Looking to capitalize on South Florida’s booming waterfront mansion market, sellers of vacant waterfront lots in Miami and Miami Beach are listing their properties for prices that appear to bend reality.
Sellers have been told that many wealthy people are moving from California, Chicago and New York, big CEOs looking for properties like the billionaire Ken Griffin, who paid $106.9 million for a 4-acre Coconut Grove waterfront estate this summer.
But thanks to rising construction costs and timelines dampening demand for vacant lots, more than having a large waterfront lot is needed to entice wealthy buyers currently shopping in Miami-Dade County. For example, land listings with approved plans are more desirable than those without because the approval process in a city like Miami Beach can take so long.
Nobody wants to wait. You need to be a primary homeowner living six months and a day in Florida to have the tax advantage, and, in this case, turnkey-ready properties are preferred.
Some sellers have started adjusting their prices, while others are still seeking “outrageous” prices. We’ll see who is making the best bet.
(source: therealdeal.com)
