$1.5BN OF THE WORLD’S BEST HOMES

How do we define an Ultra Prime Property
Do we rely on price per square foot, absolute
value, city, country or type of property Is a
property 'Ultra Prime' only when it is located
in a 'safe-haven' city such as London, New York or Geneva
Is the Ultra Prime market expanding geographically
or will these properties only ever exist in certain
areas of the world
The subjective nature of the question and the everchanging
realities of the property market within an
increasingly globalised economy mean that property
market commentators and participants may find it difficult
to agree on a true definition of 'Ultra Prime'.
At Ultra Primus, we intend to become the focal point
for the only segment of the property market which we
believe to be truly global – the very top. Whilst a small
number of deals each year are transacted at $100m+,
these transactions are often newsworthy (such as the recent
$100.5m sale of a residence in Manhattan's One57
development and the 2014 sale of Connecticut's $120m
Copper Beach Farm). The majority of the transactions
in this niche consist of homes sold between $10m and
$50m. In London, arguably the epicentre of the global
property market, there are currently no homes for sale on
the open market at $100m+ although clearly off-market
transactions do also take place.
TOP OF THE MARKET
Whilst acknowledging that geographical
differences exist, we therefore describe
the $10m+ market as 'Ultra Prime' and
believe this, broadly speaking, is an accurate
reflection of the top of the global property
market. Naturally this figure may exclude some smaller
properties in 'prime' areas and include some vast properties
in less popular areas however as a starting point
for this niche, it ensures that all world-class properties
are included. We do also believe this category is better
defined by describing the people who purchase the
homes at this end of the market.
ULTRA HIGH NET WORTH
The world's population of approximately
200,000 Ultra High Net Worth (UHNW) individuals
– described by Wealth-X as those individuals
with net assets of at least $30m – are
the principal participants at the top of the market.
The global mobility of the UHNW population, their
appetite for owning property around the world and
the multitude of choices which lie before them mean
that their purchases are primarily driven by want rather
than need. This means that whilst transactions at
the top of the market can be completed very quickly
indeed, the opposite is just as likely. Buyers with ample
liquidity and numerous options – including not
buying at all – are rightly inclined to be tough negotiators
whilst sellers are often disposing of a property
out of choice rather than necessity and thus can also
afford to be patient waiting for the right offer. In contrast
to the mainstream property market where most
buyers are looking for a principal home, buyers in the
Ultra Prime category purchase for a number of additional
reasons including: as a 'safe-haven' asset, to
enhance a lifestyle (e.g. a vineyard or ski chalet), for
business reasons (a base in a global city where the
principal might be based for large parts of the year),
for family members, as a hedge against inflation or
as a residence which generates an income (such as
a working ranch).
Whilst every $10m+ property may not be Ultra
Prime, the vendors and agents of any $10m+ property
should take a global view on marketing in order
to maximise the speed of the sale and the sale price
achieved. Through the Ultra Primus website, magazine
and exceptional marketing events, we celebrate
the best homes in the world and help UHNW buyers,
sellers, agents and advisors identify and market these
residences
ultraprimus.com
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