$10M Luxe Homes Thrive in US Real Estate Market

Despite a global downturn, luxury homes in Palm Beach, Miami, and New York see remarkable growth in the US real estate market. Discover why.

While the global ultra-luxury home market may be experiencing a downturn, the affluent enclaves of New York, Miami, and Palm Beach are reveling in an unprecedented surge. A recent report from the esteemed real estate firm Knight Frank reveals that sales of homes priced at $10 million or more skyrocketed in the second quarter, with Palm Beach leading the charge with an astonishing 44% increase. Miami followed closely with a 27% uptick, while New York's most opulent addresses enjoyed a respectable 16% rise.

New York retains its title as the reigning champion of high-end real estate, recording 72 sales exceeding $10 million—its highest total in two years. Miami, not to be outdone, reported 55 significant transactions, while Palm Beach secured 36. Los Angeles, despite facing a 29% decline—likely attributed to the newly implemented “mansion tax” of 5.5% on properties selling for over $10 million—still managed to make the list with 42 sales.

Among the most jaw-dropping transactions of the quarter was the sale of Palm Beach’s sole private island for a staggering $150 million, purchased by Australian infrastructure magnate Michael Dorrell. Palm Beach continued to impress with a historic 3.2-acre estate fetching a cool $148 million in June. Not to be outshone, Manhattan entered the mega-sale arena in July, with a penthouse at the Aman New York changing hands for an eye-watering $135 million.

Despite a cooling demand in other high-end markets, ultra-wealthy buyers remain undeterred, willing to part with record sums for these rare properties. The reason? “Substantial wealth creation has bolstered the growth in the global super-prime sales market,” as noted in the report. The transformation of hotspots like Dubai, Palm Beach, and Miami has more than compensated for the slowdown experienced in more mature markets.

However, the global picture is not entirely rosy. Knight Frank’s report indicates that sales of homes priced at $10 million and above in the top 11 luxury markets have dipped by 4% over the past year, totaling $8.5 billion. Dubai has emerged as the new darling of high-priced real estate, boasting an impressive 85 sales in the second quarter alone. The city’s favorable tax and regulatory environment has attracted the ultra-wealthy from across the globe, skyrocketing from a mere 23 sales in 2019 to 436 over the past year.

Conversely, London is facing a significant downturn, with sales of $10 million-plus homes plummeting by a staggering 47%, as the looming threat of higher taxes prompts the wealthy to reconsider their investments.