16. July 2018
Trophy Homes: The Pinnacle of the Real Estate Market
Christie’s International Real Estate has published its annual study, "Luxury Defined," which – among other topics – focuses on trophy homes – the most luxurious private residences. The most expensive trophy home sold last year held the stunning price tag of $360 million.
For a property to be considered a “trophy home” it has to be an exceptionally high-end residence, house, or apartment with first-class attributes, the most important being its location, but also privacy and safety, its architectural value, size, views, as well as its amenities. Globally, only roughly 2% of the top-tier properties are considered trophy homes.
According to Luxury Defined, resale homes still constitute most of the trophy homes sold on the market, but new builds are on the rise. For example, in Hong Kong, where nine of the top ten most high-priced properties were sold last year, new builds sell at higher prices than similar older homes, which are torn down and rebuilt. There, buyers place little value in a home’s provenance. In comparison, on the European market a property’s history is a significant selling point.
So-called “spec” homes, short for speculative trophy homes, are a new trend. These are residences that are not custom built for a specific client. Instead, developers build them based on the estimated taste and preferences of a potential target group, and offer them for sale once they are move-in ready.
Last year, the Pollock’s Path Estate in Hong Kong’s Victoria Peak was sold to a buyer for an unparalleled $360 million, a record for a private home that year. This year’s record-breaking price tag was held once again by a residence in Hong Kong that was sold for $178 million. Also in the top ten international property sales this year are homes in Malibu, New York, Los Angeles, Hawaii, and on the French Riviera. “For our July newsletter, we have selected several ultra high-end properties from around the world to inspire our clients,” says Veronika Krejcárková, International Property Consultant at Svoboda & Williams.
“In the Czech market, trophy homes are residences that sell for over 100 million Czech crowns. But truly spectacular properties can be valued up to half-a-billion,” adds Veronika Krejcárková.
Christie’s regular Luxury Defined report is based on data collected from more than eighty premium real estate companies from around the world, including Svoboda & Williams, who are Affiliates of the Christie’s International Real Estate network.