The Market Bubble of the $100 Million Homes
By: Claudia Repsold
How much is too much for a house? For most of mortals, seven-figure would be a bold number, however the hyperprice homes are listed for $100 million or more. No doubt, it is a niche market where only 1,800 billionaires in the world can afford an invitation for an open house.
The rise in nine-figure real estate listings comes just as sales of luxury real estate have cooled. The market for mega-mansions and penthouses has cooled significantly in the last year. According to Redfin, prices for homes in the top 5 percent of the real estate market fell 1.1 percent in the first quarter of 2016. Prices for the rest of the housing market increased 4.7 percent.
Pileup of $100 Million Homes
Yet, a record 27 properties with nine-figure prices are officially for sale, last year was 19 homes. It is estimates that of those listings, a third will sell for under $100 million, a third will sell for around $100 million and a third for far more. Many say the sudden surge in mega-priced homes — often built and sold by speculative investors — is the ultimate bubble signal. A champagne bubble, you may conclude.
Of course, anyone can slap a $100 million price tag on a property to get attention, but the actual sales are rare even in good times. According to Christie’s International Real Estate, between 2011 and 2016, only 15 homes in the world have sold for $100 million or more and five of those were in 2014.
Last year, only two properties in the world sold for over $100 million. One was in Hong Kong purchased for $193 million by Jack Ma, the CEO of Alibaba. The other was a townhouse in London that sold for $132 million. This year, a ranch in Texas went on the market for $700 million and a home in Dallas listed for $100 million. Both sold, but the actual sale prices have not been disclosed.
Of the 10 most expensive listings in the world, seven are in the United States and four of these are in Los Angeles.
Check it out the 10 most expensive listings in U.S.
1- List Price : US$ 500 Million
The compound is being built in the Bel Air neighborhood of Los Angeles – CA
Owner: Nile Niami.
2- List Price: US$ 200 Million
Playboy Mansion, Los Angeles – CA
Owner: Hugh Hefner
3- List Price: $ 146 Million
Palazzo di Amore – Beverly Hills -CA
Owner: Jeff Greene.
4- List Price: US$ 150 Million
Holmby Hills – Beverly Hills -CA
Owner: Gala Asher. The property was once owned by Barbra Streisand
5- List Price: US$ 135 Million
Hillcrest Road – Beverly Hills -CA
Owner: The current owner is a mystery. The property was once owned by Barbra Streisand
6- List Price: $125 Million
Fleur de Lys Mansion – Los Angeles – CA
Owner: Suzanne Saperstein
7- List Price: $118.5 Million
Ritz-Carlton Penthouse , New York – NY
Owners: Gary Segal and Randall Yanker
8- List Price: $100 Million
Casa Casuarina, formerly known as the Versace Mansion, Miami – FL
Owner: Nakash Family
9- List Price: $100 Million
Sycamore Valley Ranch, once Michael Jackson’s Neverland Ranch,
Santa Barbara, CA
Owners: Estate of Michael Jackson with Colony Capital LLC
10- List Price: $100 Million
City Spire Penthouse , New York –NY
Owner: Steven Klar
Claudia Repsold is the Editor-in-Chief of Brazil & USA Biz. She is a Brazilian international award- winning journalist with twenty years of experience in editing, research, coordination, production and reporting news on Brazil and U.S.