While most housing markets in the rest of the country continue to struggle with anemic demand and foreclosures—and sales at many other luxury ski resorts are still sluggish—Aspen prices have been climbing.
The average home price in this mountain town has increased over the past four years, to $6 million in 2010 from $5.4 million in 2006, according to multiple-listings data. The median price for single-family homes is now the highest in the country at $4.6 million, says San Francisco-based Altos Research, surpassing the Hamptons, Beverly Hills and Palm Beach.
Sales of luxury Aspen estates have done well, thanks in part to foreign buyers
Of the 25 real-estate transactions recorded by Pitkin County for the week of Jan. 19 to 25, five were buyers from abroad, including three Australians and people from Turkey and Hong Kong.
So who’s buying?
Russian businessman, Alexander Zanadvorov paid $13M for his estate
Last month, a home in the Maroon Creek neighborhood with an indoor heated swimming pool, basketball court and outdoor hot tub overlooking a waterfall sold for $13 million. The buyer was Russian Alexander Zanadvorov, the 40-year-old owner of Sedmoi Kontinent, a chain of supermarkets.
Turkish executive owns a condo
“Aspen is like a small Manhattan,” says Altunc Kumova, a financial services executive from Istabul, Turkey, who bought a fractional condo at The Little Nell in January. “You can find almost all upscale brands for shopping and restaurants are excellent. Apres-ski in Aspen is very glamorous.”
In 2008 Russian billionaire Roman Abramovich paid $36 million for a 14,300-square-foot house on 200 acres. A couple living in London snapped up a $10.5 million ranch in July; a $16 million home with 40 acres and a theater, gym with sauna and steam, private guest apartment, elevator and six-car garage, was purchased by a family from New Zealand.
Chuck Frias, an Aspen developer and broker who has a newly built $24 million home on the market, says the weak dollar has drawn interest in the home from house-hunters in Canada, Australia and Italy; he sold a $7 million house to a Chilean family in December.
In the past few days Aspen agents have reported showing homes to potential buyers from as wide a range as Russia, Brazil, the Dominican Republic, Italy and Australia.
Ski Brasil, a Brazilian ski-tour operator with a winter presence in Aspen, runs three ads a week for 16 weeks in Portuguese in the local Aspen paper now. Eduardo Gaz, the company’s director of operations, estimates some 20,000 Brazilians ski in Aspen every season, some of whom own homes (many of whom won’t talk for tax reasons). Joshua & Co. real estate has taken out ads in Russian offering to show visitors around.
“I have a long list of Australian friends who are coming to visit,” says Anna-Lisa Klettenberg, an artist and investor from Sydney who bought a condo at the luxury Gant Hotel. Ms. Klettenberg had been skiing in Aspen for over a decade; she decided in March to look to buy, put an offer on the condo that day, closed in May and was there for the month of July. She still owns her home in Sydney and has a summer place on Australia’s Gold Coast in Queensland, but she plans to spend four months a year in Aspen now. She’s on the national council of the Aspen Music Festival, a role that gets her invited to lots of parties and events.
Hedge fund manager John Paulson paid $24.5M for an estate
Last year, hedge-fund titan John Paulson paid $24.5 million for a 13,000-square-foot estate with a sandy beach, surrounding ponds, a 35-foot-wall of disappearing glass, views of the four ski mountains and a media room with leather seats.
Chris Reyes of Chicago-based Reyes Holdings paid $31.5 million for his estate
Chris Reyes of Chicago-based food and beer distributor Reyes Holdings paid $31.5 million for a 15,000-square-foot stone mansion with a gym, panoramic views, a caretaker’s apartment and an eight-stall horse stable.
Paul Edgerley, a managing director of Bain Capital, bought an estate for $19.8M
According to public records, Paul Edgerley, a managing director of Bain Capital, bought an estate in the exclusive community of Starwood a couple of weeks ago. The estate sold for $19.8 million after less than three months on the market, says listing agent Brian Hazen.
Interested in a 90-acre estate listed for $48.5M?
A 90-acre Aspen estate just went on the market for $48.5 million, listed by Joshua Saslove of Joshua & Co. Known as Jigsaw Ranch, it includes two main houses, a guest house and a log cabin gatehouse. The 21,000-square-foot main house took nearly 15 years to complete and was designed to look like a perched village. The second main house is 11,000 square feet and has an entrance reached from a walking bridge across a creek.
Why Aspen has held up so well
Analysts point to numerous reasons why Aspen has held up so well. A small market where only 13% of land is able to be developed because of zoning laws and the mountainous landscape, it never suffered the over-development now plaguing other areas. Aspen’s distance from a major city and spotty air service help to keep away day tourists.
It’s also emerged as a place where young professionals can find jobs, particularly at small private finance firms and at nonprofit organizations. The Aspen Young Professionals Association, started in 2003 with nine members, now has 257 active members on its event email list. Obermeyer Asset Management, an independent investment advisory started by the son of sporting-goods magnate Klaus Obermeyer, is one of the older local firms; since its start in 1998 it has gone from managing $50 million to $775 million in investments and from two staffers to nine staff members in two offices.
Burberry and Gucci are here, as are eateries like Rustique, with its locally sourced bistro food, and Montagna with its extensive wine selection. There are also music, film and food festivals, and the Aspen Art Museum is planning a new, 30,000-square-foot building designed by architect Shigeru Ban. The Aspen Institute, which brings in world leaders as speakers for its annual Ideas Festival, has also helped put the town on the international map.
Francesca and Sal Amery, a British international banker, have lived for the past 20 years in the Middle East, New Zealand, England, Tokyo, Hong Kong and Singapore and have owned homes in Malaysia, Singapore and England. They considered buying a home at a ski resort in Europe or New Zealand, but nothing measured up to Aspen when it came to meeting their checklist of wants: comfortable year-round living, a good education system, an airport, access to great medical facilities and an educated and diverse population.
The adage remains true: location, location, location is so important when it comes to real estate savvy.
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Source: http://online.wsj.com/article/SB10001424052748703775704576162553297928260.html
