Survey Finds Land Prices on Rise in Malibu

Forget the storms, the landslides, the floods and the fires. In Malibu, new home buyers do.

Just like early morning traffic along Pacific Coast Highway and the seasonal offerings from Mother Nature, residents in the famed coastal community can count on property values to rise like the tide. Last year was no exception.

The average price for a single-family home in Malibu was nearly $500,000 in 1987, a 17% jump from the previous year. But that’s just about one-third of the cost of the average beach-front home in Malibu, which rose to nearly $1,350,000 from $1,140,000 in 1986.

The figures are based on an annual study of property transactions in Malibu conducted by real estate broker Dick Lowe, who has been tracking housing sales in the area for 10 years. Lowe compiled statistics from other brokers in Malibu, then checked them against real estate sales recorded in the area by Los Angeles County.

“It’s a reflection of rising property values throughout the Westside,” said Lowe, the principal broker at Malibu Country Realty. “Malibu is becoming a little nicer place to be, especially since people who live here are no longer as dependent on other areas for essential services. You can buy a lot out here if you’re willing to put up with the drive.”

According to Lowe’s research, the biggest jump in Malibu real estate was in sales of condominiums and mobile homes. A total of 174 condominiums and mobile homes were sold in Malibu last year, up from 84 in 1986. The average condominium sold for $186,500. Lowe said the figures reflected a demand for “more moderate housing” in the area.

However, moderate housing could not be found along the coast. The 75 beach homes that were sold in Malibu last year netted an average $101.2 million. Overall, 301 single-family homes were purchased, with an average price of $493,300. The remaining real estate transactions included undeveloped land sales.

“People generally can buy a lot more in Malibu,” Lowe said. “When you compare what you can buy for $500,000 in Santa Monica and $500,000 in Malibu, you find you can get more land in Malibu for the same cost.”

Lowe said that commercial and income property sales also increased, from $13.6 million in 1986 to $21.8 million last year. The relatively low figures reflected the small amount of commercial property in Malibu, Lowe said.

Overall real estate sales jumped to 643 last year from 532 in 1986.

He said the survey did not include real estate sales to government agencies, such as land purchased by the state Department of Parks and Recreation in the Santa Monica Mountains.

The survey does not break down specific areas of the community to determine which is the most or least expensive. Lowe said that there are even “substantial variations” in property on or adjacent to the beach.

Not surprisingly, Lowe said that the prospect “for continued growth and demand for Malibu properties” this year is high.

“Malibu enjoys a tremendous reputation throughout the world,” he said. “It’s always been considered a great place to live.”