The new price of luxury has skyrocketed to $40 million.
This new $40 million listing price is a result of a new creation of global wealth, a demand from oversea and domestic buyers, and other home sellers mimicking asking prices, according to The Wall Street Journal.
In Brooklyn, alone, there have been several homes on the market for comparable grand prices. In February, it was reported a 17,500-square-foot brownstone in Brooklyn Height was listed for $40 million. A close second was listed for 32 million.
The property, which is located on Pierrepont Place, was constructed roughly 1856 and is known as the “low mansion.” It has 15 bedrooms, 16 bathrooms, fireplaces with stone surrounds, high ceilings a grand staircase with a central skylight and more than 9,000 square feet of outdoors pace. It is currently subdivivded into eight apartments, which are rented on short-term leases.
Keil is former president of Republic New York Corp, which was acquired by HSBC bank in 1999.
According to Jonathan Miller of Manhattan-based Miller Samuel Real Estate Appraisers, it has become common for agents and home sellers alike to put a property on the market for $40. In the last five quarters, 37 homes sold between $30 million to nearly $50 million. In January, it was reported; three Miami penthouses were listed for $50 million. Prior to that, the highest priced home in the South Florida location was listed for $47 million. Even in Naples, there were two estates listed for $40 million back in 2012.
Real estate website Truila reported, over the past year, more than 300 homes sold nationwide between $35 to $49 million. According to Truila, this was a 24 percent increased compared to 2014.
While a $40 million listing is becoming more and more common, it may take a while for the home to sell. At this high of an asking price, prospective real estate buyers tend to take their time. According to brokers, at this price, it helps if the home comes fully furnished.
Even developers are willing to dish out $40 million on real estate purchases. Last December, according to Crain’s New York, RedSky Capital purchased two Williamsburg sites for a record setting $40 million.
(Photos via The Corcoran Group)