Luxury Real Estate Sales: The Impact Of The Covid-19 Pandemic In 2020

Sales of luxury real estate fell off in 2020 thanks to the Covid-19 pandemic. New York City, an epicenter of luxury home sales, faced a staggering drop of 46.7% in the third quarter compared to 2019. As the pandemic transformed daily life and prompted many wealthy residents to flee the city, alternative markets such as Palm Beach, Los Angeles, the Hamptons, and Greenwich, Connecticut saw a surge in high-end home sales. This shift highlighted the growing demand for larger homes that accommodate work-from-home setups, homeschooling, and home gyms. For instance, in Los Angeles, high-end home sales spiked by 87.5%, while Palm Beach and Greenwich also reported significant gains of 33.5% and 68.2%, respectively.

The overall real estate landscape in 2020 was marked by stark contrasts. Of the top ten real estate deals in the U.S., two surpassed the $100 million mark, both located in Los Angeles. In total, L.A. boasted five of these top deals, while the Hamptons had two, Manhattan one, and Palm Beach one. This trend underscores how certain markets thrived as wealthy individuals sought refuge and investment opportunities in the face of uncertainty.

Top Luxury Real Estate Deals of 2020

Amid the turmoil of the pandemic, some remarkable real estate transactions took place. The luxury market showcased incredible properties that fetched astronomical prices, illustrating the resilience and adaptability of the industry. Below are some notable sales:

#10. Hamptons Compound

Located in East Hampton, New York, this stunning 3.4-acre oceanfront estate sold for $67 million. The estate features an 8,000 square foot mansion, a waterfront swimming pool, and a separate guesthouse with its own pool. Previously owned by former Morgan Stanley executive Charles Phillips, this property exemplifies luxury living in a sought-after location.

#9. Foothill Estate

This Beverly Hills property, purchased by David Geffen for $68 million, was initially listed for $125 million. Spanning 18,548 square feet, the estate is situated on three acres and includes an 85-foot infinity pool, gym, screening room, art studio, and a motor court capable of accommodating 25 vehicles. The home is a testament to modern luxury and sophistication.

#8. Kennedy Winter White House

In Palm Beach, Florida, the historic mansion formerly owned by the Kennedy family sold for $70 million. This property, once a winter retreat for President John F. Kennedy, is set for extensive renovations by its new owner. Its Mediterranean-style architecture and rich history make it a unique addition to the luxury market.

#7. Waterfront Palm Beach Estate

This 2-acre lakefront estate, located on S. Lake Trail in Palm Beach, fetched $71.85 million. Sold by financier Robb E Turner and his wife Lydia, the estate showcases the high demand for luxurious properties in desirable locations.

#6. Duo Estates in Trousdale

Two neighboring properties in Los Angeles' Trousdale Estates were purchased for $75.5 million by a company connected to Taiwanese billionaire Terry Gou. If combined, these estates could become one of the largest private compounds in the Hollywood Hills, demonstrating the appeal of expansive, luxurious living spaces.

#5. Hamptons Compound

Another notable sale in the Hamptons was this Southampton property, which sold for $84 million. This seven-acre modern estate was previously owned by Calvin Klein, illustrating the allure of high-profile ownership in the luxury real estate market.

#4. Owlwood Estate

The Owlwood Estate in Los Angeles sold for $88 million, a significant drop from its original listing price of $180 million. This Italian Renaissance-style mansion, previously owned by celebrities like Tony Curtis and Sonny and Cher, reflects the historical significance and grandeur of luxury properties.

#3. 220 Central Park South Penthouse

In New York City, the 220 Central Park South penthouse sold for $99.9 million, marking it as one of the highest priced transactions in Manhattan. This property includes a smaller unit on a lower floor, offering flexibility for staff or guests, enhancing its appeal.

#2. Jeffrey Katzenberg Estate

Beverly Hills saw the sale of Jeffrey Katzenberg's estate for $125 million. The property, sold through an off-market deal to WhatsApp founder Jan Koum, exemplifies the high-stakes nature of luxury real estate transactions.

#1. The Warner Estate

Lastly, the Warner Estate in Los Angeles was acquired by Jeff Bezos for a staggering $165 million. This 1930s property, designed for Warner Brothers' president Jack Warner, features a nine-hole golf course and multiple guest houses, solidifying its status as a premier luxury residence.

The luxury real estate market's performance in 2020 illustrates the dynamic shifts brought about by the pandemic. While New York City struggled, other markets flourished, revealing the changing preferences of wealthy buyers and their desire for spacious, remote properties.