Sales there might not be soaring during LA’s luxury snooze, but the Beverly Hills real estate market is ticking along — especially with several new luxury branded condo developments from the likes of Mandarin Oriental, Rosewood and Aman adding movement.
Appraiser Jonathan Miller analyzed a two-year sales window in Los Angeles and Beverly Hills priced above $5 million, and shared his findings with The Post.
“Sales are down in both markets as they are in many high-end US housing markets,” he said. “But when comparing the monthly rate of sales before and after the April 2023 Measure ULA Mansion Tax, Los Angeles sales subjected to the tax were down about 40%, and roughly double the 20% decline over the same period seen in Beverly Hills, which is not subject to the tax. It is possible the absence of the tax gave Beverly Hills a competitive advantage.”
For well-to-do LA home sellers, the tax levies a 4% charge to all property sales more than $5 million and a 5.5% charge to all sales more than $10 million — and knocks hundreds of thousands, if not millions, of dollars off cash pocketed upon sales completion.
It’s not only sellers grimacing at the tax. It also puts off savvy buyers who consider that, come time for them to move on, they will also lose a big chunk of their equity.
Not having the tax is proving to be a golden ticket to the new condo developers busy in Beverly Hills’ Golden Triangle, that hallowed space where three major roads — South Santa Monica Boulevard, Wilshire Boulevard and Cañon Drive — unite around the neighborhood’s lauded Rodeo Drive, which is famously home to Hermès, Chanel and Tiffany.
Alright, picture this: No hotel, but you’ve got all the bells and whistles. We’re talking liveried staff, housekeeping, turn-down service, in-residence spa treatments, private chefs, a 50-foot rooftop pool, plus a rooftop bar and lounge. Need a workout? Hit the fitness center with personal trainers ready to go. And the concierge? They’ll snag those hard-to-get dinner reservations at Funke, chef Evan Funke’s latest hotspot, just a quick 20-minute walk down South Santa Monica Boulevard at North Cañon.
But let’s not forget, Beverly Hills is packed with jaw-dropping single-family homes for sale. Interested in a four-bed estate on Summitridge Drive, just minutes from the iconic Polo Lounge at the Beverly Hills Hotel? It’s on the market for $18.99 million, listed by Tracy Tutor and Stephen Apelian of Douglas Elliman. Or how about a posh nine-bed Empire revival mansion on Beverly Park Way for $48.5 million, and a Pacific-view seven-bed new-build on Laurel Way for $34.95 million, both listed by the local pros at Jones Fridman International.
The condo boom is reshaping Beverly Hills, especially with the massive 17.5-acre One Beverly Hills project. This site will feature the Aman Beverly Hills hotel and about 200 residences in its twin towers, rising on the storied ground next to the Beverly Hilton, a star-studded venue since 1955 and home to the Golden Globe Awards since 1961.
Yo, listen up! Forget the hotel, this place is loaded. We’re talking liveried staff, housekeeping that’ll make your head spin, turn-down service like you’re royalty, in-residence spa treatments, private chefs—the whole nine yards. Got a 50-foot rooftop pool, a killer rooftop bar and lounge, and a fitness center with personal trainers on tap. Need a reservation at Funke? Your concierge will handle it. It’s a 20-minute stroll down South Santa Monica Boulevard to North Cañon. Piece of cake.
But hold up, Beverly Hills isn’t just about condos. We’ve got some insane single-family homes. How about a four-bedroom estate on Summitridge Drive, minutes from the legendary Polo Lounge? $18.99 million. Tracy Tutor and Stephen Apelian at Douglas Elliman have the keys. Or, feeling extra boujee? A nine-bedroom Empire revival mansion on Beverly Park Way for $48.5 million. Or a seven-bedroom new build on Laurel Way with Pacific views for $34.95 million. Jones Fridman International has those listings locked down.
The condo market is exploding, though. One Beverly Hills is a monster—17.5 acres! This isn’t just any project. We’re talking the Aman Beverly Hills hotel and around 200 residences in twin towers. It’s going up right next to the Beverly Hilton—the place where the Golden Globes happen. This is a game-changer.
It’s happening. Right next to the Hilton and Waldorf Astoria—those are still open, by the way. Groundbreaking was this year. Pricing? Size? Shhh…that’s top secret. But let me tell you, sales are off the chain, even though it’s still a construction zone. Heard it straight from the horse’s mouth.
Now, do these whales really care about that mansion tax? Hell yeah, they do. Ernie Carswell from Douglas Elliman in Beverly Hills spilled the tea: “Paying taxes is, like, the American way. But an extra 4 or 5 million on closing costs? That’s a chunk of change, even for these guys.” He’s not wrong. That’s serious money. This isn’t some small potatoes tax. We’re talking millions. They’re feeling it.
Would Beverly Hills ever slap on a mansion tax? “No way,” Carswell declared. “It’d be a total disaster.”
“If they did, luxury values would tank. Buyers would bolt,” he said, pointing out that the ultra-wealthy stay rich by minding their money. “They won’t shell out for it; they hate the idea of a tax when selling. They’ll find a workaround. If buyers see this tax coming, they’ll hesitate big time.”
