BEVERLY HILLS BECKONS – Beverly Hills super agent, Greg Moesser of Sotheby’s International Realty, describes the Beverly Hills & Los Angeles real estate markets as a global opportunity “Up & Coming Luxury Market”. People are often surprised when I say our market is “Up & Coming”, a term usually reserved for areas that are in the process of serious improvements and gentrification. Beverly Hills is about as established and gentrified as you can get when describing luxury real estate, but on a global scale, property values for the last 2 decades have been anywhere from 30% to 50% less than other major metropolitan cities, such as London, Moscow, Paris and Hong Kong. That is until this year, where local luxury real estate sales are breaking records. While we are still comparatively lower priced than other international markets, our real estate values have been on the rise, resulting in what I would consider to be, in my opinion, an “Up & Coming” luxury market.
LA’s priciest digs are now peaking at around $150 million, which is a considerable increase to our long held cap of under $100 million. Several mega mansions are now also under construction (in the realm of 60,000-70,000 square feet) that will most likely even exceed that number, should they come on the market. Another important note is the fact that this year alone, the number of properties that sold at over $20 Million has more than doubled compared to last year. While maybe not as dramatic, similar records have also been seen in our lower price ranges, including the price categories from $1M to $5M and $10 Million. Some recent notable sales is the “Fleur de Lys” mansion that sold for $88 Million after being on the market for over 5 years, and the sale of “Carolwood”, Walt Disney’s former estate, which sold for $74 Million.
While other world-class cities have prices well over $7000 per square foot, the most desirable properties in Los Angeles and Beverly Hills are barely pushing the range of $2000 to $3000 per square foot. When you factor price along with our current high demand and low inventory, this is usually a formula that forecasts a rising market. These properties would include the “best of the best” of Southern California homes, which includes; brand new cutting edge homes by award winning architects, luxury condominiums & penthouses, large plots of land with lawns and pools, many gated for privacy and offering jetliner views, and also located in the very best parts of town, such as Beverly Hills, Bel Air, Holmby Hills, Hollywood Hills and Malibu.
In my opinion, the Los Angeles luxury real estate market currently shows tremendous opportunity for Buyers in ALL price ranges, from the entry level $1M to $5M markets and all the way up to properties valued at over $100 Million. In addition to the “value” when compared to other international cities, the California real estate market is currently stable and the state has strong economic growth. Another factor is the volatile world situation in Eastern Europe and the Middle East and the ability of foreign Buyers to purchase property, with basically the same ownership rights as a USA citizen. Of course, the Southern California lifestyle is often the most important reason for many of my clients to purchase and invest in a property. We offer year round mild weather, excellent schools, beautiful beaches, world class museums & entertainment, luxury shopping and fabulous restaurants. See complete article at http://www.abode2.com/beverly-hills-beckons/