Orange County’s coastal region, which stretches from the tip of Seal Beach at its northern edge to the end of San Clemente to the south, includes the most significant communities in the local luxury market.
Cameo Shores, listed in a recent ranking of the richest U.S. neighborhoods as the eighth wealthiest, falls into that category. Pelican Hill, Corona del Mar, Harbor Island, and Emerald Bay are also among the areas that command some of the highest-priced homes in the state.
There are currently four homes with a $35 million-plus list price in Laguna Beach alone, including the most expensive listed in Orange County, a $60 million oceanfront villa in Irvine Cove.
Newport Coast boasts four homes that top the $20 million mark.
What is it about a home that makes it possible to fetch such an ultra-luxury price tag?
“The old adage is ‘location, location, location,’ ” explains luxury real estate specialist Tim Smith of Coldwell Banker Previews International, who along with Jeff Hyland of Hilton & Hyland, provides the listing for a $49.5 million Irvine Cove estate at 2431 Riviera Drive in Laguna Beach.
“There are roughly 2,800 billionaires worldwide, according to the most recent data,” he said. “These billionaires are using real estate to diversify their portfolios. With the uncertainty in the world stock markets, luxury real estate assets are a safe haven. It is becoming a currency. And these investors want real value. Value is often based on location.”
He said it’s not unusual for a billionaire to own five or six ultra-luxury homes spread over prestigious areas, including Orange County.
“What I find interesting,” he said, “is that this year, we have more than doubled—almost tripled—the number of homes sold above $14 million than last year in Orange County. This shows us that the rich have more money than ever to invest, and they are investing it here.”
While the prices of ultra-luxury homes in Orange County are high, Smith said he believes the Orange County coastal market is undervalued when compared to other major metropolitan luxury markets, such as the Hamptons on the East Coast or San Francisco.
“Investors get so much more for their money in coastal Orange County properties,” he said. “Look at the home I’m representing: 180 feet of oceanfront access, one of only five (such) homes in Irvine Cove—which is the ‘country club,’ so to speak, of Orange County coastal areas—and an almost triple-wide lot. All that for $50 million.”
Luxury sales in general were steady in September and October, with 17 homes worth more than $4 million trading hands since the last week of September. Here are a few of the highlights:
Reflections in the Moonlight
The five-bedroom, six-bath, ocean-view estate at 37 Moonshell in the hills of Newport Coast offers 7,358 square feet of living space that blends a Mediterranean Villa charm with contemporary decor and modern amenities.
It sold on Sept. 30 for $8.8 million, down from its July asking price of $9.6 million.
The home sits on a 0.34-acre lot with three outdoor entertaining areas and a swimming pool and spa that overlook the ocean.
It features a media room, wine cellar with a tasting area, a gourmet kitchen, and an elevator.
Kelly Olauson of Allison James of California Inc. represented the seller. The buyer was self-represented.
Panoramic Views
The 3,210-square-foot estate at 191 Emerald Bay in Laguna Beach, perched at the top of a promontory with a handful of other homes, offers 3,210 square feet of living space on a 7,405-square-foot lot with wrap-around panoramic ocean, coastline and white-water beach views.
The four-bedroom, three-bath home sold on Oct. 22 for $7.7 million, just under its June asking price of $7.9 million.
The ranch-style home is professionally landscaped and offers oasis-like privacy.
Hillary Caston of Coldwell Banker Residential Brokerage represented the seller, and Bruce Miller of Berkshire Hathaway HomeServices worked on behalf of the buyer.
Lot 31 for $7.1M
Lot 31 at 8 Midsummer in Newport Coast sold on Aug. 28 for $7.1 million, meeting its September 2013 asking price.
The 0.58-acre lot has views of the coastline, ocean, Catalina Island, harbor, city lights and Palos Verdes.
Maureen White of Surterre Properties Inc. represented the seller. Rob Smith, also from Surterre, was the buyer’s agent.
