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Hamptons.com
April 30, 2015

The Dirty Little Secret Of Hamptons Real Estate

Sponsored Guest Post by Gary R. DePersiaby Sponsored Guest Post by Gary R. DePersia
in Real Estate
Home Real Estate

For years, prices of properties South of the Highway (SOH) have dominated the Hamptons real estate market. But, you might be shocked to find out that a trend is emerging North of the Highway (NOH).

The Times, They Are A-Changin’

Gin Lane, Meadow Lane, Lily Pond Lane, Further Lane… Just some of the fabled byways that would evoke visions of exclusive estates and pricey real estate in the minds of buyers with their real estate brokers salivating at the thought of the sizeable commissions to come. From Southampton to Amagansett, the affluent buyer and their fortunate brokers would jockey for the best properties on the ocean, bays, ponds, farm fields and villages that define the exclusive areas south of 27 (SOH). However Montauk Highway, our Mason-Dixon line, is starting to find itself besieged as less familiar roads with names such as Scuttle Hole, Day Lily, Robertson, Ferry, Deerfield and Hayground gain prominence. Indeed there is a large and growing number of buyers in the know who have discovered the many benefits and attractions of being North of the Highway.

Money, Money, Money

For years, one of the primary reasons to buy north was money. Houses and land were simply less expensive once you crossed “the Highway.” But look at these numbers… $36 million on Ferry Road, $20+ million on Day Lily Lane, $12.5 million on Cedar Street, and $9.75 million on Main Street in Sag Harbor. Those are just some of my significant NOH trades over the last decade. Suddenly “those” people who would buy North of the Highway have turned into “the” people savvy enough to pioneer the changing landscape of the Hamptons. Certainly with the resources to purchase wherever they wanted, the buyers on the streets above opted for special properties in unique locations. And the trend is bound to continue. In North Haven alone, there are four listings over $20 million, while from Southampton to Montauk, the landscape NOH is littered with other pricey properties for sale that are garnering significant attention. Still, the buyer unconcerned with proximity to the beach is finding tremendous opportunities and superlative values at prices far below its SOH counterparts. Hard pressed to find newly constructed, two acres estates with tennis South of the Highway for much less than $15 million, buyers are discovering that from Southampton to Bridgehampton, there are a variety of options available from just over $4 million to under $10 million. Looking for a nice, new house on an acre SOH for under $5 million? Don’t look on Parsonage, Hedges or Daniels Lanes in Sagaponack. Nor should you look on Ocean Road, Lily Pond or Further Lane where the starting prices are bound to be over $7 million. But, merely cross over to the other side, and options abound for new construction well below for what you could find for the same house SOH.

I Love Rock & Roll

And, rockers seem to love North of the Highway too. Mr Margaritaville, The Piano Man, Sir Paul and the Material Girl all call NOH home. Media darlings Matt Lauer, Christie Brinkley, and Alec Baldwin, as well as former Mayors Rudy Giuliani and Michael Bloombrg hang their hats well north of 27. Prominent people from all walks of life have discovered the open fields, the wooded seclusion and the broad bay fronts that define the many different areas NOH. Play golf? With the exception of the Maidstone, every 18-hole golf course IS North of the Highway, from the historic Shinnecock in Southampton to the tony East Hampton Golf course bordering the Springs and all the way to the very good and public Montauk Downs. Many Hamptonites actually plan their purchases so that the only long driving they do is from the tee.

Build It and They Will Come

When he started building on 14 Hills Court and the very northern reaches of Deerfield Road in the mid ’90s, Joe Farrell could not have imagined that only 20 years later he would be offering and selling houses from $8 million to nearly $10 million on the farm fields of Bridgehampton North. But that’s exactly what he is doing. Having just sold the first of five houses he is building on 2 acre lots with tennis within the fabled Two Trees Farm, Farrell has embraced NOH with renewed vigor offering numerous options from $3 million and up, setting the stage for other builders and developers to capitalize on the need for great, new construction at prices that could not be achieved south of 27. Want something with tennis at a price? I represent 5 houses from a variety of builders ready to go right now from just under $5 million to $6.5 million, several bordering open reserve. You’re not finding that on the other side of 27. Call me and let me show you.

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