Naples Ultra Luxury High-Rise Condo Update
Good Day, Naples Friends! Today, I’m going over all of the significant changes we’re seeing in the Naples ultra-luxury high-rise market and what it means to you if you’re buying or selling a Naples ultra high-rise condo. Buckle your seat belts because there’s a ton of information to convey!
The Naples Ultra Luxury High-Rise History
The Naples ultra-luxury high-rise condo market was once considered a property listed north of five million. Today, it’s considered condos north of $10,000,000, and with what’s coming down the pike, that number may jump dramatically again in the not-so-distant future. I think a tiny group of buildings once held the private title of “ultra-luxury,” with Regent at Park Shore as the absolute ultra. The way my clients responded to Regent always seemed to be slightly more enthusiastic compared to their responses in other buildings. That was until 2017 when Seasons at Naples Cay was able to land a new sales record back in 2017 when #2201 sold for a Collier County record-breaking $14,750,000. I remember thinking, “Wow, that agent has no idea what they’re doing.” until two of my clients wanted to see it.
Regent would take nearly five years to reclaim its crown with a sale in 2022 for $15,500,000. One year and seven months later, Windsor at Bay Colony robbed Regent again with a record-breaking sale last August (historically one of the slowest months of the year.) The current record holder belongs to Windsor Penthouse #19, with a sales price of $19,500,000, procuring a contract after 80 days on the market.
The Current Ultra Luxury High-Rise Market In Naples
Windsor better not get too comfortable with that royal record-breaking title. Other high-rise condo buildings are vying for position, and I’m not even talking about the new construction. Today, two units are available with prices north of the current record holder. You can find them in Aqua at Pelican Isle and Mystique at Pelican Bay.
A new listing will be hitting very soon, sure to blow the dust off nearly every pre-existing condo offering that has ever existed in Naples, Florida!
Fast Market Facts
There are currently 4.33 years of ultra-luxury inventory on the market today. There are 13 condos for sale, and only three were sold during the past year. My buyers who buy with their heads just fell out of their chairs. Does that mean there will be more forgiveness during negotiating? Maybe, but this is the ultra-luxury market where the overwhelming response to a low offer is, “We’ll just use it ourselves.” Of the condos priced north of 10 million that sold last year, only one negotiated down off their price. That buyer in Le Rivage got a 15% discount. The Regent buyer paid full price, and the Windsor buyer paid $505,000 more than the full list price. It doesn’t hurt to try! About 1/3rd of the market has figured out that their original list prices were a little overly ambitious by reducing their price. That can mean big fun for you if you make yourself known. Ask me how!
What’s the average price per foot? Yeah…no. There are too many factors to consider when determining the value of properties of this magnitude. Beachfront vs. not on the beach but beach amenity vs. no beach amenity. The building needs to be remodeled vs. a new building. Ask me how to determine a real value for a property and how to get inside the Seller’s head!
For those of you waiting for the market to drop, you should know we are seeing more and more really unique properties selling and staying off the market and turning into legacy properties. Just the other day, I was talking with a colleague regarding a unit she sold more than fifteen years ago. I’ve had somebody fantasizing about it for close to a decade. She once said it would be available the day they carry the owner out of there. This week, she said it has already been determined the condo will go directly to their children who also love it. Some of these properties may be available once in a lifetime. Get it while you can!
New Ultra Luxury Condominium Offerings
I’m sure some of you can hardly be excited about anything I’ve discussed thus far, considering new construction has touted numbers far past anything I’ve mentioned. The Four Seasons Project is rumored to have captured the interest of a seventy-five million dollar buyer and several fifty million dollar suitors as well. We should know more once those buildings close (currently slated for the end of 2026.)
We’re not talking mid-rise condos today, but if we were, I’d have to congratulate Rosewood Residences for capturing the heart of a thirty-million-dollar penthouse purchaser.
New construction for condo projects is just heating up, with several new projects that have already launched or are on the horizon. Many of these projects are not being marketed on the Naples Area Board of REALTORS MLS system, like Epique and Kalea Bay. If you want to stay updated on the latest new construction happenings, contact me today!
Which Luxury Condo Has The Most To Offer
Choosing a luxury condo should be somewhat straightforward, but it isn’t as much as people think. Many of you are no strangers to buying real estate and have grown accustomed to shopping online, and in many circumstances, you may be giving too much credence to online photos and opinions of people who aren’t experts on the condo market. Smart buyers know to lean on a buyer’s agent to help them understand the ins and outs of purchasing. For example, earlier this week, I spoke with a lady about a condo she saw on the market. She asked all her questions and seemed to like all of my answers. At the end of the call, I mentioned a crucial fact she had not yet considered, which made her pause on pursuing the property. I saved her an enormous amount of time and even more money.
Many luxury condos in Naples come with a set of perks that might be discussed in the remarks of the listing but sometimes are not out of privacy for the current residents. Sometimes, these details can be easy to miss. These perks can change how you perceive the value of the unit. Private garages, pool cabanas, boat slips, rooftop decks, and more can all come into play, and if you haven’t seen what it is, you at least want to talk to somebody who has or can get you into the unit and discuss these perks in detail.
Condo Fees and Unexpected Assessments
After new legislation was announced, A milestone inspection is now required for buildings that are at least three stories high once the building turns thirty years old (25 years or more if located within three miles of the Florida coastline). All of these buildings must perform this inspection by December 2024. Additionally, a structural integrity reserve study is also required. For buildings that were already doing a great job of reserving for structural improvements, this new legislation is no big deal, but for buildings that are required to bolster their reserves, quarterly and annual fees are becoming quite a problem. Do yourself a favor and contact me regarding these matters. Based on your purchasing objective, I can help you navigate toward or away from buildings. Plenty of articles are written specifically to talk you out of purchasing a condo in Florida. It’s worth a call to determine if those articles were correct or just more politically charged hooey.
Don’t forget to consider the condition of the common areas in a building. Some of my favorite buildings in Naples are due for a refresh. Depending on the decision-making in each building, those costs and inconveniences can be extraordinary. I will help you factor in these possibilities as I help you navigate to your next purchasing decision, but I don’t guarantee anybody else will be as forthcoming.
Insuring Luxury Beachfront Condos
Another sticking point with buyers over the past year has been the fear of what insurance will cost. Those same friends talking about crazy fees are also doing their best to spook you with insurance rates. Friends, when you purchase a condo, the insurance for the building will be paid through your quarterly or annual fees. I can tell you what those fees are during our first phone call. You share that with every resident in your building. You may also decide to get insurance on your personal contents. If you are housing a multi-million dollar art collection or wildly expensive wine collection, insurance costs might surprise you, but if you’re insuring furniture replacement and the cost to redo the inside of your unit, you may find this cost to be substantially less than what you were led to believe.
I hope you enjoyed my latest drop about the Naples ultra-luxury condo market. If you would like to know the value of your condo. or are ready to capture one of our most fabulous properties, contact me today!
Shannon Lefevre, PA
Your Naples Smart Girl!
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