Knight Frank’s latest data shows that sales of ultra-luxury homes are surging in certain US markets, bucking global trends.
The real estate consultant reported that New York City, Miami and Palm Beach saw an increase in sales of homes valued at $10 million or higher during the second quarter 2024. This was largely due to the strength of the financial markets.
New York led with 72 ultra-luxury houses sold, a 44% rise compared to 2023’s same quarter.
Miami was close behind with 55 homes, an increase of 16%. Palm Beach had a strong year, selling 36 homes above $10 million, a 27% increase from the previous year.
Not all cities in the US experienced the same growth, despite a robust housing market. Los Angeles sold 42 homes over $10 million. This was more than Palm Beach but it marked a steep decline of 29%.
Knight Frank’s report attributed the drop to the newly implemented mansion taxes in the city, which have cooled the demand at the top end of the market.
Palm Beach reported its biggest sales of the quarter
Michael Dorrel, an Australian investor in infrastructure, bought the only island of Palm Beach at $150 million back in May. This was the largest deal of the second half.
A 3.2-acre historic Palm Beach estate sold for $148 million during the quarter, while Manhattan came third with the $135 million sale in July of Aman New York’s penthouse.
Dubai, however, was able to beat New York, Miami, and Palm Beach in the sale of ultra-luxury properties. In Q2, the most populous of the seven emirates, Dubai, sold 85 houses worth $10 million or higher.
Dubai sold 436 ultra luxury homes in the last 12 months, compared to 23 only in 2019. Dubai’s tax-friendly regulations are what has attracted wealthy people from around the world in recent years.
Lower interest rates will boost sales of ultra-luxury homes
Knight Frank attributed part of the increase in sales in Miami, New York and Palm Beach, which defied the trend, to the strength of the financial markets.
Liam Bailey, the global head of research at the company:
The growth of the global super-prime market has been fueled by the creation of substantial wealth. The transformation of markets such as Dubai, Palm Beach and Miami has more or less offset the slowdown experienced by some mature markets.
Globally, sales of real estate worth $10 million or more in the 11 luxury markets tracked by the real estate consultancy have declined 4.0% year-over-year.
London saw the biggest decline in sales, with luxury home sales down 47% in second quarter. This was due to fears about higher taxes for the UK’s ultra rich.
The report concluded that the expected decline in interest rate will likely boost ultra-luxury homes sales in the second half of this year.
This post Ultra-luxury Home Sales Surge in New York, Miami and Palm Beach will be updated as new information becomes available
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