Surge in Ultra-Luxury Home Sales in U.S. Hotspots Defies Global Trends
While much of the world saw a dip in ultra-luxury home sales, markets in New York, Miami, and Palm Beach experienced significant growth in the second quarter of the year. According to a report by Knight Frank, sales of homes priced at $10 million or more increased by 44% in Palm Beach, 27% in Miami, and 16% in New York.
New York Leads in U.S. Ultra-Luxury Sales
New York claimed the top spot for $10 million-plus property sales in the U.S., recording 72 transactions—the highest in two years. Miami followed with 55 sales, while Palm Beach and Los Angeles saw 36 and 42 sales, respectively. Los Angeles, however, reported a 29% decline, largely attributed to the city’s new “mansion tax” that levies a 5.5% charge on homes sold above $10 million.
Record-Breaking Sales Highlight Q2 Growth
Several high-profile sales were recorded in Q2, including a $150 million private island in Palm Beach, a $148 million historic estate, and a $135 million penthouse at Aman New York. Despite the softening of some luxury markets, demand for ultra-rare, trophy properties remains robust, driven by wealth generated from financial markets.
Global Perspective: Dubai Emerges as Ultra-Luxury Hub
Globally, sales of $10 million-plus properties in major luxury markets dropped by 4%. Dubai, however, experienced a surge in high-value transactions, with 85 sales in Q2, fueled by its favorable tax environment. Meanwhile, London’s ultra-luxury market saw a sharp 47% decline, a result of increased tax concerns.
Outlook for Ultra-Luxury Real Estate
As interest rates continue to stabilize, the second half of 2024 may see renewed momentum in ultra-luxury home sales. Emerging markets like Dubai and established ones such as New York and Miami are poised to lead the way, despite challenges in some regions.