Panama City Beach’s beachfront skyline includes many longstanding condominiums, but one of the oldest has recently faced a serious setback. The Dunes of Panama Building A (built in 1974) has been ordered into a mandatory full shutdown due to structural safety concerns.
Read more: Structural Concerns Force Closure of Dunes of Panama Building-A in Panama City BeachIn November 2025, the A-building owners’ association distributed letters to all owners and residents announcing that the entire building must be vacated and remain unoccupied until repairs are completed. The directive cited a “serious life safety risk” stemming from structural deficiencies, requiring a complete restriction of use.
The problems came to light on October 1, 2025, when structural engineers, while conducting Milestone repairs, identified significant safety concerns. A follow-up engineering evaluation revealed visible stress cracks on the exterior walkways of the sixth and seventh floors. Initially, the association restricted access to just those two floors and started targeted repairs. Further evaluation deemed the entire building was unfit for occupancy because of the walkways.
This development aligns with Florida’s strengthened post-Surfside building safety regulations, including mandatory Milestone Inspections for older structures. These tougher requirements have prompted many aging coastal condos to undergo rigorous evaluations and necessary reinforcements.
To address the original Milestone identified deficiencies, the association took proactive steps earlier in the year. In March 2025, Building A entered into repair contracts totaling approximately $2.974 million to complete the work flagged by the Milestone Inspection. Funding included $1.493 million from remaining Hurricane Michael insurance proceeds, supplemented by other sources. That same month, owners approved a $1.6 million special assessment to help cover the project’s costs.
Repairs are now underway, with expectations that the work will continue through mid-2026. Officials estimate residents and owners may be able to return sometime in the summer of 2026, depending on the pace of remediation and final inspections.
It’s fascinating to observe the impact of the ongoing maintenance on current Dunes of Panama condos for sale. A two-bedroom unit in the A-building is presently under contract, listed at $399,000. During Q4 2025, two more two-bedroom units plus one three-bedroom were taken off the market. One quarter earlier a two-bedroom in the D-building closed at $433,000. It’s worth noting that the two-bedroom layouts in the A-building vary considerably from those in the B, C, and D buildings.
This condo repair initiative reflects a broader trend along Florida’s coast. Older buildings are being retrofitted to meet modern safety standards, ensuring long-term protection for residents and visitors. The Dunes of Panama remains a distinctive group of condominium buildings situated on one of the largest gulf-front land parcels in Panama City Beach. Successfully completing the required Milestone repairs on Building A will ultimately bolster the association’s stability.
The overall market for Panama City Beach condos for sale showed sales prices down 7.4% in 2025. Unlike southern Florida where numerous older buildings have encountered major milestone inspection challenges; Panama City Beach has seen far fewer comparable situations. However, a select number of buildings have faced significant special assessments to fund the necessary milestone inspection repairs.