International buyers have contributed to the steady growth of prices in the luxury market over the past two years.
Foreign buyers, by some industry numbers, account for upward of 30% of sales in the market.
Teles Properties, which has offices in Newport Beach and Laguna Beach, as well as Los Angeles and Santa Barbara counties, works with foreign buyers throughout the world and has an extensive database of foreign contacts.
Sharran Srivatsaa, president and chief operating officer, said that last year $152 million in direct luxury sales at the company came from buyers in that database, which he said is poised to yield more sales this year.
In many cases, he said, international buyers—particularly those from Asian countries—are seeking a safe haven for their investments, as well as a way to avoid prohibitive real estate taxes, such as China’s controversial 20% tax on capital gains from sales of second homes. The tax, intended to slow the growth of China’s housing boom, has had the unintended consequence of driving wealthy Chinese buyers to look outside their country for property investments.
Srivatsaa said luxury properties in Southern California hold their value over time.
Kim Bibb, cofounder of Villa Real Estate in Newport Beach, said many domestic buyers are also looking for places to invest their money.
“With uncertainties in other investment areas, real estate is a reliable option that appreciates over time,” she said.
Bibb specializes in oceanfront properties, including in Newport Beach, Balboa Island and Balboa Peninsula.
She said she’s seen a 20% increase in housing prices in this year alone but that the meteoric price increases of the past 18 months will level off in the year to come.
Dramatic Dwelling
The estate at 170 Emerald Bay is on a 10,332-square-foot lot with what real estate professionals describe as one of the most dramatic views of the bay. The home has views of Laguna and the south coastline, and it overlooks the surf line.
The home has 6,000 square feet of living space, which includes six bedrooms and 6 ½ baths, a great room, maid’s quarters, a gym and a wine cellar.
One of its most striking features is a formal entry with a retractable skylight. The two-story living room has floor-to-ceiling windows that frame the Emerald Bay beach.
Outside, a stone patio wraps around the house, offering views from every angle. The home sold on Oct. 17 for $15.5 million, down from its August listing price of $17 million. Harold Noriega of HÔM Sotheby’s International Realty listed the home. Rod Daley of Coldwell Banker Previews International acted as the buyer’s agent.
Two-In-One
The oceanfront home at 1115 E. Balboa Blvd. on Balboa Island sold on Oct. 7 for $6 million, under its July asking price of $6.5 million. The 2,500-square-foot home sits on two contiguous lots for a total property footprint of nearly 5,000 square feet. It’s on one side of the double lot, while the other side features a large grassy area—a rare find on the island.
The three-bedroom, four-bath home has an elevator, four-car enclosed garage, an upstairs deck with beach and bay views, and a patio that fronts the beach boardwalk.
The vacant portion of the lot can also be sold separately for the opportunity to build a custom beachfront home.
Rob Norquist of HÔM Sotheby’s represented the seller, and Carol Lee of Surterre Properties Inc. represented the buyer.
Straight From a Magazine
If the home at 16 Bay Island in Newport Beach looks familiar, there’s a good reason: The six-bedroom, four-bath home has been featured in California Homes magazine as an example of “the perfect beach house.”
Its former owner, Sue McKeehan, a professional designer, designed its stylish interiors and vintage character. The 2,900-square-foot home sold on Sept. 9 for $5 million, meeting its June listing price.
The traditional-style house was built in 1915 and is situated on a nearly 3,400-square-foot lot on this private island of 23 waterfront homes.
It has a slip for a large boat and side-tie, as well as a private pier. The home, gracing the shores of Bay Island, features vistas of Newport Harbor’s main turning basin, all of its boating activity, and the snow-capped San Bernardino mountains in the winter.
Steve High of Villa Real Estate represented the seller, and John Yonai of Tierra West represented the buyers, a Yorba Linda family that will use the home as a second beach house in the Newport Beach Peninsula area.
