Lakeside living doesn’t come much posher than at the C$10 million (US$8.1 million) penthouse at One Water Street, British Columbia, Canada.

Setting a new benchmark for luxury real estate in the Okanagan region, the landmark property is priced at nearly three times the highest valued condominium reported sold on multiple listing service in the history of the Okanagan region. Don Kottick, president and CEO of Sotheby’s International Realty Canada, says this reflects the evolution of the region’s luxury real estate market as it continues to experience accelerated sales and price growth.

“This is a notable and timely listing for the B.C. real estate market,” he said. “There has been a surge in demand for luxury properties outside major metropolitan areas since the start of the pandemic, launching cities like Kelowna onto the national and global map.”

While many luxury real estate buyers are seeking primary and holiday homes that will offer more space and better access to the outdoors, many also desire the convenience, security and high-end amenities of condominium living, he added. “The One Water Street penthouse offering is uniquely positioned to appeal to this demand.”

Located in the arts and cultural district of downtown Kelowna, One Water Street’s two towers, at 36 and 29-storeys, rises elegantly above the waters of Lake Okanaga. The soon-to-be-complete penthouse offers 4,500 square feet of customisable interior space designed by Toronto-based Gluckstein Design, including a master wing and the opportunity for at least three bedrooms and three-and-a-half bathrooms. An additional 2,600 square feet of exterior living space features a chef’s kitchen and panoramic lake views.

With nearby restaurants, shops and entertainment within walking distance, residents have exclusive access to The Bench, a 1.3-acre fourth-floor oasis with resort-style amenities including two outdoor swimming pools, a hot tub, outdoor lounging with fire pit enclaves, health club with yoga/Pilates studio, entertainment/kitchen area and pickleball court.

Aspen-based Riley Warwick, of Douglas Elliman Real Estate, was one who was inundated, with demand increasing almost 120 per cent year-on-year so far.

In the three months from 26 November 2020 until 26 March 2021, Warwick says, Aspen saw 114 sales with US$794 million in sales volume. Seven of those sales were US$20 million or over; 25 were US$10 million or over; and 51 were US$5 million and over.

“Compare that with the same time frame for the 2019-2020 winter season where we saw 53 sales with US$321 million in volume. one sale $20m and over, 22 sales US$10 million and over and 27 sales US$5 million and over,” he said.

While some buyers are strictly looking for holiday homes, even more of Warwick’s clients are looking to move to Aspen permanently.

“The pandemic has caused people to place a high importance on quality of life,” he said. “When you can work efficiently from home, enjoy a great quality of life and still have access to an airport five minutes from downtown, planting roots in Aspen makes sense.”

Those whose budget runs to US$39.5 million could be in the market for Tom Cruise’s 320-acre Colorado mountain ranch. The Hollywood superstar reportedly helped to design the 11,512 sq ft home, taking full advantage of the views. Living space includes the 10,000 sq ft, four-bedroom main house and a three-bedroom guest house. In addition to a large eat-in kitchen, living room and dining room that will seat a crowd, there is a gym, recreation room and library.

Eric Lavey, of Sotheby’s International Realty, says Cruise’s property has the rarity factor. “Scarcity always drives value, and in this case, the ability to duplicate this assemblage of contiguous parcels in a location as desirable as Telluride is extremely rare in 2021,” he said.

Even at that asking price, Cruise’s Telluride ranch is not alone. Co-listing agent Dan Dockray of LIV Sotheby’s International Realty, Telluride, Colorado, says the highest-priced ranch costs US$45 million, adding “we have a number of properties above US$20 million”.

Over the past 12 months sales of homes in all categories more than doubled, with the highest growth in the ultra-high US$10 million-plus plus segment. “We’ve had four or five sales above US$10 million, whereas normally we’d see only one a year,” Dockray said.

He believes the pandemic has accelerated, rather than sparked, UHNWIs purchase of mountain homes.

“Most saw themselves in a mountain home one day,” he said. “Now since the lockdown and telecommuting, they’re thinking about the lifestyle. If they can afford it, they will (buy).” They’re also more likely to also hang onto their primary residence in New York or Chicago. Dockray thinks securing prime property is “a bit of a hedge against inflation for these folks”.

But some prefer sun and sand to the snow. Knight Frank data highlights Palm Beach, Florida, as a key super-prime hotspot recording 20 sales above US$20 million in 2020, up from 10 in 2019.

Jason Mansfield, an associate in Knight Frank’s international sales team, says this is not surprising given the spacious beachfront homes and landscaped gardens available in Palm Beach. Samantha Curry at Douglas Elliman, Knight Frank’s partners in the US, adds that safety and convenience are also pull factors. “Palm Beach is one of the safest enclaves in the world,” she said. “The crime rate is extremely low, and people love the fact that it is very convenient to fly in and out. The Palm Beach International airport and private aviation FBO is a five-minute drive to Palm Beach island. Plus, we have world-class shopping and restaurants right at your doorstep.”

A new report from technology-powered real estate brokerage Redfin shows luxury home sales in West Palm Beach, Florida, surged 116 per cent year-on-year in the fourth quarter of 2020. By comparison, sales of affordable homes in West Palm Beach grew just 10 per cent.

“Lately, most house-hunters in the area have been in the market for primary homes – a shift from before the pandemic, when a majority of buyers were looking for holiday homes,” said Delray Valle, Redfin’s West Palm Beach market manager.

“Buyers are coming in from expensive cities – especially New York – and beating locals in bidding wars by offering all cash.”

So where are prices soaring fastest?

Knight Frank’s Prime International Residential Index, which tracks the movement of luxury residential prices in 100 cities and second home markets globally, shows the following price gains for the 12-months to the end of December 2020:

1. Auckland, New Zealand + 17.5 per cent

2. Shenzhen, China + 13.3 per cent

3. Seoul, South Korea + 11.7 per cent

4. Manila, Philippines + 10.2 per cent

5. Moscow, Russia + 9.9 per cent

6. San Diego, US + 9.1 per cent

7. Aspen, US +9.0 per cent

8. St Petersburg, Russia +8.7 per cent

9. Shanghai, China + 8.5 per cent

10. Vancouver, Canada + 8.1 per cent