Sales of ultra-luxury homes soared in New York, Miami, and Palm Beach, Florida, in the second quarter, with a 44% increase in Palm Beach, 27% in Miami, and 16% in New York. New York led the US in $10 million-plus sales with 72, while Miami sold 55, Los Angeles 42, and Palm Beach 36. Los Angeles saw a decline due to a new mansion tax. The biggest sale was a $150 million private island in Palm Beach in May.
Global super-prime sales fell 4% in the 11 luxury markets tracked by Knight Frank, totaling $8.5 billion. Dubai had the most ultra-luxury sales with 85, a significant increase from 23 in 2019. However, London experienced a 47% decline in $10 million-plus home sales due to fears of higher taxes on the wealthy in the UK.
Ultra-wealthy buyers are still willing to pay record prices for rare trophy properties, driven by rising financial markets. Knight Frank expects falling interest rates worldwide to support sales in the ultra-luxury market in the second half of the year. In Manhattan, 29 contracts were signed for properties over $4 million, the strongest post-Labor Day week since 2006.
Overall, the global super-prime market has been buoyed by substantial wealth creation, with markets like Dubai, Palm Beach, and Miami thriving, offsetting slowing in more mature luxury markets. Despite challenges in some areas, luxury real estate sales continue to be robust, attracting wealthy buyers looking for unique and high-end properties around the world.
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