Surge in $10 Million-Plus Home Sales in Palm Beach and New York

Palm Beach’s Only Private Island, Tarpon Island.Photo by(Fernando Lima/Visualize USA)

Sales of ultra-luxury homes priced at $10 million or more spiked in Palm Beach, Miami, and New York during the second quarter of this year, defying a broader global slowdown in high-end real estate transactions, according to a new report from Knight Frank.

Palm Beach experienced the largest growth, with sales jumping 44%, followed by a 27% increase in Miami and a 16% rise in New York. New York led the U.S. in sales of homes exceeding $10 million, recording 72 transactions, the highest in two years. Miami followed with 55, while Palm Beach recorded 36 sales. Los Angeles, which once led the luxury market, saw a 29% decline, likely influenced by a new 5.5% "mansion tax" on properties sold for over $10 million, the report said.

Notable transactions during the quarter included the sale of Palm Beach’s only private island for $150 million in May, reportedly purchased by Australian investor Michael Dorrell. Another significant deal in Palm Beach was the sale of a historic 3.2-acre estate for $148 million in June, while in Manhattan, the Aman New York penthouse fetched $135 million in July.

Knight Frank's report suggests that despite cooling demand in other luxury markets, ultra-wealthy buyers are still willing to pay record prices for rare trophy properties, buoyed by strong financial markets. “Substantial wealth creation has supported the growth in the global super-prime sales market,” said Liam Bailey, global head of research at Knight Frank. He highlighted the transformation of markets like Dubai, Palm Beach, and Miami as key drivers offsetting declines in more established markets.

Globally, sales of homes priced over $10 million fell by 4% to $8.5 billion, with Dubai leading the ultra-luxury market. London, however, saw a sharp 47% decline amid concerns over potential tax increases on high-end properties.

Attributions
CNBC