While much of Florida’s condominium market is still grappling with the effects of new safety regulations, Palm Beach appears to be weathering the storm better than most areas. The state enacted stricter rules for residential buildings 30 years or older following the Champlain Towers collapse in Surfside, requiring milestone inspections and reserve studies. These measures have led to significant costs for building repairs and assessments across Florida.
In Palm Beach, however, brokers report that affluent condo owners are able to handle these expenses more easily than residents in other parts of South Florida. “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.”
Palm Beach has dozens of condominiums subject to the new laws. While there was some slowdown earlier in the year due to increased insurance rates and competition from new developments in West Palm Beach, agents say activity is picking up as winter approaches. The median sale price for condos on the island has risen to $2.7 million according to Redfin data, with 164 units currently listed between $315,000 and $17.9 million.
Costs for repairs and assessments average between $75 and $100 per square foot—amounting to $150,000 to $200,000 for a typical 2,000-square-foot unit—mostly covering concrete restoration work. Brokers noted that nearly all buildings have completed or are close to completing these required updates. “All these buildings have either completed [assessments and repairs] or have almost completed them,” said Dana Koch of Corcoran Group.
In contrast, similar assessments elsewhere can be financially devastating for owners without deep resources. For example, Howard Konetz at Aventura’s Mediterranean Village faces a $224,000 assessment fee on a fixed income.
Market insiders attribute Palm Beach’s resilience partly to its wealthy ownership base: if issues arose in their buildings, residents had funds available for immediate fixes. Many believe that improved physical conditions are now helping boost resale values as well. Chris Leavitt of Douglas Elliman said design updates are also aiding sales: “It really highlights the buildings that are in perfect condition.” He cited recent transactions at Biltmore at 150 Bradley Place following renovations.
Older condo properties on Palm Beach Island also offer buyers immediate availability compared with lengthy waits at new developments nearby. Agents say today’s buyers come prepared with questions about compliance: “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.
Sellers are increasingly realistic about pricing as well as special assessment obligations when closing deals. “Prices are coming down to reflect the reality of the market,” Gordon explained. “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.”
Some sellers pay substantial sums toward assessment fees at closing; Koch mentioned one seller who paid $62,000 toward such costs while moving a deal along. Several condo associations—including Cove at 2784 South Ocean Boulevard, Meridian at 3300 South Ocean Boulevard and Halcyon at 3440 South Ocean Boulevard—now require sellers pay off their share through ‘due on sale’ clauses before transferring ownership rights.
“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.”
