Each of these markets reflect distinct trends shaped by unique economic and regional influences, yet one common theme prevails: discerning buyers continue to seek properties that deliver value and partners that help them discover it, whether that’s immediate livability, rarity, or prime location.
Across these alpha markets, we’ve observed a nuanced shift in buyer priorities. In the Hamptons, while activity remains high, there is a distinct movement toward price points in the $10-$20 million price segments, and inland properties, which has made above the highway properties soar in value. This change is fueled by the increasing scarcity of oceanfront properties and the limited availability of turn-key options, coupled with rising land values and building costs that prompt buyers to consider off-ocean locations as alternatives. As a result, inland trades have surged, and the $10 million to $20 million range has experienced a major jump in volume. So despite, or perhaps because of, focus on lower price segment of the ultra-luxury market this quarter, Water Mill has emerged as the third-most expensive zip code in the U.S., trailing only Sagaponack and East Hampton.
In New York City, the luxury market presented a mixed picture. While the overall sales volume saw a slight 6% decline, a little less than a $30 million decrease across the whole market, individual segments like high-value new developments performed well, with an 18% increase in volume and a 165% increase in average sale price, from $17.7 to $47 million.
Midtown West came back from its 2021 peaks as a standout area, more than tripling its sales volume year over year, from $165 million to over $500 million. Its dramatic growth underscores that despite inter-quarter fluctuations, demand in Manhattan is continuous and increasing over the long term across all its neighborhoods.
The third quarter was perhaps one of the most notable in recent years in South Florida. When we began reporting on South Florida as an alpha market and opened our operations there in early 2022, many touted the year’s slumps as a sign that the pandemic demand was temporary, while we had the foresight to see it as the natural maturation of the market. Four years later, not only is the region not slowing down, with a 38% increase in volume year over year; Bespoke’s work in the area has helped Miami to become the 4th most expensive zip code in the US. Our sales like 18 La Gorce Drive with a last ask of $132 million, 6901 Fisher Island Drive at Miami Beach, with a last ask of $42.5 million, or David Beckham’s $72 million purchase on North Bay Road demonstrate just how massive the market opportunity is in both the short and long term. In just one example, this quarter saw a 200% increase in sales quantity on waterfront properties—the most exclusive there is in the region—from 5 sales in third quarter last year to 15 this year.
We remain as committed as ever to providing you with insights and access to these exceptional opportunities, and we look forward to guiding you through the remainder of 2024.
