Mansion sales in Palm Beach Gardens lead the U.S.

Average sale price for mansions was $2.58M in the second quarter

TRD MIAMI /
Oct.October 26, 2015 12:45 PM

The mansion market in Palm Beach Gardens is white hot, with prices for homes valued at $1 million or more soaring 42 percent in the second quarter from a year earlier, the fastest rate in the country, according to real estate data firm Redfin.

The average sale price for mansions in the city of 52,000 was $2.58 million in the second quarter. So what accounts for all that strength?

“First, the area between the Jupiter inlet and the Palm Beach inlet is a great location,” Rob Thomson, owner of Waterfront Properties in Jupiter, told The Real Deal. “That makes it very accessible for boats. There’s a lot of property on the water.”

Thomson said housing communities such as BallenIsles, where the tennis superstars Venus and Serena Williams have a home; Frenchman’s Creek; Frenchman’s Reserve; and Mirasol also contribute to the market’s strength.

“It’s two minutes from shopping and restaurants, including the Gardens Mall and Legacy Place, and it has great schools, such as [the] Benjamin [School],” he said. “It’s also only 20 minutes to the Palm Beach Airport. It’s just a prime location.”

Low inventory is pushing up prices, Dianne West, a broker associate with Corcoran Group, told TRD. She has sold 15 to 20 homes in Palm Beach Gardens this year at prices ranging from $1.5 million to $8 million, up from 10 to 15 homes last year. That includes a home in Old Palm and new construction near U.S. 1.

Thomson said sales prices range from $1 million to $15 million, with the hottest spot between $1 million and $7 million. “The homes are getting bigger all the time, and prices in North County have definitely exceeded their 2005 to 2006 highs,” Thomson said.

Many of the purchasers are retiring baby boomers moving south. West said that all her buyers this year are from the Northeast. Thomson said a significant number of foreigners are snapping up homes too, particularly Europeans, including French and German buyers. South Americans stick mostly to the Miami area, with its cultural affinity to Latin America, he said.

Acquirers from Asia will be the next wave, Jack McCabe, CEO of McCabe Research & Consulting in Deerfield Beach, told TRD. Most of the mansion buyers in Palm Beach Gardens are “owner-occupiers looking for a primary or wintertime residence,” he said.

McCabe pointed out that the northern county also has a huge golf community, including players, such as Tiger Woods in Jupiter Island; coaches; and companies, such as the Nicklaus Cos. in North Palm Beach.

McCabe warns against getting too excited over the second quarter numbers for mansion sales, as they could have been inflated by a few big transactions.

But some experts see the strength continuing. “It’s a self-reinforcing cycle,” Thomson said.


Related Articles

arrow_forward_ios
The Palm Beach Gardens office towers

DiVosta family sells Palm Beach Gardens office towers for $80M

DiVosta family sells Palm Beach Gardens office towers for $80M
12251 Tillinghast Circle and Elin Nordegren (Credit: Google Maps and Gustavo Caballero/Getty Images)

Tiger Woods’ ex-wife buys Palm Beach Gardens home

Tiger Woods’ ex-wife buys Palm Beach Gardens home
Jack Niklaus and a rendering of the Panther National Clubhouse (Getty)

Jack Nicklaus to design golf course at Avenir in Palm Beach Gardens

Jack Nicklaus to design golf course at Avenir in Palm Beach Gardens
Waterway Café (Facebook)

Waterway Cafe in Palm Beach Gardens sells for $13M

Waterway Cafe in Palm Beach Gardens sells for $13M
Jeff Bezos and 700 Lincoln Road (Getty, Lincoln Road BID)

Amazon to open store on Lincoln Road

Amazon to open store on Lincoln Road
NAI/Merin Hunter Codman Chairman Neil Merin and Golden Bear Plaza

Golden Bear Plaza office complex in Palm Beach Gardens sells for $50M

Golden Bear Plaza office complex in Palm Beach Gardens sells for $50M
Stephen Gravett, CEO of Kennedy Homes and a rendering of Trevi Isle home community

Kennedy Homes sells Palm Beach Gardens community amid allegations of mismanagement

Kennedy Homes sells Palm Beach Gardens community amid allegations of mismanagement
Ara K. Hovnanian

K. Hovnanian to build homes at Avenir in Palm Beach Gardens

K. Hovnanian to build homes at Avenir in Palm Beach Gardens
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...