HAMPTONS, MANHATTAN, AND SOUTH FLORIDA 2021 YOY $10M+ MARKET REPORT

HAMPTONS MANHATTAN SOUTH FLORIDA

2021 YEAR OVER YEAR

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Jule Pond, Hamptons,

EXECUTIVE SUMMARY

HAMPTONS | MANHATTAN | SOUTH FLORIDA

Each year when we research and prepare our yearly Market Report, we do our best to anticipate the story our data tells before it officially reveals itself. Our quarterly reports do a fine job of guiding us, and though we could certainly surmise, at least anecdotally, that this past quarter, and the entire year of 2021, was top-performing, it wasn’t until we compiled this Report that we could see the full picture on just how much the ultraluxury real estate market outperformed the year prior, and how much Bespoke is leading that endeavor.

In October, we broke a Hamptons’ history record, facilitating the transaction of Jule Pond, a 42-acre oceanfront property, whose last asking price was $145 million; Bespoke represented both the buyer and the seller. In total last year, we had a hand in transacting over $1.85 billion worth of $10 million+ properties across the Hamptons, South Florida, and New York City.

These latter two markets are a notable development this year. While we continue to dominate the market at our original headquarters in the Hamptons, having facilitated over 35% of all transacted sales volume, we also opened two new offices in New York City and Miami in 2021. Bringing our ultra-tailored approach to these

ultra-luxury markets for the first time means new buyer and seller opportunities in an ever-expanding market.

It’s perfect timing too; when we finished 2020, there was some anticipation that the ultra-luxury real estate boom we experienced could be boiled down to a direct effect of Covid, and that with a return to regular economic and social life, the market would return to pre-pandemic levels, too. And yet, it hasn’t. All three $10 million+ markets have grown consistently since the start of 2021, the success of one not taking from another. New York City’s growth in 2021 was inevitable from the year prior; still, what’s more, as devastating as its fall felt in 2020, 2021 has completely made the 2020 losses back up, already surpassing 2019 levels in trade quantity and volume. South Florida’s market is greater than northeasterners flocking to sunshine; buyers have returned to cities, yet are still purchasing in South Florida.

There’s much to look forward to in this year ahead. Join us in this insightful dive into the 2021 $10 million+ market.

HOPE YOU ENJOY.

Cody Vichinsky President, Bespoke Companies

THE HAMPTONS $10M+ MARKET

Total $10M+ Trades in 2021 YTD

Q1

Q2

Q3

15 TRADES

40 TRADES

32 TRADES

40 TRADES Q4

The number of 2021 trades rose 22% from 2020 levels, with 23 more trades transacted. $10M

The data shown below includes the 9 locations surveyed within the Hamptons $10M+ real estate market for 2021 year to date. *WEST

2

3

2

0

4

2

8

5

1 TRADES IN Q1

3 TRADES IN Q2

2 TRADES IN Q3

3 TRADES IN Q4

2

8

5

11

0

2

2

0

1 TRADES IN Q1

5 TRADES IN Q2

5 TRADES IN Q3

9 TRADES IN Q4

2

4

5

2

SAGAPONACK

2

6

2 TRADES IN Q3

1

*Includes

AMAGANSETT/MONTAUK

1 TRADES IN Q1

7 TRADES IN Q2

1 TRADES IN Q3

4 TRADES IN Q4

$2.6B+

2021 sales volume rose 20% from 2020 levels, with $421 million more worth of trades transacted.

$10M + TOTAL HAMPTONS SALES BY PRICE POINT

The data shown illustrates the total sales quantity and volume within theultra-luxury real estate market surveyed within the Hamptons for 2021 year to date.

$10M

$152M

$362M

$355M

$30M - $40M

$0 Q1 VOLUME $109M Q2 VOLUME

$31M Q3 VOLUME

$20M - $30M

$90M Q1

$40M + $0 Q1 VOLUME

$300M Q2 VOLUME $145M Q3 VOLUME

$180M Q4 VOLUME 9

Jule Pond, Hamptons, NY

SOLD BY BESPOKE: $145,000,000

Oceanfront | 42 Acres | 20,000 SF+/-

#1 Hamptons Single Property Sale

Co-Exclusive

In line with our predictions in last year’s 2020 Market Report, the Hamptons’ 2021 market has not fallen back to pre-pandemic levels, but rather demand has continued to grow.

