Old Condo vs. New Condo – what do you mean, you might marvel?

It’s a valid question, though, and anybody dealing with buyers and sellers today will run into the same question. Buyers will ask whether they should buy an existing condo or a new development, and sellers want to know how we compete and market and sell their property ahead of developers’ latest units.

Pending Construction in Miami

It only takes a quick search on the Internet for Miami condos for sale, and one will be inundated by the myriad of real estate listings offered, both existing units and brand new developments. Some of the full-page local and international media ads look like two spheres colliding, as new developments try to impress and sway buyers through their doors with crazy gimmicks and pioneering amenities.

As of this editorial’s posting, in the tricounty South Florida region, 176 condominium towers are planned with more than 22,000 units being offered for sale by real estate developers, with most of them in the Miami area. Some of these new developments feature innovative, open-space floor plans, stunning features and luxurious amenities, which usually had been reserved for five-star hotels.

Those new developments attract a new breed of buyer, from New York, Mexico, Venezuela, Argentina, Russia, Europe, and lately, even China. Cash-laden buyers are scooping up luxurious condos, and as one online blogger described it so aptly, millionaires are using Miami area real estate as their currency – basically, a bank for the elite with a beach.

Many of the new condo developments report very strong sales, with a number of them reporting that they are 70 to 80 percent sold out.

What About Existing Units?

With so many new condo developments being created, what does that mean for existing Miami condos for sale, sellers and buyers alike ask? What about those nearly 49,000 condos that were built in the first half of the last decade?

I always let the facts speak for themselves. In the third quarter of 2013, existing condos sold after only being on the market for an average of 46 days for 96.7 percent of the asking price, according to the Miami Association of Realtors. There were 1,352 existing condos that sold in Miami in the month of September. Also, the median sales price for a Miami condo rose 26.6 percent, and at the current sales pace, there is a 6.3 months’ supply of condos, or an 11 increase in supply compared to the same period a year ago.

So both types of properties sell, the old condos and the newly developed condos. What do I recommended when I get asked old vs. new? Well, it really depends on your budget, I reply. New condo developments, on average, cost 30 to 40 percent more than existing real estate for sale. Why is that? Construction costs are up. Labor, building materials and supplies have increased since the last construction boom, and then, don’t forget, all those new condo developments emphasize grander, more spectacular features and amenities that simply cost more to create. Many Miami developers also have hired internationally acclaimed architects to create design masterpieces that have the individual in mind and the overall condo lifestyle quality.

New Today, Old Tomorrow

On the other hand, what’s new today will be old tomorrow. If we would revisit Miami real estate in 10 years from today and compare what’s being built presently with what will be under construction then, there will also be an evolution in style, design, amenities, features and especially technology.

It is good that we evolve, and that developers hire innovative architects who revolutionize the housing status quo and set new standards and higher goals. Just this morning, while writing this article I read that actor Leonardo DiCaprio bought for himself a new condominium developed under the motto of “wellness real estate,” a new trend which basically touts the healing powers and life-extension capabilities when living well, and has been developed with input from Columbia University Medical School and the Mayo Clinic.

What is wellness real estate again? Imagine over 50 built-in wellness amenities, including vitamin C-infused showers, purified air and water, posture-supportive flooring, a kitchen herbarium, dawn simulation provided by a proprietary Circadian lighting design and access to your very own Zen wellness concierge.

All these new innovations, designs, trends and new building standards keep things interesting for me. and I love to be a Miami real estate professional and share my knowledge with my clients.

Old condo vs. new condo – what do I tell my sellers? How do we market ahead of the developers’? People buy what they can afford, and like architecture, design and amenities evolve; we also progress as people. Every market price segment has its buyers moving up to reach their next level of comfortable living. And all those colorful and glossy developer ads are actually great – they put Miami, Miami Beach, Surfside, Bal Harbour, Sunny Isles Beach, Hallandale Beach and Hollywood Beach on the map, and more people become aware of our beautiful, world-class Magic City. We market and sell to those who just discovered Miami for whatever reason, may it be high taxes in New York or the simple fact that U.S. real estate is still a global safe haven.

Katerina Brosda is a top 0.5 percent sales producer and recipient of the Masters Diamond Award and the Double Centurion Platinum Producer Award, prior to founding Brosda and Bentley Realtors, LLC, a boutique luxury real estate sales and international marketing company in North Miami Beach.

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