A Surge in Pacific Palisades Land Listings
A wave of new land listings in Pacific Palisades has hit the market, attracting significant attention from buyers. According to data from Amalfi Estates owner Anthony Marguleas, 19 parcels have been listed, with many appearing on the MLS within the last two weeks. In just the past 24 hours, seven new properties were added to the market, highlighting a rapid increase in inventory.
Marguleas noted that most of these listings are receiving dozens of inquiries, indicating strong buyer confidence in the area’s rebuilding efforts following recent wildfires. Over the next few years, he estimates that between 500 to 750 parcels will be listed for sale, representing roughly 10% of the land affected by the fires.
Impact of Wildfires on Land Values
During a recent community meeting, Marguleas provided an update on current market conditions, stating that Pacific Palisades land values are expected to decrease by 25% to 30% compared to pre-fire levels. Despite this projection, buyer interest remains high, as evidenced by recent sales activity.
One notable sale closed this week for $1.2 million. The nearly 10,000-square-foot parcel at 17126 Avenida De La Herradura sold in approximately a month for 19% above its listing price. KW Advisors’ Richard Schulman represented the seller, while Keller Williams Realty Westside’s Meran Solamany and Niloofar Farzadmehr represented the buyer.
Another property at 14800 Mc Kendree Avenue, measuring about 7,700 square feet, went under contract last week with an asking price of $2.9 million after just seven days on the market. This property is listed by Simon Beardmore of Sotheby’s International Realty.
Price Ranges and Market Trends
Current listings in Pacific Palisades vary widely in price, with available land ranging from $749,000 for a 3.1-acre lot at 1309 Palisades Drive to just under $4 million for an 8,200-square-foot parcel at 611 Ocampo Drive. This range reflects differing lot sizes, locations, and potential development opportunities within the community.
The Role of Measure ULA in Land Sales
One factor influencing the market is Los Angeles’ Measure ULA, a transfer tax affecting property sales above $5.15 million. Properties at this threshold are subject to a 4% tax, while those exceeding $10.3 million face a 5.5% tax. This controversial tax, introduced in April 2023 to fund affordable housing and homelessness initiatives, has led to concerns within the real estate industry. Some high-profile agents, including Ben Belack and Jason Oppenheim, have petitioned state and city officials to exempt properties impacted by the recent fires from this tax for a five-year period. However, there has been no official response from city leaders regarding potential exemptions.
Conclusion: What This Means for Buyers and Investors
With hundreds of land parcels expected to enter the market in the coming years, Pacific Palisades presents unique opportunities for buyers and investors. While property values may see a temporary dip due to wildfire impacts, the area remains a highly desirable location. Buyers looking to invest in land should stay informed about pricing trends, tax implications, and rebuilding initiatives that could shape the future of Pacific Palisades real estate.
For more updates on real estate trends and listings, visit Boutique Realty’s website or contact us for expert guidance on navigating the market.