The impact of Florida’s new condo safety laws, enacted after the Champlain Towers collapse in Surfside, has varied across the state. In Palm Beach, real estate professionals report that the area’s affluent residents have been able to absorb the costs associated with required milestone inspections and reserve studies for residential buildings over 30 years old.
“Everybody’s reading the same doom and gloom about this market,” said Scott Gordon, a Douglas Elliman agent in Palm Beach. “For the luxury market, those buildings are in better shape than they’ve been in a decade.”
While Palm Beach is often associated with high-value estates and luxury homes, it also contains many older condominiums subject to these regulations. The first half of the year saw some challenges for condo sales due to rising insurance rates and competition from new developments in West Palm Beach. However, as winter approaches—a typically active season—brokers say there are signs of recovery.
The median sale price for condos in Palm Beach has increased to $2.7 million, according to Redfin data. There are currently 164 units listed for sale with prices ranging from $315,000 to $17.9 million on listing sites. Earlier this month, a buyer spent $9.4 million on a unit at Bellaria at 3000 South Ocean Boulevard after selling her previous home for $30 million.
Assessment and repair costs average between $75 and $100 per square foot, or about $150,000 to $200,000 for a typical 2,000-square-foot unit. These funds primarily cover concrete restoration projects.
“All these buildings have either completed [assessments and repairs] or have almost completed them,” said Dana Koch of Corcoran Group.
In other parts of South Florida such as Aventura’s Mediterranean Village, assessment fees can be financially burdensome for owners living on fixed incomes; one resident faces a fee of $224,000.
Market observers note that Palm Beach condo owners generally have more financial resources than elsewhere in Florida. This has allowed most buildings to address issues quickly—resulting in improved conditions that may benefit future resales. Chris Leavitt of Douglas Elliman highlighted recent updates at Biltmore at 150 Bradley Place as contributing factors to two successful summer sales there.
Older condos offer immediate availability compared to new developments still under construction nearby. Agents also say buyers are increasingly informed about regulatory requirements: “Buyers have just gotten smart. They will ask, ‘Have you done your milestone inspection? Have you done this? Have you budgeted for it?’” said Suzanne Frisbie of Corcoran Group.
Pricing adjustments are another factor influencing transactions as sellers adapt expectations post-pandemic: “Prices are coming down to reflect the reality of the market,” Gordon said. “In order to get a lot of these deals done, the sellers have been much more receptive to paying off special assessments just to move the deals forward.”
Koch described an instance where a seller paid $62,000 toward assessment fees as part of closing negotiations. Some condominium associations now require sellers pay outstanding assessments before completing sales—known as ‘due on sale’ clauses—which have become common practice at several properties including Cove at 2784 South Ocean Boulevard and Meridian at 3300 South Ocean Boulevard.
“I think every contract that we’ve written lately has a ‘due on sale’ clause for the special assessment,” Gordon added. “The seller in almost every sale that we’ve done is responsible for the full payment of the assessments.”
