The first quarter of 2024 was a remarkable period for South Florida's real estate market, the only region among the three Alpha Markets to record an increase in the number of trades compared to Q1 2023. The number of trades rose by 30% from 51 to 67 trades, although the overall trade volume remained flat, at $1.1 billion. This apparent paradox is explained by a shift in the types of properties being transacted. While the price per square foot for both lot size and building area has increased, the growth in trades came primarily from transactions in the $10 million-$20 million price range, which grew by 70% year over year, from $420 million to $713 million. In step, the average sale price decreased by over $6 million compared to Q1 2023, to $16.9 million. This indicates that more properties at a lower price segment are being facilitated, resulting in increased transaction quantity without a corresponding rise in volume.
The shift towards more inland trades is a key factor in this trend. Inland properties recorded a 93% increase in trade volume from $183 to $355 million, and a significant 118% increase in the number of trades, from 11 to 24. “This marks a notable shift from previous years, when waterfront properties dominated the market, especially as South Florida gained alpha market status only in 2020”, notes Luiza Chiminacio, Portfolio Manager at Bespoke.
Traditionally, properties that transacted over $10 million were primarily waterfront estates, and many of these inland properties trading
this quarter were likely valued significantly below $10 million in 2019. “While the average price in South Florida dropped this quarter compared to last year, this quarterly drop actually made us more optimistic for the future of the region,” explains Zachary Vichinsky, CEO and Founding Partner of Bespoke. “The popularity of inland properties this past quarter reflects a more balanced and mature alpha market, where alpha status is achieved not just by the exclusivity of waterfront locations but by the quality and potential of inland properties. This is particularly remarkable given that in 2019, there were less than 100 $10 million+ trades the entire year, whereas now we are averaging about 250 per year over the last two years.
To be sure, waterfront trades still performed strongly as well, accounting for 46% of all transactions in Q1 2024, totaling 31 trades. This segment had a 13% increase in trade volume, from $437 to $535 million, and a 24% increase in the number of trades compared to Q1 2023, from 25 to 31.
A standout moment from this past quarter was Bespoke's involvement in record-breaking transactions in the region. Bespoke facilitated the in-contract sale of 18 La Gorce Circle, Miami Beach, with a last asking price of $132 million. The property, situated on the prestigious La Gorce Island, is a nearly 3-acre assemblage comprising four parcels, each with its own private dock. The total area spans over 124,000 square feet. This transaction sets a new record, surpassing the previous Miami Beach high of $107 million. This marks Bespoke's third $100M+ trade in three years, cementing our status as leaders in the national $100 million+ market.
