Condos that was built more than 30 years ago becomes some of the most popular properties in Zuid -Florida, with recent data that shows that they are selling faster than newer units – often for less than half the price.
One July Report by Miami Realtors Discovered that Miami-Dade apartments in buildings of 30 years or older spend less time on the market than those in buildings 29 or younger-62 days compared to 79.
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The trend is linked to affordability pressure, new regulations and redevelopment options, according to Diffenderfer – that specializes in older Condo sales – and Tukh, whose company leading redevelopment of older apartments in luxury projects is.
Condominium construction is shown in the Brickell Financial District in Miami. (Getty Images)
“People feel very comfortable with the new law that came into force in January and that requires older buildings to repair and maintain their structures,” said Diffenderfer, referring to the so-called Condo 3.0 account.
The law followed the Collection of June 2021 of the Champlain Towers South Condominium in Surfside, Florida, in which 98 people were killed and aroused changes in the safety rules of the state. Federal and State Researchers later stipulated that the tragedy came from serious structural shortcomings, especially in the pool deck, where concrete was insufficient and reinforcement steel had been corroded.
“The price of new construction and new buildings is so much more than older buildings that … the market speaks and many people cannot afford those new buildings,” he continued. “In Miami-Dade County, the recent average selling price of an apartment with 1,300 square foot, two bedrooms and two bathrooms in a building of less than 10 years is $ 1.15 million … [in an] Older building … is $ 505,000. So you can see that it is less than half. “
Renovations also take into account the value of older apartments: “If you buy an apartment of $ 700,000 and you will be there $ 300,000, you are still a million dollars versus $ 2.5 million for new construction of the same flat apartment in Miami Beach.”
BH Group, on the other hand, has worked to scoop older buildings for final demolition for new luxury builds. According to the developer, older apartments attract investors when considering market demand and land scarcity.
“Every investment we are watching, we start with location,” said Tukh. “And many of these older apartments are at excellent locations. There is no longer land in these main markets. So we have to look [for] Other ways to create extra value in those markets, and redevelopment is one of them. “
Miami Beach, Florida, in an aerial photo, with Collins Avenue, Indian Creek Imperial House Condominium Building and the Alexander Oceanfront Resort. | Getty images
“Redevelopment is an option, especially if it is not feasible to keep trying to maintain the property that is functionally aging or simply does not have the density that allows the new zoning … Certainly, the new regulations have an impact for the owners and boards of the older communities, but you also have a decent payment day.”
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Tukh also pushed back on every criticism of older relocation and affordability of the resident of Condo in the southeast of the sunshine state.
“Florida, South -FloridaIt is still affordable, “he argued.” You may not get ocean fronts, but you can still get a neighborhood of good quality, safe, good schools. Florida has many things going on: safety, pro-business, no income tax from the state … There has been a lot of influx of people and it continues. “
The Flato market of South Florida is also fed by continuous migration to the region. Between 2020 and 2024, the population of Florida grew by around 8.2%, the fastest percentage in the nation, which added nearly 1.8 million inhabitants. The Miami Fort Lauderdale-West Palm Beach Metro Area included the provinces of Miami-Dade, Broward and Palm Beach-Gerang arranged in the top three American regions for population growth from 2022 to 2023, largely driven by international migration, according to the American Census data and Miami Raltors.
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Diffenderfer strives to break myths about the safety of older apartments and the number 1 misconception that they are a ‘money well’.
“The biggest thing is that it is a money …, however, there is safety at the end. There are people who think they are unsafe and you really have to go back and look – only one building has collapsed. There are tens of thousands of condominium buildings in Florida on the water that are old, and only collapsed,” the compass remedy.
He predicts that trust will grow as the repairs are completed: “This new law also requires that reserves are introduced so that these buildings are prepared for future repairs. As soon as this first huge financial settlement happens, I think it will be great for the market. All buildings will have the feeling that they are safe, that they are financially stable.”
For buyers, the broker has optimism that older apartments represent affordability and opportunities, while on the developer’s side they illustrate the future of the Skylines in South Florida.
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“The future is so rosy, we have to wear shades now,” Diffenderfer noted. “The old apartments, the chance is so great … As soon as these repairs have been done, it will be a no-brainer and I think you will see the value of older apartments much closer to newer apartments.”
“We recently closed on three redevelopments of older condominiums … The future looks very rosy,” Tukh said. “There are many older associations and cooperatives that are great goals for redevelopment. So we are very bullish on the market.”
