New homes coming online in luxury Orange County markets are setting a new price—and design—standard.
This is particularly true for the coastal market of Corona del Mar, where a new batch of redeveloped homes have been coming online of late, garnering interest and high-priced offers from buyers looking for turnkey contemporary homes.
“High demand, increased land and construction costs and low inventory has created a perfect storm for these homes, which are setting the new price benchmark for the area,” said Paul Daftarian, whose namesake brokerage specializes in the CdM market.
Top developers in the area, including the likes of Patterson Custom Homes, Spinnaker Development and Nicholson Cos., have spent the past several years building new homes on a speculative basis. The result can be seen in recent sales comps in Newport Beach, specifically Cameo Shores, Cameo Highlands, the Village and Irvine Terrace.
Examples of recent sales and listings in the area include:
• 4533 Fairfield Drive in Cameo Shores recently sold for $9.9 million or more than $1,900 per square foot, “a new benchmark price that proves buyers are willing to pay for new,” said Daftarian, who was not involved in the sale. The home was built this year by Nicholson Cos., which paired with Teale Architecture and VALIA Design LLC.
• The priciest home sale in Corona del Mar this year was the $21.3 million listing of 2928 Ocean Blvd. The home was built this year by Van Cleve Construction, and finished by Slayman Design. Coldwell Banker’s Tim Smith brokered both ends of that deal.
• A Corona del Mar home at 2572 Tremont Lane has yet to come online but is expected to list for nearly $15 million. “That could sell before it even hits the market,” Daftarian said.
• Daftarian has the listing for 4527 Perham Road, an under-construction home that’s projected to be completed next year. It is priced at just under $17 million.
Contemporary Modern
“The new construction movement has made homes that aren’t that old feel very old, because the design elements have changed so drastically,” Daftarian said.
The new modern design trend is characterized by typical contemporary touches—angular, clean lines and minimalistic furnishings—coupled with soft colors, natural materials, large windows and open floor plans.
“People are gravitating toward this organic modern style, and are willing to pay top-dollar for a perfectly executed design,” Casey Lesher of Coldwell Banker, who also specializes in Corona del Mar.
New designs have “created a significant price gap” in the market, said Daftarian, with some homes garnering an additional $5 million than outdated properties.
Buyers aren’t just looking for new, Lesher notes.
“There’s new inventory that’s sitting. Buyers want a perfect design just as much, if not more,” he said.
Corona del Mar is a perfect market for architecture trends, as it’s not encumbered by design restrictions like other luxury areas in OC, according to Daftarian.
End User
Though recent redevelopment pushes have included plenty of single-home properties built on a speculative basis, rising costs have made the market somewhat prohibitive for larger developers.
“It’s too expensive for them to make a profit,” Lesher said.
There’s a growing demand from end users, however, who are willing to front the costs for a home they are unable to find in the current market.
“The top builders are booked, with demand coming from buyers wanting to invest in their perfect home,” Lesher said.
