By Peter Zalewski
CondoVultures.com
Miami Heat all-star center Shaquille O’Neal and internationally renowned singer Julio Iglesias have each slashed the asking price on their respective waterfront mansions by enough to land them in the Vultures™ Database.
Iglesias has dropped the asking price on his eight–bedroom and six bathroom mansion in Indian Creek Village by 22 percent to $25 million from $32 million. The 10,328-square-foot place has languished on and off the market since October 2004.
O'Neal’s price reduction on his eight-bed, 11 bath Star Island mansion was a bit more controlled. Shaq shaved $3 million off from his $35 million asking price. The basketball center bought the home in 2004 for $18.8 million.
Even if Shaq sold his mansion for less than the current asking price, the future hall of famer would still realize a significant return on his original investment regardless of any upgrades that he made.
The problem that Shaq, Iglesias, and everyone else is having in South Florida’s ultra-luxury market (over $5 million) is the buyers and the sellers both have the financial wherewithal to remain firm even with the worsening market conditions.
This situation is causing a standoff where neither the buyers nor the sellers want to compromise. Sellers still think their places are worth what they were during the peak of the market while buyers are comfortable waiting patiently for discounts on the quality product.
The Vultures™ Database is now tracking 36 ultra-luxury residences in Miami-Dade and Broward counties. The average price drop of an ultra-luxury residence in the Vultures™ Database to date is 14 percent, or $1.47 million, with an average time on the market of 448 days.
The average revised asking price for an ultra-luxury residence in the Vultures™ Database is $8.42 million, down from $9.89 million. On a per square foot basis, the average revised price is $1,204.45 compared to an original average price of $1.402.95.
The Vultures™ Database tracks properties in which the asking price has been slashed by 10 percent or $100,000 and/or been on the market for at least 100 days. The database is currently comprised of more than 2,000 residential properties, up 32 percent from the 1,700 units on June 30. All of the properties in the database are all located east of I-95 from South Miami north to Fort Lauderdale.
Peter Zalewski is a principal with Condo Vultures™ LLC (a consulting firm) and the qualifying broker for Condo Vultures™ Realty LLC (a licensed Florida real estate brokerage). Peter can be contacted at 800.750.0517
Copyright © 2007, Condo Vultures™ LLC
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