Luxury homes worth over $10 million rise in Palm Beach, Miami and New York despite the global downturn

While the rest of the world sees a downturn in the ultra-luxury home market, the playgrounds of the rich and the richest – New York, Miami and Palm Beach – are cashing in like never before.

According to a new report from real estate firm Knight Frank, sales of homes priced at $10 million or more went through the roof in the second quarter — with Palm Beach leading the charge with a sharp 44% increase. Miami wasn’t far behind with a 27% increase and New York’s fanciest addresses saw a 16% increase.

New York takes the crown as the reigning champion of high-end digs, boasting 72 sales over $10 million — its highest total in two years.

Miami followed suit with 55 big ticket sales, while Palm Beach had 36.

Los Angeles also came out on top at 42, though the city took a 29% hit — likely thanks to the new “mansion tax,” which imposes a 5.5% fee on properties that sell for more than $10 million.

Best deal of the quarter? $150 million for Palm Beach’s only private island – raised by Australian infrastructure tycoon Michael Dorrell. Palm Beach wasn’t done there; in June, a historic 3.2-acre estate went for $148 million.

Not to be outdone, Manhattan joined the mega-sale club in July with the Aman New York penthouse changing hands for $135 million. The developer of the project, Vlad Doronin, bought it for himself.

Even as demand cools in other high-end markets, ultra-wealthy buyers are still willing to pay record prices for these rare gems. Why? “Significant wealth creation has supported growth in the global super-prime sales market,” Liam Bailey, global head of research at Knight Frank, told CNBC.

He added that the transformation of hotspots such as Dubai, Palm Beach and Miami “has more than offset the slowdown experienced by some more mature markets”.

Globally, however, things are not so rosy.

Knight Frank’s report shows that sales of $10 million homes in 11 major luxury markets fell 4% over the past year to $8.5 billion.

Dubai has become the world’s new darling of high-end real estate, boasting a staggering 85 sales in the second quarter alone. The city’s friendly tax and regulatory policies have attracted the ultra-rich from around the world, transforming it from 23 sales in 2019 to 436 over the past year.

London, on the other hand, is not doing so well. Sales of $10 million homes there are down 47% as the specter of higher taxes has the wealthy thinking twice.

The good news for high-end estate agents: Although most of these cash-strapped buyers aren’t borrowing to buy, falling interest rates around the world could boost sales in the coming months.

And if last week’s record 29 signed contracts for $4 million properties in Manhattan are any indication, the luxury market could be in for a hot end to the year.

“With rates moving lower, total transaction volumes are likely to increase in 2025,” Bailey told the media.