Super rich super properties
From time to time, I like to write about the over $1 million dollar properties that are becoming, if not the norm on Anna Maria, then certainly increasing at a rapid pace. But what is equally shocking is the number of incredibly pricey, luxury properties around the country with price tags never before seen.
According to Trulia, over the past year, there were more than 300 homes for sale across the country priced from $35 million to $49 million. This is an increase of 24 percent from the previous year, and these numbers are becoming more of a trend than an outlier.
In the past five quarters, at least 37 homes have sold between $30 million and $49.9 million in New York, Miami and Los Angeles. This is up 16 percent from the comparable time frame during the crazy 2007 and 2008 real estate market.
Even properties priced above $100 million are not that unusual. I read about one last month on New York’s Long Island listed for $100 million. The traditional European style 1928 waterfront estate is on 8 acres with 60,000 square feet, a dock that can accommodate a 200 foot yacht, indoor pools and a lazy river. Currently the house is the most expensive on the market on the tony North Shore of Long Island.
There apparently are a lot more buyers willing and, more importantly, able to purchase homes over $40 million than there were not too many years ago. The super luxury home market is being stimulated by global wealth coming from out of the country as well as domestic. The United States, in spite of our own financial downturn, is still considered a safe place to park money, and the well to do are always comfortable with investing in real property.
However, the super rich who make up 1 percent of the world’s wealth aren’t pushovers and can be pretty particular about what they want in a home. At the top of their list is purchasing a property that is fully furnished in a style they want. Buyers at this level usually have other homes and don’t want to spend time picking out furniture, a concept that Florida condo buyers are very familiar with.
Closer to home, Naples and Sarasota are also starting to feel the effects of the super wealthy phenomena, and why not after last winter? Of course wealthy Florida buyers are looking for different amenities than big city ones. Naturally, they want waterfront direct, Gulf or bay, depending upon their boating interests. They also want new, new, new for the same reason they want furnished. They don’t have the time to renovate and have zero interest in adapting to the previous owner’s decorating style.
Everyone also wants the outdoor lifestyle with pools, outdoor kitchens and sports facilities like tennis courts. Separate guest quarters and lots of parking are crucial, but indoor kitchens not so important, at least not in size, since catering and restaurants play a larger role.
Getting the super rich to our area at the moment could be a challenge since the number of homes that appeal to this level buyer just isn’t available. In the spring, Naples had 26 homes listed at $10 million or more and Sarasota only 7. However, there was a property at the north end of Longboat Key listed at $22 million and Anna Maria Island does have a property listed over $6 million, so we’re getting there.
Stay tuned for the next installment of my over $1 million island properties. We may be a long way from competing with Los Angeles and New York, but we’re starting to gain on Naples and Sarasota, and we do have endless charm.