Sunny Isles Beach, located mere minutes from Bal Harbour, is providing buyers with more than 100 new condominiums. The first months of 2010 saw the average price of condos drop 12 percent, sending buyers into a frenzy to snap up the luxury market homes on the beautiful island in South Florida, heavy with investors including Donald Trump.

The discounting helped the booming resort town outsell their counterparts with an average price of $508 per square foot in comparison to $1,350 in South Beach. By contrast, greater downtown Miami condos sold at an average price of $326 per square foot.

"The buying pool for new South Florida condos is proving to be extremely deep despite the fact that financing is difficult to obtain," said Peter Zalewski, a principal with a Bal Harbour based real estate consultancy. "The trend continues to be strong sales at projects where the developers have discounted their prices deep enough to grab the attention of all-cash buyers."

"The unwillingness of developers of South Beach developers to cut their prices on new units has worked to drive buyers to other areas such as Greater Downtown Miami and Sunny Isles beach."