With the first quarter of 2011 behind us, we continue to experience increased activity in the real estate market on Singer Island. There were 45 oceanfront condominium re-sales in this time period, about the same number as the last quarter of 2010. About 25% of the units sold (11) were short sales. Of the 11 short sales, 5 were condo/hotel units at the Resort.
For analysis purposes, we separated units sold between those built from 1973 to 1989 and those constructed since 2003 (no new building were completed in the 1990’s). Although completed in 2007, we placed the condo/hotel units at the Resort in a separate category since the vast majority of the transactions are short sales or bank owned and their results tend to skew the overall averages.
The 7 remaining properties were Resort condo/hotel units, all either “short sales” or “bank owned” selling at $163/SF. The Resort currently has 17 condo/hotel units under contract, of which 15 are short sales.
The square foot pricing on the older units has remained fairly constant since last year (2010), but the pricing on the newer units has decreased from last year. As a reminder, this data represents re-sales; developer sales at Ocean’s Edge and the Ritz Carlton Residences remain strong with square foot sales at $471/SF and $494/SF, respectively.
We expect to see increased sales activity in the next couple of months as our Seasonal residents and visitor purchase properties before heading back north for the summer; traditionally sales peak in this period before leveling off for the summer months.
In addition to the real estate market on Singer Island, let us update you on the major improvement projects.
First, the N. Ocean Drive (State Road A1A) beautification project continues to progress with construction taking place the full length of the island from the Ocean Mall north past Water Glades condominium. The majority of the storm drainage pipe has been laid and west side curbing has been poured at the south end of N. Ocean Drive. Sidewalks are being poured at both the north and south ends of the island. It will be interesting to see if the end of 2011 completion date is achieved. The complete of this project will greatly increase desirability (and property value) for the island.
Second, the Singer Island Breakwater Project has been terminated by the Palm Beach County commissioners. After 15 years in the planning and permitting stages, the commissioners cited environmental concerns and technical doubts as the reason for ending the project. The vote spelled the end of similar projects that had been planned from Jupiter to Lantana. The project’s funding had been set, with money allocated by the state, Riviera Beach and Palm Beach County. This project had the greatest impact on the island’s north end residences; we will need to wait and see what alternatives are proposed.
Jeannie and I wish to thank our valued customers’ for their continued support in a down Real Estate Market. The Walker Real Estate Group sold over $26 million dollars in Real Estate in the last 12 months; and has become trusted “advisors” in the Real Estate Community.
In recapping the Singer Island real estate market performance over the past 12 months, clearly the sales have been on properties priced for today’s market conditions.
For more information on specific condominium sales activity contact Jeannie at 561-889-6734 or email her at [email protected].