The Los Angeles real estate market is setting records
Los Angeles remains one of the most popular and widely renowned destinations in the world, so unsurprisingly the real estate market is performing strongly, with house prices increasing by 9 percent in 2015. Sales are particularly buoyant in the highly sought-after Platinum Triangle (Beverly Hills, Bel Air and Holmby Hills), where the highest sale in 2015 exceeded $60 million, and luxury real estate specialist Hilton & Hyland, an affiliate of Christie’s International Real Estate, represented the buyer.
Buyers in the Platinum Triangle purchasing homes at the $10-million-plus level hail primarily from within the United States and operate in the corporate and tech industries. Following success in the San Francisco Bay Area, where Silicon Valley is a world-renowned tech hub, wealth has flowed down to Los Angeles and created the emergence of Silicon Beach, which tends to have a younger demographic.
Billionaire and Minecraft creator Markus Persson, for example, purchased a $70-million, 23,000-square-foot home in 2014 on tony Hillcrest Drive in Beverly Hills.
Luxury buyers choose Los Angeles for its incomparable lifestyle of glamour, global industry leadership, exceptional climate and 75 miles of stunning golden coastline. This premier destination for luxury also offers the ultimate in high-end shopping on Rodeo Drive and a selection of the world’s best restaurants, including CUT and Spago.
This global city generates keen interest from around the world, due in large part to the strong US economy, the country’s stable political system and the fact that wealth prefers to relocate to areas in which wealth already resides.
There are other draws, as well. Chinese buyers, for example, are attracted to the wide array of distinguished schools and universities. Middle Eastern buyers are attracted to the city’s vast and opulent manors. As the world’s entertainment nexus by consensus, the city is re-inventing itself as an international tech hub, as mentioned earlier, attracting a new population of wealth not only from Silicon Valley but around the world.
Premier listings are plentiful for those looking to acquire a trophy home. The Playboy Mansion, co-listed by Hilton & Hyland and The Agency, was recently introduced to the market for $200 million. The crown jewel of the Platinum Triangle, the 20,000-square-foot main residence offers the ultimate in privacy and large-scale entertaining. Hilton & Hyland also presents good value with large estates on offer, such as an eight-bedroom, 16,152-square-foot residence located near Sunset Boulevard, on the market for $19,500,000.
Compared to what is available in other global hubs, such as London and New York City where the price per square foot is exceptionally higher, Los Angeles presents a prime global value proposition. One example is a modern masterpiece at 864 Stradella, which is perched above the city on one of the Platinum Triangle’s most coveted streets, boasting the best views in Bel Air. Showcasing a highly contemporary style, this home was designed by renowned architect Paul McClean and completed in August 2014. The sleek design seamlessly integrates the interior and exterior spaces of this seven-bedroom property, which also boasts an array of five-star amenities, including a wine cellar, gym, home theatre, infinity pool and finished auto gallery to impressively display the owner’s vehicles. This property is on the market with Christie’s International Real Estate for $49,995,000.
Meanwhile, set in a private enclave at 2227 Stratford Circle is a gated property comprising six bedrooms and seven bathrooms. The top floor master suite exudes luxury, complete with his and hers bathrooms, walk-in wardrobes, and a private balcony with breath-taking ocean views. The home also boasts an outdoor swimming pool, separate maid quarters and a three-car garage. It is on the market with Christie’s International Real Estate for $7,350,000.
Forecast for the Los Angeles market
The Los Angeles property market remains strong, due in large part to the global diversity of its buyer base. Sellers, however, can be overly optimistic about the value of their homes, fueled in part by reports of the past year’s closed sales at near-record prices. Jeff Hyland, of Hilton & Hyland, says, “It would be beneficial for the market to do a little cooling”, yet feels there is confidence that prices will stay high in the year ahead but with slightly fewer transactions than last year.
About Christie’s International Real Estate and its affiliate Hilton & Hyland
Comprising the world’s most qualified real estate specialists in the luxury residential sector, Christie’s International Real Estate is an invitation-only affiliate network. The company has offices in London, New York, Hong Kong, Los Angeles and Palm Beach, with 140 global affiliates in 46 countries, including Beverly Hills affiliate Hilton & Hyland.
Established in 1993 as a boutique real estate firm to provide personalized service to buyers and sellers of luxury properties, Hilton & Hyland achieved more than $2.5 billion in transactions in 2015, and is recognized as the top luxury real estate firm in Southern California. Hilton & Hyland has a history of successfully selling the city’s most iconic real estate, including the Aaron Spelling Mansion and Frank Lloyd Wright’s Ennis House.