Which home will sell for $100 million in 2014? 夏威夷房地产

Which home will sell for $100 million in 2014?

By: | CNBC Reporter and Editor
         

Source: Sotheby’s International Realty
The De Guigne Estate, Hillsborough, Calif.

At least a half dozen homes in America are priced at $100 million or more.

The question is which—if any—will actually sell for nine figures in 2014?

The $100 million sale seems to have become an annual rite of passage for the luxury real estate market since the end of the financial crisis, a number that seems to sum up both the rising wealth of the super rich and their growing appetite for trophy properties.

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In 2011, Yuri Milner bought a mansion in Los Altos Hills, Calif., for $100 million. In 2012, Stan Kroenke bought a $132.5 million Montana ranch. And this year, a mansion in Woodside, Calif., sold to an unnamed buyer for $117.5 million.

There is no shortage of homes officially listed for $100 million or more. And there are even more $100 million-plus “whisper listings”—homes that aren’t publicly on the market but are quietly seeking buyers at that price.

Yet most homes priced at $100 million or more end up selling at a fraction of that price. The Versace mansion in Miami, also known as Casa Casuarina, was on the market this year for $125 million. It sold at auction for $41.5 million. The Candy Spelling Estate in Bel-Air, Calif., was listed for $150 million, but sold to heiress Petra Eccelstone for $85 million.

Here are some of the candidates, and their likelihood to break the $100-million mark next year.

Copper Beech Farm, Greenwich, Conn. Asking Price: $140 million.
Copper Beech is a stunning piece of land, with 50 acres and 4,000 feet of water frontage, in one of America’s richest neighborhoods. But brokers say it’s mainly a development play, since the house is not all that spectacular. The question is whether a developer would be able to spend $100 million, build homes on the site and still make enough of a return.

Owlwood Estate in Holmby Hills, Calif. Unofficial Asking Price: $150 million.
California seems to be the land of $100 million sales recently, and this home could be a contender. It’s not officially listed, but brokers say the Tuscan estate, with 10 acres and a classic 12,000-square-foot mansion could well trade for nine figures.

The de Guigne Estate, Hillsborough, Calif. List Price: $100 million.
This 47-acre property has been owned by the same family—the de Guignes—for more than 150 years. The 16,000-square-foot home and grounds are just 20 minutes from San Francisco, making it ideal for a newly minted tech billionaire or foreign buyer interested in a foothold in the tech world.

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Steve Cohen Duplex, New York City. List Price is $115 million.
Embattled hedge fund billionaire Steve Cohen is selling this massive duplex at One Beacon Court in Manhattan. The apartment spans about 9,000 square feet with double-height windows and big views of the city. There are more and more sky-high duplexes coming on the market in the city, but brokers say Cohen’s pad is a solid contender for a nine-figure sale.

The Residence at River House, New York City. List Price $130 million.
River House is an unusual offering, to say the least. It’s a five story building that currently serves as a private club and would need a huge investment to turn into a new private residence. But it’s a colossal 62,000 square feet and has a riverfront garden and 62-foot indoor swimming pool. Probably only a Middle East royal or a Russian oligarch would consider the purchase.

Crespi Hicks Estate, Dallas. List Price $135 million.
Private equity chief Tom Hicks is asking $135 million for his 25-acre estate in Dallas. It’s a unique property, with more than 40,000 square feet of living space. But breaking the $100 million would be a big leap in the Dallas market.

—By CNBC’s Robert Frank. Follow him on Twitter @robtfrank.

 

Australia among top destinations for Chinese property investors

SYDNEY – Australia has become one of the most popular destinations for Chinese property investors, with nearly A$6 billion ($5.42 billion) invested by Chinese buyers in the local real estate market in the last financial year, local media reported on Monday.

 

 

Australia among top destinations for Chinese property investors

Chinese rushing for overseas properties 

 

Australia among top destinations for Chinese property investors

Top 10 trading partners of the Chinese mainland 

Chinese nationals are estimated by some financial institutions to be buying around 12 percent of the country’s new homes, according to the Australian Broadcasting Corporation (ABC).

