Miami Luxury Real Estate’s Divide: Why $10 Million Properties Sell Fast While $1–5 Million Units Linger

Written by:

Steve Marcinuk

Date:

09 Dec 2025

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Despite headlines suggesting a slowdown in Miami’s luxury real estate, the market is not experiencing a uniform decline. Instead, it is splitting into distinct tiers, with ultra-luxury properties above $10 million selling rapidly while homes in the $1–5 million range face mounting inventory and sluggish demand.

Joelle Oiknine, Senior Global Real Estate Advisor at One Sotheby’s International Realty, says this divide reflects a specific pattern in buyer behavior that is reshaping expectations for high-end real estate in South Florida.

Clear Divide by Price and Building

Oiknine emphasizes that Miami’s market cannot be analyzed as a single entity. “You can’t do Miami-Dade as a whole, or Broward as a whole, or all of Florida as a whole, because it’s price range specific, area specific, and in very many areas, building specific,” she says. With over two decades in Miami real estate, she observes that properties above $10 million continue to attract buyers, while the $1–5 million segment struggles with oversupply.

Industry data supports this segmentation. Reports indicate about 19 months of inventory in Miami’s luxury condo market, but Oiknine says this figure applies mostly to units priced between $1 million and $5 million. “If you look at the one to 5 million price range, yes, there’s a lot of inventory. I think 19 months will probably be about right,” she confirms.

Ultra-Luxury Properties Remain in Demand

The $10 million-plus market follows a different set of rules. Oiknine explains that these buyers are often business owners or executives relocating their companies. “Those are the people who own the companies, who are coming in and either buying a huge home here or moving their company. And they don’t care if it’s 10 or 20 or 30, they’re buying,” she says. Her team recently closed a $30 million transaction in which the buyers were motivated by the specific unit, not the price.

Trophy properties in top-tier buildings, such as the Four Seasons, continue to command high prices and move quickly. “In certain buildings, like the Four Seasons, you have properties that are selling at 50, 60 million. We’re talking about now 4,000, 5,000, 6,000 a square foot, and they’re moving. And those properties sold in pre-construction for maybe 2,400 a square foot,” Oiknine says.

Assessment Costs Pressure Lower Segments

The inventory buildup in the $1–5 million segment is partly driven by new building assessments following the Surfside condo collapse. These assessments, which can reach $100,000 to $200,000 or more per unit, are forcing some long-term owners to sell. “If somebody bought their unit for 80 or 100,000 thirty years ago, they can’t afford to pay this assessment. But a new buyer will come in and gladly buy a lower price unit and pay the assessment,” Oiknine explains.

This situation creates an opportunity for buyers willing to manage assessment costs, but it also explains why inventory is concentrated in older buildings at this price point.

Cash Dominates Ultra-Luxury Sales

A key factor sustaining the ultra-luxury segment is its reliance on cash transactions. “99% of our deals are cash,” Oiknine says. This eliminates financing hurdles and makes assessment costs insignificant for buyers purchasing at $10 million and above.

Implications for Miami’s Luxury Market

The current split signals that Miami’s luxury market now operates as two separate ecosystems. Lower-priced luxury units are weighed down by assessments and financing issues, while the ultra-luxury tier remains buoyed by global cash buyers seeking high-value assets. This divide challenges broad market assumptions and underscores the need for detailed, price-specific analysis.

About the Expert

Joelle Oiknine is Senior Global Real Estate Advisor at One Sotheby’s International Realty, specializing in Miami’s luxury coastal markets. With 23 years of experience, she brings analytical and international sales expertise to high-end property transactions.