight categories, including Best International Apartment/Condominium and Best International High-Rise Residential Development. Due for completion by the end of this year, the Residences will be the only building in Downtown Miami to feature a marina capable of accommodating deep-water yachts, optional personal butler service and a range of amenity offerings spread over four floors, said to be one of the largest dedicated indoor amenity spaces in the city.
Miami’s housing market has such huge pent-up demand that this momentum will likely carry it through rising interest rates. The limited amount of land presents a constant limit to the amount of viable housing in desirable locations and the ongoing battle for better and better amenities will continue to drive interest. Even though prices have already seen strong increases, the combination of all these forces means that prices should continue to rise without much of a slowdown.