The Australian Federal Parliament’s House Economics Committee is reviewing the foreign investment laws amid fears that the local property market prices are being pushed up by overseas investors.

Kelly O’Dwyer, who chairs the House Economics Committee, told the Radio National Breakfast on Monday that the inquiry into foreign investment rules would determine whether they are still achieving the purpose, which ensures that overseas money adds to Australia’s housing stock and does not push up prices for locals.

A report by global financial services firm Credit Suisse predicted that by 2020, about 18 percent new Sydney homes would be bought by Chinese buyers while in Melbourne new home market, Chinese buyer would grow to 14 percent.

Up to A$44 billion ($39.7 billion) of property investment is expected from Chinese investors in the seven years to 2020, the report says.

 

 

Australia among top destinations for Chinese property investors

 

Australia among top destinations for Chinese property investors

China’s rich fleeing the country—with their fortunes

It’s one of the largest and most rapid wealth migrations of our time: hundreds of billions of dollars, and waves of millionaires flowing out of China to overseas destinations.

According to WealthInsight, the Chinese wealthy now have about $658 billion stashed in offshore assets. Boston Consulting Group puts the number lower, at around $450 billion, but says offshore investments are expected to double in the next three years.

A study from Bain Consulting found that half of China’s ultrawealthy—those with $16 million or more in wealth—now have investments overseas.

And it’s not just the money that’s exiting the country. The wealthy are increasingly following their money overseas.

A study by Hurun and Bank of China found that more than half of China’s millionaires are considering emigrating or have already taken steps to move overseas.

Many experts say that the wealthy are moving to protect their wealth, their health and their families. With China increasingly cracking down on ill-gotten gains and corruption, many of the politically connected wealthy are looking for safer havens abroad.

They are also looking for better environments for their children—with better schools and cleaner air.

“Whether it is the perceived political instability or perhaps lack of educational opportunities, or pollution in the urban environments there, when you put those altogether … and you mix that with the wealth that’s present in China now, it really makes sense that there are folks there looking to explore these opportunities,” said Peter Joseph of the Association to Invest in the USA, which represents investor-visa programs in the U.S.

Some say the capital flight and millionaire migration are normal consequences of rising wealth. Oliver Williams, of WealthInsight, said that the Chinese wealthy have about 13 percent of their wealth overseas—below the global average of 20 percent to 30 percent.

Still, much of China’s offshore wealth is moved illegally or in the shadow economy. China maintains a closed capital account and Chinese citizens are generally not permitted to move more than $50,000 out of the country. So reliable data on exactly how much money is moving out remains unclear.

But the global buying spree by wealthy Chinese suggests the numbers may be far higher than reported. Wealthy Chinese buyers purchased more than $8 billion worth of residential real estate in the U.S. in the 12 months ended in March, according to the National Association of Realtors. China’s share of foreign-purchased residential real estate has jumped 50 percent since 2011.

One of China’s richest women, Zhang Xin of developer SOHO China, recently bought a townhouse in Manhattan for $26 million, according to reports.

China’s wealthy also are pouring money into collectibles and art. Billionaire Wang Jianlin and his company Dalian Wanda last month bought a Picasso at a Christie’s auction for $28 million. Bidding from Chinese buyers was strong throughout the auctions, according to dealers and gallerists.

It’s also going to wine and diamonds. Diamond dealers say more than half of today’s collectible diamonds are going to Chinese buyers. And on Saturday, the world’s most expensive case of wine—1978 Romanée-Conti—sold in Hong Kong for $476,000.

—By CNBC’s Robert Frank. 

Aloha, Condos do well on Kauai and Hawaii island

Aloha,   Sales of single-family homes decline on both islands, with median prices mixed. Condominium sales rose in October on Kauai and Hawaii island, but the same wasn’t true for single-family houses on the same islands, where there has been a general trend of higher demand from home buyers this year.  A report released Tuesday by Hawaii Information Service showed some easing in demand last month, though most homes were sold at higher prices compared with the same month last year.

