A US$200m penthouse and the new economics of luxury homes

Investment manager Cain is selling Aman-branded homes at its One Beverly Hills development for an average US$7,000 per sq ft, in line with some of the most expensive homes in London.

For The Residence Report 2026/27, published this week, we asked CEO Jonathan Goldstein to discuss the scheme and its pricing. He invoked the economics of luxury goods, where the right brand can untether price from more conventional measures of value.

“You don’t negotiate with Chanel or Prada over the price of a handbag,” he said. “We’re seeing something similar in the residential world now, where brands place their hallmark on pieces of real estate. People know what they’re getting, and they’re prepared to pay for it.”

For Goldstein, branded residences are a natural extension of a broader shift in luxury consumerism, where the wealthy increasingly seek experiences over more traditional luxury goods. People expect more from their homes as a result, he says, which is drawing buyers to homes from recognised luxury brands: "People want comfort, security, privacy and highly serviced amenities... they know what they’re buying, and the brands mirror their expectations.”

Unique fundamentals

One Beverly Hills encapsulates many of our report’s biggest themes, from the remarkable growth of wealth in the US – which retains the largest concentration of operational stock – to the allure of brands among a globally mobile demographic. And while longevity clinics, hyperbaric oxygen therapy, cryotherapy and sound-healing studios might be all the rage, setting new benchmarks still requires a property with unique fundamentals: architecture, location and views (more on this next week).

Indeed, One Beverly Hills is unique in its scale. Its two Aman-branded towers – the company’s first branded residences on the West Coast – include approximately 150 apartments and will be the tallest buildings in Beverly Hills, with phased completions beginning in 2027 and running through to 2028. The 17.5-acre site is more akin to a campus than the boutique developments and solitary towers typical of the district.

We asked dozens of investors which markets they favour, and where their next projects might appear. Goldstein said he's likely to be guided by the same themes that underpin One Beverly Hills: the creation and migration of wealth; sustained demand for cities; and changing tastes in real estate as demand for experiences continues to grow. The destinations poised to benefit, he says, are already visible in the migration data.

“If you look at the net migration of people around the world, the top three areas are the UAE, the US and Italy,” he added. “They are the places that have welcomed the new wealth.”

The interview begins on page 32. 

Tokyo rising

Global luxury housing markets recorded a modest improvement in the second quarter of 2026. Across our 47-city basket in our Prime Global Cities Index, prime residential prices rose by 2.6% over the 12 months to Q2 2026, up from 2.0% in the previous quarter, but below the 3.0% recorded a year earlier.

Tokyo took the lead at the top of the index, with prime prices rising 50.7% over the 12 months to Q2 2026. The city also recorded the strongest quarterly result, at 12.6%, reversing the 8.6% decline reported in Q1. The figures underline the scale of Tokyo’s recent repricing, although the magnitude of the quarterly movements points to continued volatility.

Asian markets continued to occupy much of the upper end of the annual ranking. Tokyo was followed by Manila, where prices rose 14.6%, while Singapore placed fourth with growth of 9.5%. Seoul, Mumbai and Bengaluru also featured among the leading markets, recording annual increases of 6.4%, 6.2% and 4.5%, respectively.

However, second-quarter performance was more varied. Manila and Seoul recorded quarterly declines of 2.4% and 2.2%, while Singapore and Mumbai rose by 2.0% and 1.7%. Outside Asia, Nairobi delivered the second-strongest quarterly result in the index, at 5.0%, followed by Vienna at 4.6% and Stockholm at 4.0%. The results suggest that short-term momentum is becoming more geographically dispersed, even as Asian cities retain their prominence in the annual ranking.

Lenders reprice

The Bank of England voted for the sixth time yesterday to maintain the base rate at 3.75%, though it warned that rate hikes are coming if the conflict in the Middle East continues. Markets expect as many as four rate rises by the middle of next year. 

Mortgage lenders have repriced during the past fortnight to account for the new outlook. Santander, HSBC, Nationwide, Lloyds, Halifax, Barclays and TSB raised rates this week by as much as 0.3 percentage points. 

There remains a possibility that this round of repricing is as bad as it gets in the near term, though lenders are operating on wafer-thin margins and are therefore particularly vulnerable to global events. The Bank of England said it would keep £120bn of gilts on its books, prompting yields to fall by the most since May. Rising government borrowing costs have been among the factors pushing mortgage rates higher. Oil prices have also dipped from recent highs, though brent crude remains 70% higher year-to-date.

In other news...

Barratt Cuts Home Sales Outlook as Iran War Weighs on Demand (Bloomberg), US Mortgage Rates Rise for Fourth Straight Week, Approaching 7% (Bloomberg), Landlords quit lettings market at fastest rate since 2016 (Times), and finally, UK rents rise at fastest pace this year (Reuters).