Luxury Defined:An insight into the market for high-end homes
Residential real estate is a tale of two markets - luxury and everything else. To fully understand the luxury property market, it's helpful to consider the following classifications.
Primary MarketsResort Markets
-
Global Economic Hub
e.g. London; Hong Kong; New York
-
Metropolitan
e.g. Austin, Texas; Durban, South Africa; Portland, Oregon
-
Suburban
e.g. Greenwich, Connecticut; Orange County, California; New Canaan, Connecticut
-
'Jet Set' Destination
e.g. Cote d'Azur, France; Turks & Caicos Islands; Cayman Islands
-
Weekender
e.g. The Hamptons, New York; Muskoka, Ontario, Canada; Saint Jean de Luz, France
-
Lifestyle & Regional Resort
e.g. Bordeaux, France; Santa Fe, New Mexico; Porto, Portugal
Entry price for luxury homes highest in economic hubs
The entry price for luxury homes varies greatly by market, from $750,000 in Durban, South Africa, to $8 million in Beverly Hills.
Average entry price for a luxury home by market type
- Primary Market
- Resort Market
- Global Economic Hub
- 'Jet Set' Destination
- Weekender
- Suburban
- Lifestyle & Regional Resort
- Metropolitan
So what does luxury look like?
What do you get for $5 million around the world?
Click to see properties
LondonGlobal Economic Hub
Hong KongGlobal Economic Hub
Austin, TexasMetropolitan
Cote d'Azur'Jet Set' Destination
Orange County, CaliforniaSuburban
New Canaan, ConnecticutSuburban
Muskoka, Ontario, CanadaWeekender
Turks & Caicos'Jet Set' Destination
The Hamptons, New YorkWeekender
Durban, South AfricaMetropolitan
Bordeaux, FranceLifestyle & Regional Resort
Santa Fe, New MexicoLifestyle & Regional Resort
- Close
London
Global Economic Hub
- 1,319 square foot- 2 bedrooms
Exemplary light and bright flat in West Eaton Place - Close
Hong Kong
Global Economic Hub
- 1,567 square foot- 3 bedrooms
Unique mid-rise in Bowen Road with tasteful decorations - Close
Austin, Texas
Metropolitan
- 3,542 square foot- 3 bedrooms
43rd floor modern apartment in The Austonian - Close
Durban, South Africa
Metropolitan
- 6,748 square foot- 3 bedrooms
Beautifully maintained art deco mansion - Close
New Canaan, Connecticut
Suburban
- 4,803 square foot- 5 bedrooms
Charming farm estate on 2.6 acres - Close
Orange County, California
Suburban
- 4,400 square foot- 4 bedrooms
Elegant Newport Coast estate with ocean views - Close
Cote d'Azur
'Jet Set' Destination
- 3,444 square foot- 5 bedrooms
Provencal villa in the best area of St. Paul de Vence - Close
Turks & Caicos
'Jet Set' Destination
- 5,960 square foot- 6 bedrooms
Grand contemporary estate on Long Bay Beach - Close
The Hamptons, New York
Weekender
- 6,000 square foot- 6 bedrooms
European inspired residence in Wainscott South - Close
Muskoka, Ontario, Canada
Weekender
- 5,100 square foot- 5 bedrooms
Lakeside estate with over 630 feet of shoreline - Close
Bordeaux, France
Lifestyle & Regional Resort
- 10,000 square foot- 5 bedrooms
17th century chateau on just under 100 hectares - Close
Santa Fe, New Mexico
Lifestyle & Regional Resort
- 13,400 square foot- 7 bedrooms
Heritage home just minutes from downtown
How long does it take to sell a luxury home?
Average number of days a luxury property spent on the market (as of December 31, 2014)
Global Economic Hub
Metropolitan
Suburban
Weekender
Lifestyle & Regional Resort
'Jet Set' Destination
Luxury homes sold fastest in Toronto and San Francisco
Average number of days a luxury property spent on the market (as of December 31, 2014)
Toronto
San Francisco
Los Angeles
New York
Sydney
London
Paris
Miami
Hong Kong
Luxury property, in general, took longer to sell due to a smaller pool of qualified buyers. In Miami, for example, it took an average of 80 days for a home to sell, but 142 days for a luxury property.
Embed Graph$100 million set the bar for trophy home sales in 2014
- Primary Market
- Resort Market
Although prices are generally higher in the city, the world's top 3 home sales in 2014 were not in Global Economic Hubs - and two of the top three were located in New York City's surrounding areas.
Embed GraphLuxury Defined
There is really no one definition of luxury - much like beauty, it's in the eye of the beholder. From $1.2 million entry level properties in Florida to the ultimate $147 million 'weekender' in the Hamptons, the definition of luxury changes depending on where you are.
If you have the means, there's a broad enough range across the markets for you to find your own definition of luxury.
All prices in USD; exchange rates based on an average for the year.
Source: Christie's Global Luxury Real Estate White Paper 2015.
© Christie's International Real Estate