What is the Effect of Covid-19 on Continuum on South Beach Condos for Sale?
- April 2nd, 2020
Continuum on South Beach and Covid-19 | What is happening now?
Many readers ask us about the effect of Covid-19 on Continuum condos for sale. Although Continuum on South Beach has many primary residents who use the condo all year round, the building is pre-dominantly an investment condo or a condo for second or third home owners. Unlike primary markets where there is a true need from families to find a suitable home, the investment market is more driven by opportunity and therefore less elastic when it comes to economic change.
Unit 606 in the South Tower represented the highest sale per SF in the last 6 months. This unit sold for $5,550,000 or $2213 per SF
What is the impact of Covid-19 on the Continuum on South Beach Sales Numbers?
The reality is that with the strict regulations around Covid-19, the condo shopping process has slowed down to almost zero activity. Many Miami condos are not allowing open houses or showings anymore and buyers are often hesitant to go and visit properties (specially for foreign and out of state buyers).
While many will postpone their condo investment, others might be affected by the virus or the stock market and therefore put a potential condo purchase on the back burner.
Inventory at Continuum on South Beach is already quite high at the moment after several quarters of low levels of inventory. The summer months at Continuum Miami Beach are always rather slow in terms of sale so we are preparing for an extremely slow year at the condo, which will likely start picking up again around November before the start of South of Fifth’s high season.
Continuum on South Beach Sales in Q1 2020
Looking at Q4 2019 and Q1 of 2020 we see a total of 7 condo sales and no pending deals. This is a decrease from 10 closed sales in the same period the year before (Q4 2018 and Q1 2019).
The average price per SF is higher this year, but that does not really tell the whole story. This year we have not recorded any small 1 bedroom sales, which was the case (3 sales) in Q4 2018 and Q1 2019. Excluding these more affordable 1 bedrooms from the average the prices in this period are actually $100 per SF less than in the previous period.
This last half a year we saw a 11% discount from original list prices and 9% discount from final list prices. While in previous quarters the months of inventory were closer towards the 20 months with around 40 months max, this season we see a much higher inventory.