If the recent regulatory changes in Florida’s condominium market have created challenges across the state, Palm Beach appears to be weathering the storm more effectively than other areas. After the collapse of Champlain Towers in Surfside prompted new safety laws, including mandatory milestone inspections and reserve studies for buildings 30 years or older, many condo owners elsewhere have struggled with costly assessments and repairs.
In Palm Beach, however, brokers report that affluent residents are better able to absorb these costs. “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 is home to dozens of condominiums subject to the new regulations. The median sale price for condos on the island has risen to $2.7 million, according to Redfin data. There are currently 164 units listed for sale with prices ranging from $315,000 up to $17.9 million.
Assessment and repair costs average between $75 and $100 per square foot—meaning a 2,000-square-foot unit could require between $150,000 and $200,000 for necessary improvements. Most funds go toward concrete restoration work. Dana Koch of Corcoran Group noted that “all these buildings have either completed [assessments and repairs] or have almost completed them.”
In contrast, similar assessments elsewhere in South Florida can be financially devastating for owners without substantial resources.
Brokers say that as a result of these investments and regulatory compliance, many Palm Beach condo buildings are now in better physical condition and financial health than before. Design updates also play a role in attracting buyers; Chris Leavitt of Elliman credited recent renovations at Biltmore at 150 Bradley Place with helping close two sales over the summer.
Buyers today are more informed about building conditions and regulatory compliance requirements when considering purchases. Suzanne Frisbie of Corcoran commented: “Buyers have just gotten smart. They will ask, ‘Have you done your milestone inspection? Have you done this? Have you budgeted for it?’”
Pricing strategies are shifting as well; sellers are adjusting expectations set during the pandemic housing boom. Gordon explained: “Prices are coming down to reflect the reality of the market… 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 assessment fees upfront as part of negotiations—Koch cited one seller who paid $62,000—and several buildings now include ‘due on sale’ clauses requiring sellers to cover their share of assessments upon closing. These clauses have become common at properties such as Cove at 2784 South Ocean Boulevard, Meridian at 3300 South Ocean Boulevard (which took out a $10 million loan for repairs), and Halcyon at 3440 South Ocean Boulevard.
Gordon summarized current contract trends: “I think every contract that we’ve written lately has a ‘due on sale’ clause for the special assessment… The seller in almost every sale that we’ve done is responsible for the full payment of the assessments.”
