A new report shows that in the second quarter of this year, despite a decrease in sales of ultra-luxury homes in most parts of the world, sales in New York, Miami, and Palm Beach, Florida, in the United States have surged.
According to data released last week by Knight Frank, a global real estate consultancy based in London, the number of homes sold for $10 million or more in Palm Beach, Florida, increased by 44% in the three months ending in June 2024, Miami increased by 27%, and New York increased by 16%.
These significant increases contrast with global data. Knight Frank’s data shows that sales of homes valued at $10 million or more in 11 major real estate markets worldwide totaled 463 units. This number is slightly lower than the 476 units recorded in the previous quarter. Nevertheless, sales in the high-end residential market are still nearly two-thirds higher than pre-pandemic levels.
Knight Frank’s report states that New York leads the country in sales, marking the best quarter performance since at least the spring of 2023 by selling 72 luxury homes, surpassing the 58 units sold in the previous quarter and the 67 units sold during the same period last year. Miami follows with 55 units, followed by Los Angeles with 42 units and Palm Beach with 36 units.
Unlike the other three cities mentioned above, Los Angeles saw a 29% decrease in sales of homes priced over $10 million, primarily due to the city’s new “luxury home tax” policy, which imposes a 5.5% fee on homes valued at over $10 million.
Meanwhile, the total sales value of ultra-luxury homes worldwide has decreased by one-third from its peak post-pandemic. In the 12 months ending in June, the total sales value amounted to $33.4 billion, staying level with the annual sales value of $33.8 billion in the previous two years but falling short of the peak of $44.5 billion in 2021.
In the 11 top luxury housing markets tracked by Knight Frank, sales of homes priced at $10 million or more decreased by 4% compared to the same period last year, totaling $8.5 billion.
Over the past five years, with a 19% increase in high net worth individuals, global sales of ultra-luxury homes have surged, led by Dubai in the UAE, Miami, and Palm Beach in the United States.
Knight Frank’s latest data shows that Dubai leads the world in the ultra-luxury real estate sector, having sold 85 units in the second quarter.
Liam Bailey, Global Head of Research at Knight Frank, stated, “The creation of substantial wealth has underpinned the growth of the global super-luxury home sales market. The transformation of markets such as Dubai, Palm Beach, and Miami has offset some slowdown in more mature markets. With interest rates declining, total transaction volumes could rise in 2025.”