New lakefront house is rising in Palm Beach, and so is the price of the property, to $43M

Palm Beach real estate saw more than few price reductions over the past few months, as sellers tried to adapt to changing market conditions.

But not every price “adjustment” — that’s the term the pros like to use — heads south, as demonstrated by a recent and notable price increase for an in-the-works house on a lakefront lot at 1265 N. Lake Way.

Agent Chris Leavitt of Douglas Elliman Real Estate last week hiked the price of the property by $5.05 million to $43 million.

With 90 feet on the Intracoastal Waterway, the lot at the intersection of Kenlyn Road is being marketed with town-approved plans for the new contemporary-style house design by Daniel Menard of LaBerge & Menard.

The property on North Lake Way entered the market in late February at $37.95 million. The lot has been owned since June 2022 by a limited liability company named after the address, public records show. That company paid $23 million for the property and razed an outdated house there.

Crews over the past few months have been working on laying the foundation for the house. It’s not unusual in Palm Beach for prices of properties under construction to rise as construction proceeds.

The upwardly mobile price, Leavitt says, reflects the rarity of properties on the lake. “We have seen a rapid absorption of all lakefront real estate, and the values are simply going up,” he said.

That absorption included last week’s closing, recorded Monday at $150 million, of a renovated-and-expanded mansion on private Tarpon Island, which set a Palm Beach price record for lakefront properties without additional oceanfront. Leavitt and agent Suzanne Frisbie of the Corcoran Group held the Tarpon Island listing, and broker Christian Angle of Christian Angle Real Estate was also involved on the seller’s side. Agent Margit Brandt of Premier Estate Properties acted for the buyer.

And this week, a vacant lot of four-fifths of an acre at 940 N. Lake Way sold for a recorded $50 million in a deal that saw Sotheby’s International Realty agents Todd and Frances Peter negotiating opposite Angle.

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Darrell Hofheinz is a USA TODAY Network of Florida journalist who writes about Palm Beach real estate in his weekly “Beyond the Hedges” column. He welcomes tips about real estate news on the island. Email dhofheinz@pbdailynews.com, call 561-820-3831 or tweet @PBDN_Hofheinz.

This article originally appeared on Palm Beach Daily News: As new house rises on Palm Beach lakefront lot, price jumps to $43M