One of the real estate related questions that I get asked a lot is about land values in Coconut Grove. It’s not surprising as buildable land has been one of the hottest segments in our market over the past few years. In fact, many sales occur before they even hit the MLS. So far in 2016 there have been approximately 21 properties that sold for land value. These sales have closed for an average “sale price/square foot” of $85.00. Keep in mind that you have to be cautious with this figure because as you can see from the chart, there are a wide range of values. Some of the factors that come into consideration when valuing a piece of land including location (gated, non-gated, waterfront, non-waterfront), what size of house can you build on the lot which can be affected by its shape, how many trees are on the site and where are they located, does a new water line have to be installed on the street prior to building (which has to be paid by the developer), is the lot dividable (a point of contention among residents in the Grove) plus much more.
Although prices are strong, we have seen the number of land sales slow down over the past 6 months. This trend is in line with the rest of the Grove which has experienced a drastic reduction in the number of properties sold. If you are considering buying or selling a piece of land in Coconut Grove, it is essential that you work with an experienced agent who can help you determine its true value.
*The properties above are made up of sales that were classified as land on the MLS, as well as those that sold for land value but were labeled as single family homes.