Advertising a product as “limited edition” or as having “limited quantity” is one of the oldest marketing strategies in the business. The idea that there are only a few available accomplishes two goals; it gives the buyer a feeling of exclusivity while also giving them a sense of urgency. So consumers are attracted to the product that only a select few will own and rush to commit as to not miss their opportunity to join this elite group. You can see this marketing strategy in almost every industry, and according to a recent Forbes article, it’s taking the luxury real estate market by storm.
Take for example the upcoming construction of the luxury condominium building, One Thousand Museum, on Biscayne Boulevard in Miami. The 60 story residence could easily accommodate over 700 studios and one-bedroom apartments, but the designers have gone a different route. Instead of paying for the $300 million tower with several units, they will construct just 83 luxury homes. The smallest units will be approximately 4,600 square feet, taking up about half of a floor with a starting price of around $4.9 million. Full-floor units will starts around $15 million with the 11,000 square foot duplex penthouse selling for about $30 million. All units will have private balconies, floor-to-ceiling windows, 10-to-20-foot-high ceilings, and five-star amenities which include indoor and outdoor pools, concierge services, and even a rooftop helicopter pad. “We are a very limited-edition building,” says Lois Birdman, one of the building’s developers. “We are not a small building, but we are small in terms of the number of units.” They are limited edition homes, and everyone wants one.
The limited edition trend in luxury real estate is being seen all over the world, and with good reason. According to Birdman, units over 3,000 square feet are bringing a premium of almost double the price per square foot of the average-sized unit (about 1,100 square feet). Similar projects in the Miami area include The Residences at the Miami Beach Edition, which recently sold the most expensive condo in Miami’s history at $34 million, and One Ocean, a South Beach boutique property. The trend can also be seen in New York City, where space is really at a premium. But with wealthy buyers on the hunt for big digs in a private setting (both tough to accomplish in packed urban areas), developers are making it happen, as seen in projects like 18 Gramercy Park. Nearly 70% of the residences have already been sold for an average of $4,000 per square foot. High-end “limited edition” buildings can also be found in Paris, Switzerland, London, and other top global destinations. Luxury real estate doesn’t just refer to sprawling, gated estates anymore. This latest trend now allows for private, luxurious residences with breathtaking views to be found in, and above, some of the world’s most exciting cities.