Chat with us, powered by LiveChat

Wealth and Scarcity of Oceanfront Property Fuels Record Prices

March 4, 2016

According to a March 3, 2016 post on My Palm Beach Post, the $34 million record setting sale of a Delray Beach oceanfront mansion reflects ‘œwealthy buyers’ willingness to pay top dollar for oceanfront property’. This week’s sale of 921 South Ocean Boulevard for $34M is just the latest in a list of record setting oceanfront transactions.

Last week, Randy Ely and Nicholas Malinosky sold their exclusive oceanfront listing at 6125 North Ocean Boulevard at a record setting price $9 million above the previous Ocean Ridge record.

Similar record settings direct oceanfront deals have recently taken place in Manalapan for $33M and Jupiter Island for $38M. Just this week, a Palm Beach oceanfront mansion listed at $59M went under contract.

There is a high demand for brand new oceanfront homes and large direct ocean parcels thus resulting in a limited inventory. When asked about the current oceanfront market, luxury real estate agent Nicholas Malinosky of the Douglas Elliman Real Estate stated that ‘œthe cost of land has gone up, and it’s extremely difficult to find land in Palm Beach County’. As oceanfront real estate experts, the team of Randy Ely and Nicholas Malinosky has set several oceanfront records including the the 2015 sale of 901 South Ocean Boulevard which sold for $19M; the highest price at that time.

The wealthy buyers of these record setting oceanfront mansions have benefitted greatly from the economic growth in recent years. Chief economist for Florida Realtors, Brad O’Connor was quoted as saying, ‘œWe know that the wealthy are doing pretty well right now.’

The question remains: Is there a ceiling on just how high mansion prices can go? Palm Beach County’s mansion record remains untouched since 2008 when Donald Trump sold the property at 515 North County Road in Palm Beach for $95 million. There are several high-ticket active listings that have yet to sell. A Manalapan estate ($195M), the Palm Beach mansion at 1071 North Ocean Blvd ($74.5M), Greg Norman’s Jupiter Island estate ($55M reduced from $65M), and Celine Dion’s oceanfront estate ($45.4M reduced from the 2013 price of $72.5M). See Full Article

Ready to discuss the oceanfront real estate market? Randy Ely and Nicholas Malinosky are ready to help you sell or buy your next luxury real estate property.

Randy Ely and Nicholas Malinosky; The #1 Luxury Real Estate Team in the Beach Area.