The biggest gain in sales occurred for condos on Hawaii island, where volume jumped 38 percent to 62 last month from 45 a year earlier. The median price edged up 2 percent to $219,475 from $215,000 in the same period. The median is a point at which half the sales were for more and half for less.   In Hawaii island’s single-family house market, the number of sales slipped 3 percent to 153 last month from 157 a year earlier. Though the decrease was small, it compares with a 17 percent gain in sales over the first 10 months of this year. The median price for Hawaii island single-family houses declined 10 percent to $269,000 from $299,999.

On Kauai, single-family house sales declined 23 percent to 30 last month from 39 a year earlier. For the first 10 months of this year, sales were up 11 percent. The median price for Kauai single-family houses jumped 43 percent to $586,000 from $410,000. The increase was driven in part by fewer sales at the lower end of the market in the Kawaihau region, according to Hawaii Information data.  In October 2012, 21 of the 39 single-family houses sold on Kauai were in the Kawaihau region. The median price for the 21 homes was $385,000. Last month there were just seven sales in the same area for a median $470,000.

Most home sales on Kauai last month happened in the Koloa area, where there were nine sales for a median $675,000 compared with eight sales for a median $489,500 last October.  In Kauai’s condo market, there were 33 sales last month compared with 29 a year earlier, reflecting a 14 percent gain. The median price was up 28 percent to $320,000 from $250,000 in the same period.

Wealthy Chinese seeking overseas residency

There is one Chinese export product that is seemingly unstoppable at the moment – millionaires. Porsche-driving Louie Huang lives in Shanghai, having made his money – a lot of money – in property.
He is having a 200-room villa built here and owns properties in at least five other cities around the world. But while his business interests remain in China, he has also stumped up the sizeable investment needed to buy himself residency rights in Singapore. He says it is for a number of reasons, in particular the opportunity it might bring his future family. But he admits that for many of his wealthy friends it is a sense of insecurity which is leading them to ponder a life outside China.
“Most of them think I’ve got so much money here but one day maybe the government will change the policies and take it all back,” he says.  There is mounting evidence to show that China’s super-rich are heading for the exit.
At a seminar in a plush office suite with a spectacular view of Shanghai, Chinese entrepreneurs with at least half a million dollars to spare are being encouraged to invest in the US economy.
The EB-5 visa scheme is an investment-for-residency programme, handing out green cards as long as the investment can be shown to have created at least 10 jobs.
In 2006 Chinese nationals were granted just 63 visas under the scheme. Last year the figure had leapt to more than 2,408 and this year it is already above the 3,700 mark. It means a tidal wave of Chinese money is currently pouring into US infrastructure projects.
The scheme is open to any nationality but Chinese investors now make up 75% of the total.
China’s rigid and opaque political system is perhaps one reason for the wealth-drain, particularly in a year in which there is due to be a changing of the guard at the very top of the Communist Party.
There are certainly lifestyle concerns too. Like Louie Huang the wealthy are often seeking cleaner air and a better education for their children. Enjoying the best things in life also matters. According to the Shanghai Travelers’ Club, a luxury travel club for the Chinese Elite, traveling abroad is a strong sign of social status, and acquiring a property in cities like New York, Las Vegas or London is the ultimate symbol of success in life for the wealthy Chinese.
Add to that the fears that China’s decade-long economic boom may be losing steam and it is perhaps not surprising that China’s rich are on the run. The EB-5 data is not the only evidence. A survey last year of almost 1,000 Chinese dollar millionaires found 60% considering moving overseas.
China is now one of Australia’s biggest sources of migrants with figures released for 2011 showing that it had overtaken the UK for the first time.
And American estate agents have been reporting a big jump this year in the number of high-value home buyers from mainland China and Hong Kong.
The party is far from over for China’s wealthy, including Louie Huang – who has just opened a brand new nightclub. As his patrons sit around tables containing a dozen or more bottles of champagne it is abundantly clear that many people are still making money here.
But in these economically uncertain times, there is a growing temptation for those with money to take it, and themselves, somewhere a little safer.
Source: BBC News