High net-worth investors remain bullish when it comes Santa Monica real estate, according to a just-released poll from Morgan Stanley.
More than one-third of respondents said they expect real estate in Santa Monica and the other L.A. County beach cities to “take off” in 2014. The South Bay real estate market—which among others includes Redondo Beach, Hermosa Beach and Manhattan Beach—was also deemed particularly attractive to high-end investors.
Investors are bullish on Santa Monica largely because of the city’s growing tech sector. In fact, there has been such a proliferation of tech companies that Santa Monica is part of what’s now known as “Silicon Beach.” According to Zillow.com, the median sales price of a home in Santa Monica in December 2013 was $863,700. That was up 22% from the previous year and equated to $715 per square foot—which was more than double that of the Los Angeles metro area average.
An official for Morgan Stanley spoke with the Santa Monica Daily Press about the findings.
“Local investors continue to be enamored with our rapidly growing tech sector, and they seem to see a great deal of promise in real estate, especially in the beach cities where the local tech sector is flourishing,” said Jeff Adams, Morgan Stanley Wealth Management’s Southern California regional director.