Top 10 Sales in Boca Raton - May 2021

Because so many of you are asking... we are reporting the top sales in Boca Raton and the underlying market conditions contributing to our shifting real estate landscape.

The Boca Raton sales leaderboard was dominated by single family homes Royal Palm Yacht & Country Club and large scale condos for the month of May. Buyer demand and velocity continue to increase in Royal Palm; meanwhile inventory has hit an all-time low, resulting in home prices continuing to rise in the neighborhood. Meanwhile, luxury condominiums in full-service buildings with layouts of 4,000 sq' or more have made a comeback after a pandemic pause accounting for nearly a third of our leaderboard.

$15,000,000

320 S. Maya Palm
4 bedroom | 6 bathroom | 7,753 sq. ft.

$9,600,000

429 E. Alexander Palm 
6 bed | 8 bath | 8,082 sq. ft.

$7,800,000

800 S. Ocean Blvd. PH-6
4 bed | 5 bath | 5,448 sq. ft.

$6,764,250

252 S. Silver Palm 
5 bed | 8 bath | 7,169 sq. ft.

$6,000,000

4750 Sanctuary Lane
5 bed | 7 bath | 7,065 sq. ft.

$10,475,000

251 W. Coconut Palm  
7 bed | 11 bath | 10,312 sq. ft.

$9,000,000

289 W. Coconut Palm
6 bed | 10 bath | 9,987 sq. ft.

$7,150,000

499 Royal Palm Way
5 bed | 7 bath | 7,095 sq. ft.

$6,250,000

2500 S. Ocean Blvd. #703
4 bed | 6 bath |4,494 sq. ft.

$6,000,000

Alina - Penthouse 3
4 bed | 6 bath | 4,579 sq. ft.

The Boca Raton top sales report is compiled from MLS and Palm Beach County public records data representing sales from multiple agents and brokerages as well as private sales with no broker involvement. For more information, call 561-500-PINK.

New Construction Single Family Homes

There’s a quote attributed to Mark Twain that always makes me smile... “Buy land, they aren’t making it anymore.”

For most people “New Construction” brings to mind images of shiny new condominium towers. While we have an unprecedented assortment of beautiful condos, there is another major luxury real estate submarket emerging in the Boca Raton and Delray Beach coastal corridor - New Construction Single Family Homes.

While there are a handful of new developments offering single family homes in the western suburbs, the real story is the emergence of new construction estate and waterfront homes east of Federal Highway. In the last year, there have been 95 newly built homes sold and closed here at $1,000,000 or more; with total volume of $363,320,283. Those located east of Federal Highway accounted for 41 of those sales and $243,105,387 of the volume.

The original build era of most of our eastern coastal areas was the 1960’s and 1970’s. At that time the area was very seasonal and the preference at the time was for ranch-style, single story homes of less than 3,000 square feet. Fast forward to present-day and the population of the region is composed of increasingly affluent consumers with a taste for new luxurious home options. In certain neighborhoods, the turnover has been dramatic. We are seeing land values along the corridor skyrocket as the demand for land from both individuals looking to build custom homes and developers with a spec home program as their primary business model dramatically outpaces supply.

Not all neighborhoods are equal; each has a unique character and value proposition. Let’s look at some of the top neighborhoods for new development homes.

Royal Palm Yacht & Country Club

Just across the Intracoastal Waterway at the southeastern corner of Palm Beach County lies Boca Raton’s most prestigious private country club & yachting community, Royal Palm Yacht & Country Club. Renowned for embodying the best of the Florida coastal lifestyle RPYCC is known internationally as one of Florida’s most coveted Country Club communities. 

690 custom estates span 749 original home sites that range from stately Mediterranean revival mansions to contemporary Florida masterpieces. Roughly one-third of the homes are located on a canal or the Intracoastal Waterway and feature dockage for vessels ranging from 50’ (15m) to over 165’ (50m). This is one of only two subdivisions in Boca Raton with natural gas on every street and underground utilities.

Perhaps the most unique aspect of this subdivision is that it is nestled in and around an ultra-exclusive private yacht and country club; yet unlike every other Boca Raton country club community, membership is not mandatory or related to a home purchase. 

The Sanctuary

An ultra-exclusive enclave of custom estate homes, The Sanctuary stands out as the most private and secure among the luxury waterfront communities in the area.

