While much of Florida’s condominium market has faced challenges due to new safety regulations, Palm Beach appears to be less affected compared to other regions. After the Champlain Towers collapse in Surfside, lawmakers introduced new rules requiring milestone inspections and reserve studies for residential buildings 30 years or older. These measures have led to significant costs for many condo owners across the state.
In Palm Beach, however, the impact is different. Local real estate agents say that wealthier communities like Palm Beach are better equipped to handle these financial requirements. “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.”
The majority of condos on the island are more than 30 years old and subject to these laws. Rising insurance rates and competition from new developments in West Palm Beach contributed to a slowdown earlier this year. However, activity has increased as winter approaches. The median sale price for condos in Palm Beach is now $2.7 million according to Redfin data, with listings ranging from $315,000 up to $17.9 million.
Assessment and repair costs average between $75 and $100 per square foot, amounting to about $150,000 to $200,000 for a typical 2,000-square-foot unit. Most funds are directed toward concrete restoration projects. Brokers noted that most buildings have completed or nearly finished these improvements.
“All these buildings have either completed [assessments and repairs] or have almost completed them,” said Corcoran Group’s Dana Koch.
Elsewhere in South Florida, similar assessments pose serious financial burdens for owners without substantial resources; some face assessment fees exceeding $200,000 on fixed incomes.
Palm Beach’s condo owners generally have greater financial flexibility. Many brokers report that recent upgrades—both structural and cosmetic—have improved resale values and helped close deals more quickly. Chris Leavitt of Douglas Elliman pointed out how renovations at Biltmore at 150 Bradley Place contributed to two recent sales there: “It really highlights the buildings that are in perfect condition.”
Older condo buildings on the island also appeal because they are ready for immediate use while buyers may wait years for completion of new developments elsewhere. Agents note that buyers now ask more detailed questions about building compliance with safety regulations.
“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.
Sellers are also adjusting their expectations by accepting lower prices than during the pandemic boom period. “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 one instance where his client paid $62,000 toward assessment fees as part of a sale agreement—a practice becoming common through ‘due on sale’ clauses now adopted by several local condo associations such as 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 said.“The seller in almost every sale that we’ve done is responsible for the full payment of the assessments.”
