After more than three years on the market, a Beverly Hills mansion initially listed for $100 million has sold at less than half that price.
The 20,000-square-foot (1,900-square-meter) house — dubbed “Opus” in a flashy marketing campaign — sold this week for $48.4 million, including furniture, according to a Multiple Listings Service report. It’s the latest luxury Los Angeles property to go for a steep discount in the midst of a pandemic that has left the area partially locked down for months, deterred foreign buyers and kept out-of-state investors away.
The market is particularly tough for so-called spec houses, built by developers with lofty price expectations that have often proved unrealistic.
“It was never worth that to begin with,” Jonathan Miller, president of appraiser Miller Samuel, said of Opus’s original $100 million price tag. “High-end properties are moving, but they’re not moving for prices that are disconnected from the market.”
Spec homes with sky-high asking prices are outliers even within the luxury market, where the bid-ask price spread has narrowed, properties receive multiple offers, time on the market has plunged and other measures indicate a shortage of supply, according to Miller.