Looking at the market by region, most notable is Watermill’s tremendous growth. On top of more than doubling the number of properties transacted, from 6 in 2020 to 13 in 2021, Water Mill’s transaction volume grew by $206 million, most notoriously led by the sale of 90 Jule Pond, whose LP of $145 mililion made it the most expensive single property sale ever recorded in the

Hamptons. Other record-breaking sales include Burnt Point, the most expensive waterfront trade sold for $47 million.

An interesting trend of 2021 is the increased popularity of the Eastern towns of Amagansett and Montauk. Typically, East Hampton or Southampton drives the market, however 2021 witnessed a 400% and 166% sales volume increase in Amagansett and Montauk, respectively.

Amagansett had a 400% increase in sales volume between 2020 and 2021.

“The success of the South Florida and New York markets have not drawn buyers’ attention away from the Hamptons; the success of one market has not hampered the others.”

Joe De Sane | Managing Director, Bespoke Real Estate

Until 2021, 2020 had been the highest in over a decade in both trade and volume, until 2021 surpassed it, with 23 more trades. Though skeptics feared the disproportionate increase in transaction volume was a direct response to the pandemic, the market has continued to grow even after most buyers have returned to relative normalcy in their lives; people are back in cities.

“The success of the South Florida and New York markets have not drawn buyers’ attention away from the Hamptons; the success of one market has not hampered the others, a remarkable development given the niche market size of $10 million+ homeowners,” says Joe De Sane, Managing Director of Bespoke Real Estate. It suggests two things: first, that individuals with capital to do so found this past year, with historically low-interest rates, the perfect time to buy, perhaps in multiple places within a two-year span, according to the data. Second, that there is a new pool of buyers in the $10 million+ market that will continue to keep demand on the rise. Still, the question remains whether quality inventory will arise to meet the demand.

THE MANHATTAN $10M+ MARKET

71 Laight Street, 6C, Tribeca, NY

SOLD BY BESPOKE: $14,495,000

4,200 SF+/- | 4 Beds | 4 Full and 1 Half Baths Bespoke Exclusive.

34 TRADES

72 TRADES

99 TRADES

74 TRADES

The number of 2021 trades rose 66% from 2020 levels, with 111 more trades transacted.

The data shown below includes the 6 of 7 total locations surveyed within the Manhattan $10M+ real estate market for 2021 year to date.

DOWNTOWN

4

5 TRADES IN Q2

6

6

DOWNTOWN

12

29

42

29

MIDTOWN EAST

2

7

5

5

MIDTOWN WEST

3 TRADES IN Q1

7 TRADES IN Q2

9 TRADES IN Q3

7 TRADES IN Q4

UPPER EAST SIDE

10 TRADES IN Q1

12 TRADES IN Q2

21 TRADES IN Q3

16 TRADES IN Q4 59

UPPER WEST SIDE

3 TRADES IN Q1

12 TRADES IN Q2

16 TRADES IN Q3

11 TRADES IN Q4

$5B+

2021 sales volume rose 59% from 2020 levels, with $1.7 billion more worth of trades transacted.

$10M + TOTAL MANHATTAN SALES BY PRICE POINT

The data shown illustrates the total sales quantity and volume within the ultra-luxury real estate market surveyed within Manhattan for 2021 year to date.

$10M

$315M

$30M - $40M

$37M Q1

$20M

$194M

$149M Q4

It’s not surprising that the New York City $10 million+ luxury market is making a comeback. Between 2020 and 2021, the historic rush out of the city in 2020 led to a market that favored buyers, resulting in immense demand very quickly by the end of 2021. All of a sudden, New York City homes rapidly transformed from being a buyer’s deal haven to a seller’s paradise.

Like in other markets, this massive peak in trades exists because the pool of homes in the $10 million+ category itself got larger; homes that had been on the market in the $7 to $10 million range have just summitted over the $10 million benchmark, due to such high buyer demand. The surge of sales in New York in the $10-$20 million range points to this.

37 of all 42 transactions over $10 million in New York City fell in the $10-$20 million price category in 2021

Still, record-breaking trades in 2021 can also be attributed to a buildup of quality supply in 2020, where many sellers of legacy properties across all price ranges felt uncomfortable listing in a downturned market.

137 Franklin Street, Tribeca, NY

SOLD BY BESPOKE: $9,999,999

3 Levels + Rooftop | 4,000 SF+/-

4 Beds | 4 Full & 3 Half Baths

Bespoke Exclusive

2021’s $10 million+ New York City sales have already surpassed 2019 levels, by 18 more trades.

