Connect with us

Hi, what are you looking for?

The American Genius Real EstateThe American Genius Real Estate

Real Estate Big Data

Sales of $100 million homes hit global record

Home sales are improving, but ultra-luxury properties are flying off of the shelves. But who’s ponying up? You might be surprised.

ultra luxury real estate

Ultra-luxury real estate sales are on the rise, not just at home, but abroad. The niche of homes for sale that cost over $100 million is on fire, and the market simply can’t keep up.

Sales of homes with a nine-figure value have hit a record high, not just because five (cough, cough) sold last year, but because there are many on the market being sold off-market to the hungry billionaires.

Bloomberg notes that the data comes from Christie’s International Real Estate, offering insight into the global trend (although it has been noted that the company may not be the most objective of observers).

The wealthy typically don’t even live in these homes

Wealthy investors see these mansions as investments. “It’s something they’ll hold onto for a lifetime,” the CEO of Christie’s Real Estate told Bloomberg News, “the same way they’ll hold onto a Picasso or a Warhol or any number of the great pieces of art we’ve sold over the years.”

Further, a purchase of this size does not mean it’s a homestead, rather as a means to park their cash. Most of the buyers of the $100M+ homes sold here have been to investors from China who have only been allowed to buy houses abroad for the last three years, leading to a surge in investing in American properties.

It’s also for bragging rights

“People want trophy homes,” Eyal Ofer, a Monaco-based shipping and real estate magnate, said in interview earlier this week at the Milken Institute Global Conference, according to Bloomberg. “They’re a scarce commodity. And they’re better than gold because you can boast about it.”

This makes high end luxury a growth market, and real estate professionals looking to cash in have a lot of competition. We’ll see if these high sales remain, regardless of economic constraints – money from China sure wants to land in America!

#100Mrealestate

The American Genius' real estate section is honest, up to the minute real estate industry news crafted for industry practitioners - we cut through the pay-to-play news fluff to bring you what's happening behind closed doors, what's meaningful to your practice, and what to expect in the future. Consider us your competitive advantage.

Advertisement

The Daily Intel
in your inbox

Subscribe and get news and EXCLUSIVE content to your email inbox.

Advertisement

KEEP READING!

Professionalism

Meeting weekly is rarely something a team looks forward to, but there are ways for brokers to improve attendance easily.

Op/Ed

Pre-MLS listings are used for a variety of reasons, but as they become more popular for their advantages, let us look at the disadvantages.

Op/Ed

When a doctor's hands get shaky, they can kill a patient. But when a Realtor's mind gets shaky, a client can lose thousands of...

Op/Ed

Code of Ethics violation reporting has long lacked transparency, so can this old theory mixed with some new theories improve public perception of Realtors?

The American Genius' real estate section is honest, up to the minute real estate industry news crafted for industry practitioners - we cut through the pay-to-play news fluff to bring you what's happening behind closed doors, what's meaningful to your practice, and what to expect in the future. We're your competitive advantage. The American Genius, LLC Copyright © 2005-2022