Sales of ultra-luxury homes, priced at $10 million or more, have experienced a significant surge in Palm Beach, Miami, and New York during the second quarter, contrasting with a global decline in similar transactions, according to a recent report by real estate firm Knight Frank.
In Palm Beach, sales of $10 million-plus properties soared by 44%, while Miami saw a 27% increase and New York experienced a 16% rise. New York led the U.S. market with 72 such sales, marking its highest total in two years. Miami followed with 55 sales, Los Angeles with 42, and Palm Beach with 36. Notably, Los Angeles reported a 29% decline in $10 million-plus sales, attributed in part to a new “mansion tax,” which imposes a 5.5% surcharge on homes sold for over $10 million.
Among the notable transactions, Palm Beach’s private island sold for $150 million in May, reportedly acquired by Australian investor Michael Dorrell. Additionally, a historic 3.2-acre estate in Palm Beach was sold for $148 million in June. In Manhattan, the penthouse of Aman New York changed hands for $135 million in July.
Despite a slowdown in demand in many luxury markets compared to the 2021 peak, the ultra-wealthy continue to pursue record prices for rare properties, driven largely by rising financial markets. Liam Bailey, Global Head of Research at Knight Frank, noted that substantial wealth creation has bolstered the global super-prime sales market. The rapid growth in markets like Dubai, Palm Beach, and Miami has offset declines in more mature markets.
Globally, sales of $10 million-plus homes fell by 4% year-over-year to $8.5 billion across 11 top luxury markets tracked by Knight Frank. Dubai emerged as a leading market for ultra-luxury real estate with 85 sales in the second quarter, reflecting a dramatic rise from previous years. Conversely, London saw a substantial 47% decline in sales, influenced by concerns over increased taxation on the wealthy.
With global interest rates falling, the report anticipates that sales volumes for ultra-luxury properties may increase into 2025. The strong post-Labor Day activity in Manhattan, including 29 contracts signed for properties over $4 million, supports this optimistic outlook.