“When the market showed not only a renewed but vigorous interest, many sellers were eager to list again, resulting in historically high trade volume growth,” says Kristin Lukic, Portfolio Manager of Bespoke Real Estate Manhattan. Despite the speed at which New York City trades fell between 2019 and 2020, from 261 sales to 168 (-35%), and despite how catastrophic it seemed at the time, $10 million+ New York City sales have already surpassed 2019 levels, which was then considered a flourishing market. There were 279 properties sold in 2021, 18 more than in 2019

One particularly fascinating albeit unexpected trend: there was a 200% increase in Upper West Side transactions, particularly in the $10-$20 million range (most of the region’s inventory falls in this range). “This is likely because of the increased listings reaching over the $10 million mark,” says Lukic. Historically, the Upper East Side commands the lion’s share of the city’s ultra-luxury market and continued through both 2020 and 2021 to host 4 of the top 5 trades of the year, with a last asking price of $79 million for a neoclassical townhouse on 69th street.

We expect to see the strength of the $20million+ market growth this year, with an increase of apex new development residences finding buyers.

384

89

146

71

The number of 2021 trades rose 118% from 2020 levels, with 208 more trades.

The data shown illustrates the total sales quantity and volume within the ultraluxury real estate market surveyed within South Florida for 2021 year to date.

$7.8B+

2021 sales volume rose 156% from 2020 levels, with $4.7 billion more worth of trades transacted.

$10M + TOTAL SOUTH FLORIDA SALES BY PRICE POINT

The data shown illustrates the total sales quantity and volume within the ultra-luxury real estate market surveyed within South Florida or 2021 year to date.

$10M

$906M

$30M - $40M

$38M Q1 VOLUME

$397M Q2 VOLUME

$341M Q3 VOLUME

$241M Q4 VOLUME

$20M

$419M

$375M Q2 VOLUME

$383M Q3 VOLUME

$202M Q4

2021 Q2 had 146 trades, nearing the entirety 2020 sales quantity of 176 in just one quarter.

South Florida’s ultra-luxury market has experienced tremendous growth over the last few years, the most rapid of any state in terms of sales volume and sales quantity. Between 2020 and 2021, there was a 118% increase in the number of $10M+ properties sold in the region.

The reason for the major increase in both quantity and volume is revealed by the quarterly data. Quarterly migratory patterns indicate that traditionally, buyers tend to transact in South Florida homes between April and June, to prepare for a summer

outside the city. Yet the spring of 2020 delayed these purchases, with only 30 and 31 sales made in the first two quarters of 2020, respectively, resulting in a stronger Q3 and Q4 Florida market.

The surge continued into the first half of 2021, particularly in Q2, which saw 146 trades in just one quarter. For context, the entire year of 2020 transacted 176 properties. In the second half of 2021, the surge relaxed to 81 and 87 trades in Q3 and Q4, respectively.

3,474

With customary migration patterns and four consecutive successful quarters, the sonic and steady growth of South Florida is projected to last well into 2022.

Harlan Goldberg | President, Bespoke Real Estate South Florida

Rather than falling back into the average trade quantity before the pandemic— around 30 per quarter—we believe that 80 or so transactions per quarter will be the new normal for the region for the foreseeable future. Without major tax regulation changes or artificial interest rate hikes in 2021, a return to pre-pandemic trade levels would have happened already if it were going to, yet the demand for $10 million+ properties

in the region continues to be very strong. “With customary migration patterns and four consecutive successful quarters, the sonic and steady growth of South Florida is projected to last well into 2022,” says

Harlan Goldberg, President of Bespoke Real Estate South Florida.

One result of increased demand in the market could also be the cause of increased quantity, in the sense that many

Eighty

homes in the $7 million to $10 million range have increased in price, thereby becoming part of our analysis and the reason for what appears to be increased trading quantity.

Another result of the demand is keenly revealed by the Palm Beach market.

Notorious listings of $50 million and above, many of which were in Palm Beach, had a 645% increase in sales. “Many of the properties had been on the market for

some time, and 2021’s demand allowed them to finally transact,” says Goldberg. Additionally, longtime homeowners, like those in Palm Beach, where the median age is 70 years, have been able to capitalize on the fortified seller’s market, adding to the number of $10million+ transactions.

With active demand from perhaps more patient buyers, we expect to see quality inventory meet expedient absorption as it becomes available in 2022.

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