Homes only billionaires can afford

Park Bel Air, an 11-acre residential development currently under construction in Los Angeles, could become the worlds first billionaires only estate. The Wall Street Journal reported that asking prices for homes here start at US$115 million and go as high as US$150 million with upgrades and custom furnishings.

Some of the upgrades include a 15,000 sq ft guesthouse, Champagne room and 2,100 sq ft spa with separate steam and massage rooms. Other homes being built at Park Bel Air come with an IMAX movie theatre and closets that include catwalks and built-in cameras for viewing outfits from multiple angles.

There are probably only about 3,000 people (in the world) who can afford this, said Barry Watts, President of Park Bel Airs developer Domvs London. The buyer needs to be a billionaire.

Wealthy foreign buyers who usually look for second homes in New York, London or Monaco have started to target Los Angeles, which is one reason for the major spike in prices, noted the article. There are currently over 50 houses on the market in Southern California with asking prices of US$20 million. That could change when a new house, also in Bel Air, hits the market next year. According to the developer Nile Niami, the super fancy home will have an asking price of US$500 million, or half a billion dollars.

Several real estate experts told the newspaper that the high asking prices dont normally end up being the price the house sells for. Jonathan Miller, head of New York-based appraisal firm Miller Samuel, pointed out that the pricing is more of a gimmick and less of an attempt to put a real value on the home. He stated, Its almost as if there is no shame in wildly overpricing a listing anymore.

Only three homes in California have sold for over US$100 million with the most expensive one being the sale of a US$117 million property to Softbank CEO Masayoshi Son in the neighbourhood of Woodside, reported the Los Angeles Times. The highest price ever paid for a home in Los Angeles was US$102 million, which took place in early 2015.

This article was first published on DDproperty.com, Thailands leading property site.

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