When it comes to Miami real estate, “anything goes” has been the norm for nearly two years — prices rose 23.8% between 2021 and 2022 amid increased demand from high-income immigrants with the new ability to work remotely.
Tech billionaire and PayPal (PYPL) Co-founder Peter Thiel recently told the audience at a conservative conference that Miami “has become like California” despite the fact that he also arrived in the state from Silicon Valley at the height of the pandemic.
A combination of low inventory and mortgage rates has led to bid wars and, in some cases, overconfidence on the part of homeowners looking to sell.
This week, rapper Lil Wayne listed a Miami Beach mansion for $29.5 million, or nearly 75% more than he paid in 2018.
A palace suitable for a rap star
Located at 6480 Allison Road, the 10,600-square-foot home is designed in a contemporary style and has a waterfront over 110 feet. It is located on Alison Island, a 35-acre plot of land in Biscayne Bay land where many celebrities and wealthy residents own homes.
Grammy-collected rapper whose birth name is Dwayne Michael Carter Jr. purchased the house for $16.75 million in 2018. Famous home developer Laurent Harrari built it in 2017 to look elegant and extravagant.
The property has seven bedrooms, an entry hall with 22-foot ceilings, a suede-walled movie theater, wine cellar, floor-to-ceiling windows that open onto a waterfront balcony, pool and cabana.
Douglas Elliman (Doug) Cyril Matz is the agent representing the property. Matz works regularly with celebrity clients who sell homes in Miami.
Lil Wayne is originally from New Orleans but has spent many years in Miami. He rose to fame as a teenager when he graduated from school in 1995, becoming the youngest person to be signed with Cash Money Records.
The popularity of songs like “A Milli” and “Go DJ” have earned the rapper several best-selling albums and several Grammy and MTV Music Awards over the years.
While Miami homes have been in high demand for several years, Lil Wayne’s attempt to earn 75% more than he paid for the home is ambitious in the best understanding of the market.
Overconfidence and the Miami market
In 2017, the rapper sold a house on the nearby island of La Gorce for $10 million despite being listed for $18 million. The final price was also $1.7 million less than what Lil Wayne paid in 2015.
While demand has risen in the past five years, celebrity homes often sell on separate rules from the rest of the market. When the owners are wealthy and in no hurry to sell, many put it on the market at an artificially high price just to see what happens.
Sometimes this is done simply to get media attention for something as the “biggest” or “most expensive” list. A mansion in Los Angeles that developer Niles Nyami once said would sell for $500 million ended up with just $141 million at auction.
To that end, the Miami market may finally show the first signs of abating as stocks rise for the third consecutive month in the summer.
“After more than two years of record-breaking property sales in Miami, the market is turning more in line with historical norms,” Fernando Arencipia Jr., chairman of Miami Realtors, said in a statement.