Photo: Ramsay de Give for The Wall Street Journal
Penthouse at One57 in New York City was one of the three 2014 sales of $100 million or more.
I came across this article in Wall Street Journal, that reports number of $100 Million homes surges in U.S., and I found this news is unique to NYC and also other top cities in the country. I was familiar with the building called One57 in Manhattan, which is known as the one of the tallest (in 2014) residential buildings in Manhattan, which the penthouse tenant can enjoy a carpet view of the Central Park, and it’s per sq. price was one of the most expensive one in the city, as many other buildings in the same street, now it is called the billionaire’s row, and there are numbers new tallest residential developments coming up on this row.
The newspaper reports, as of March 31, 10 properties are listed in the U.S. at that price or higher—in diverse locales ranging from the Florida Keys to Dallas, according to a report released Thursday by Christie’s International Real Estate. If they all sell at or above the $100 million mark, it will more than triple the number of such sales in 2014, when three homes sold at above that price.
The tiny slice at the top of the market is driven by forces largely distinct from the larger housing market underneath it: the increasing concentration of global wealth; the desire for a safe place to put capital; and the notoriety and bragging rights that come with owning one of a handful of the most expensive properties in the world.
The three 2014 sales of $100 million or more capture the range of properties that make up the elite category: A duplex penthouse atop the new condo building One57 in New York City; a 11.2-acre vacation property in the Hamptons area of Long Island, N.Y.; and a 50-acre waterfront estate in Greenwich, Conn.
Economists said it is difficult to compare the performance of the ultraluxury market to housing overall because the former can swell markedly with just a few dramatic sales. World-wide, luxury home sales—as defined by those over the $1 million mark—jumped 16% in 2014 from the prior year, according to Christie’s.
Still in many cities, the pace at which the luxury market is growing slowed in 2014 from 2013. In San Francisco, which had a 62% increase in $1 million-plus sales in 2013, such sales grew 19% in 2014, according to Christie’s.
In Los Angeles, New York City and London, luxury sales growth slowed to near zero, which the report attributes to lack of inventory. In many places, the top end of the market is being driven by a few high-profile new condo buildings and can swing based on when those projects are finished and sales close.
In Miami, million-dollar-plus sales account for 6% of overall residential sales but 41% of the dollar volume. One could purchase 88 average homes for the top sale price of $28 million.
Source: Wall Street Journal.