Why the $50 million penthouse is a good idea.
There is a trend lately of designing and marketing high-profile listings for penthouse homes ranging from $50M USD to $100 USD. It’s happening in larger cities like New York, Los Angeles, San Francisco and Miami. So who’s going to buy that multi-million dollar penthouse? It’s a good question. But perhaps the better question is: Did they expect to find someone in the first place?
They seldom sell at this price point. But this isn’t a disappointment; it was all part of the planned sales and marketing strategy. Promoting the lavish penthouse offers great PR value when it’s first announced, creating intrigue and elevating the entire building. There’s a halo effect. It enhances the luxury, attracting ultra-high net worth buyers to take a look even if the expansive floor plate is out of reach.
Within the plan, the ‘grand’ penthouse is marketed long before concrete is even poured. This gives the developer a chance to be nimble and reconfigure the floor plate as needed. Many times a buyer will ask for a smaller, custom designed floor plan. What was once a single unit can be turned into multiple residences that are still extremely attractive, a higher price per square foot and appropriate to a wider audience.
This strategy allows us to use our expertise and work with developers to create multiple scenarios for penthouse offerings that are flexible in both size and price.
By leveraging visual and interactive technology, the buyer can envision the possibilities of a custom space created just for them. This means more options for people of means to still have their home in the sky.