TIGHT SQUEEZE. The sale of several landmark properties means fewer training and stabling opportunities for Palm Beach polo players. [Photo credit: David Lominska]
Fewer transactions involving much larger parcels lead to a 10 percent price per acre reduction in West Palm Beach County.
The twelfth edition of Atlantic Western Realty Corporation’s biennial Wellington Land Report features an incisive look at the epicenter of South Florida’s equestrian real estate market.
Since 2015, more than 100 equestrian properties have changed hands in the Wellington market. While the overall number of sales fell by 30 percent, the total acreage jumped by 30 percent to a record 1,033 acres. Sales volume also hit a new high: $480 million.
Although the banner tally shows market vitality, it also demonstrates a noticeable volume discount. The average price per acre sold from 2015 to 2017 was $465,000, a 10 percent drop from the record high of $515,000.
According to Brad Scherer at Atlantic Western, “We currently see a larger supply of listing inventory, slowing transactional volume, and increasing buyer discretion.”
To Scherer’s point, there were 120 major Wellington equestrian properties representing 1,380 acres on the market when his report went to press. The total asking price of this inventory exceeded $870 million, which works out to approximately $632,400 per acre. Those MLS listings suggest a 25 percent bid-ask spread premium over recent sales. This is almost twice the bid-ask spread premium reported in 2015.
Go to www.atlantic-western.com to get the Wellington Land Report as well as for market updates.