92 custom estates, covering 107 original home sites in The Sanctuary, were first offered in 1978 and the newest homes are under construction. Roughly two-thirds of the homes are located on a canal or the Intracoastal Waterway. Most of the homes feature private docks that can accommodate boats ranging from 30 -100 feet in length on deep water canals. In addition, there is a full-service community marina available.

Golden Harbour

Located just off of 5th Avenue in East Boca Raton, Golden Harbour is just down the street from Mizner Park, Royal Palm Place, and the beaches. Originally developed in the 1960’s comprised of single-story ranch-style homes, much of the real estate in Golden Harbour has been completely renovated or rebuilt with custom-built waterfront estates.

Sun & Surf

Nestled among the sandy white beaches, the oceanfront Red Reef Golf Course, Florida’s natural tropical waterways, and downtown Boca Raton lies the most perfectly-located waterfront community - Sun & Surf of Boca Raton.

Located just north of Palmetto Park Road along Ocean Boulevard/A1A, Sun & Surf is a private community comprised of 81 luxury estate homes. The majority of the residences in Sun & Surf are located on waterfront. Residents enjoy panoramic views of the stunning tropical backdrop from every angle. Even the most discerning mariner will appreciate Sun & Surf’s convenient location, just off the Boca Inlet, providing access to the open waters of the Atlantic Ocean. 

Boca Villas

If a walkable location and single family home is of interest, then Boca Villas is one of the best options. Located directly in the center of downtown Boca Raton, Boca Villas is a serene single-family home community initially built in the 1950s. In addition to being walkable to Mizner Park and all of the best restaurants in town, this enclave is about one mile from the beach as well. Boca Villas is truly in the middle of the best of Boca Raton. 

New 

Is There A Crash Coming In 2021?

Many Boca Raton locals have posed the question as to whether our robust South Florida real estate market is some kind of a bubble. They have asked, ‘Is this “seller’s market” actually a bubble?’ 

What the leading indicators (as close to a crystal ball as we can get) foretell relative to the 2021 Florida real estate market is the exact opposite of a crash - which is also not hockey stick growth.

The current market conditions are not representative of any kind of a bubble. A housing bubble is a type of economic bubble that occurs periodically in local or global real estate markets, and typically follows a land boom. ‘A land boom is the rapid increase in the market price of real property such as housing until they reach unsustainable levels and then decline.’

Our last major bubble in South Florida was the result of many factors including what I call “artificial demand” which included many wealthy people from overseas buying new construction condos with the idea that they were a safe place to park money. In governments where 

the wealth of an individual may be confiscated or devalued at any moment, the idea of buying real estate in a stable economy was contagious. Pairing that with unpreceded inventory of new development units and lax lending climate and voila: unsustainable appreciation fueled by artificial demand. 

We aren’t seeing “artificial demand“ in our current real estate market. There are actual people moving to the area. At present, there are over 1000 people moving to Florida every single day. This is a material shift in the demand for property in our region.

Many of these newcomers are immigrating to Florida from very wealthy parts of the country including New York, New Jersey, Connecticut, Chicago, California, among others. Demographically speaking, these newcomers are frequently high net worth and ultra high net worth individuals. The reasons for their relocation to Florida are varied and tangential to this conversation.

The impact of this influx of homebuyers has been a significant price increase in the South Florida real estate market over the last year and a reduction in inventory resulting in an unprecedented seller’s market.

As is always the case, a seller’ market results in increased velocity and higher selling prices. Local buyer demand is centered on beautiful, move-in ready, and, in some cases, turn-key and furnished offerings in the luxury sector. In all sectors, there is unprecedented demand resulting in record-breaking prices. 

A few years ago, I sat on a panel discussion at The Residences Mandarin Oriental, Boca Raton where I was serving as Vice President of Sales. At that time, I claimed our new development options in Boca Raton as only slightly more than sufficient to meet the coming demand. At that time, we had not seen a new development project in Boca Raton since One Thousand Ocean launched in 2010.

Fast forward just 18 months and it seems that our inventory of new development offerings may be insufficient to meet the demand. Most of the buyers I have been working with are most concerned with finding luxurious accommodations catering to their elevated and full-service lifestyle preferences. Fortunately for them, we have a handful of exceptional new development options newly complete, nearly complete, and nearing completion.