Luxury Buyers Are Tearing Down to Build Up in Palm Beach
A recent article by The Coastal Star has brought attention to a trend we are seeing more and more in Palm Beach: high-net-worth buyers are purchasing oceanfront estates, often for tens of millions of dollars, with the sole intention of tearing them down and building brand-new custom homes.
In Manalapan, for example, WeatherTech founder David MacNeil purchased two adjacent properties for a combined $94 million. One was an existing 14,000-square-foot home, and the other had just been rebuilt. Both are now slated to be demolished so he can create one custom estate on nearly four acres of land from the ocean to the Intracoastal.
While this may seem extreme to some, it is becoming common in the luxury real estate market.
We have seen a sharp increase in buyers prioritizing land, location, and privacy over existing structures. The idea is simple: the land is what holds long-term value. Older homes, even if they are grand in scale, often do not meet the standards of today’s luxury lifestyle.
Clients are looking for things like higher ceilings, open layouts, expansive outdoor entertaining areas, and modern amenities that legacy homes cannot always accommodate. In many cases, it is more cost effective and appealing to start fresh.
This trend is not isolated to Manalapan. Similar situations have occurred in Gulf Stream, Sloan’s Curve, and throughout Palm Beach, where multimillion-dollar homes are leveled to make way for custom waterfront estates. What was once considered shocking is now expected at this level of the market.
Several factors are fueling this trend:
-
Limited availability of ocean-to-Intracoastal parcels
-
Aging home inventory across coastal Palm Beach
-
A migration of wealth into South Florida post-pandemic
-
A strong appetite for ultra-personalized estates built from scratch
This behavior reflects a new mindset among ultra-luxury buyers. The purchase is not just about owning real estate, it is about creating a tailored living experience that checks every box, from privacy to design to long-term value.
At The Scott Gordon Group, we specialize in identifying high-potential teardown opportunities, assisting clients through every stage from acquisition to new construction. Whether you are looking to acquire a buildable waterfront parcel or preparing to market a legacy home, we are here to help you navigate this evolving landscape.
The Next Move Is Yours
Ready to take the next step? Contact Scott & Mindy Gordon today to discuss how we can help you find your perfect home.
Scott Gordon
Email: [email protected]
Phone: (561) 346-4141
Mindy Gordon
Email: [email protected]
Phone: (561) 302-3133
