Palm & Hibiscus Islands

Palm Island and Hibiscus Island are two exclusive guard-gated residential islands located off the MacArthur Causeway between Miami and Miami Beach. These islands feature grand waterfront estates with open bay views, private docks, and lush tropical landscaping. The islands offer a perfect blend of privacy and convenience with quick access to both South Beach and downtown Miami.

Two Private Islands Between Miami and the Beach

Palm Island and Hibiscus Island are a pair of guard-gated residential islands connected to the MacArthur Causeway, the main artery linking downtown Miami to South Beach. Both islands were dredged from Biscayne Bay in the 1920s during Miami's legendary land boom — the same era that produced Star Island, their immediate neighbor to the east. Army Corps of Engineers fill material created what would become some of the most coveted residential land in South Florida.

Today, Palm Island sits to the south and Hibiscus Island to the north, each accessible through its own staffed guardhouse directly off the causeway. The islands share a zip code with Miami Beach but feel like a world apart — no commercial traffic, no through streets, and no public access. You pass Star Island's gatehouse on the way in, and Fisher Island sits just across the channel to the south. There is no better address for buyers who want island privacy without sacrificing a ten-minute drive to Brickell or a five-minute ride to South Beach.

Palm Island vs. Hibiscus Island

Though often mentioned together, the two islands have distinct personalities. Palm Island is the larger of the two, with approximately 110 single-family lots. Properties here sit on deeper lots — many exceeding 15,000 square feet — with generous waterfront frontage on Biscayne Bay and the interior lagoon. Palm Island attracts buyers looking for trophy estates, and the island has historically commanded higher price points, with waterfront homes regularly trading between $15 million and $50 million. Al Capone lived at 93 Palm Avenue from 1928 until his death — the original structure was demolished in 2023, though the lot remains part of Palm Island's storied history.

Hibiscus Island is more intimate, with roughly 90 homes on slightly smaller lots. The feel is quieter and more neighborhood-oriented, with mature tree canopy and a mix of original mid-century homes alongside contemporary new construction. Entry-level pricing on Hibiscus tends to start in the $5 million to $8 million range for non-waterfront properties, making it an attractive option for buyers who want guard-gated island living without the premium of Palm Island or Star Island. Waterfront estates on Hibiscus typically trade from $10 million to $30 million depending on lot size, frontage, and condition.

The Lifestyle: Bay Views, Private Docks, and Unmatched Access

Living on Palm or Hibiscus Island means waking up to open Biscayne Bay views, with the downtown Miami skyline to the west and the Atlantic beyond the Beach to the east. Most waterfront properties include private docks capable of accommodating vessels up to 60 feet or more, with direct ocean access through Government Cut — the same deep-water channel used by cruise ships and superyachts leaving PortMiami.

The location is the real differentiator. MacArthur Causeway puts you on South Beach in under five minutes and in the heart of Brickell or downtown Miami in ten. Miami Beach's best restaurants — from Joe's Stone Crab to Carbone — are a short drive south. The Perez Art Museum, Frost Science Museum, and Kaseya Center sit directly off the causeway on the mainland side. For families, both public and private school options in Miami Beach and Miami proper are within easy reach.

Day to day, the islands are remarkably quiet. There is no commercial zoning, no hotel traffic, and no tourist foot traffic. Residents jog and walk dogs on the perimeter road with nothing but bay water and skyline views for company. It is the rare combination of total seclusion and total connectivity that makes these islands so difficult to leave once you arrive.

Real Estate Market and Pricing Trends

The Palm and Hibiscus Islands market has seen significant appreciation since 2020, driven by the same migration wave that reshaped all of Miami's luxury waterfront. Waterfront teardown lots that traded for $4 million to $6 million pre-pandemic now command $8 million to $12 million. Finished waterfront estates on Palm Island have broken $40 million, and new construction spec homes with modern design, rooftop terraces, and resort-style pools are pushing past $50 million.

New construction activity has intensified, particularly on Palm Island. Developers and end-users are acquiring older homes from the 1930s through 1960s, demolishing them, and building 8,000- to 15,000-square-foot contemporary estates with infinity pools, summer kitchens, and multi-slip docks. The new builds command a premium, but renovated and well-maintained original homes still trade actively in the $12 million to $25 million range.

Inventory remains tight. In any given quarter, you will find only five to ten homes listed across both islands, and many of the best properties trade off-market. As someone who has walked every street and knows most of the owners personally through my Star Island network, I regularly connect buyers with properties that never hit the MLS.

Why Palm and Hibiscus Over Star Island

Star Island is the crown jewel — I brokered the $49.5 million sale at 22 Star Island (the highest single-family sale on Star Island at the time it closed), so I know the market as well as anyone. But Star Island's 34 lots and ultra-limited inventory mean that entry starts north of $30 million and there may not be a single property available when you are ready to buy.

Palm and Hibiscus Islands offer the same MacArthur Causeway location, the same guard-gated security, and many of the same open bay views — at a fraction of the entry point. A waterfront home on Hibiscus Island can be had for $10 million to $15 million. On Palm Island, $15 million to $25 million buys a serious estate with deep water and wide frontage. For buyers who want the island lifestyle, the private docks, and the causeway convenience without a $40 million minimum, Palm and Hibiscus represent the best value on the MacArthur Causeway corridor.

And because I work both sides of the causeway — Star Island, Palm, Hibiscus, and Fisher Island — I can show you every option and help you find exactly the right fit for your family, your boat, and your budget.

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David Hunt Solomon has 20 years of expertise in Miami Beach luxury real estate and has closed more than $500 million in career sales.