Sale of $42M mansion caps Orange County real estate frenzy

Orange County’s luxury real estate frenzy exploded into the spotlight as five mega-sales hauled in an eye-watering $181 million last year — capped by a staggering off-market $42 million mansion deal in a glitzy enclave, according to a report.

The high-end housing boom highlighted the flood of wealth coursing through Southern California’s lavish corridor, where properties selling for at least $2.5 million raked up a record 2,185 sales, The Orange County Register reported.

But the sprawling 13,437-square-foot Newport Coast estate, boasting seven bedrooms and 11 bathrooms, fetched a whopping $42 million, despite being advertised as “basically a shell” by the seller’s agent, Paul Daftarian of Luxe Real Estate.

“They’re not coming to Newport Coast for the first time like they would maybe in Miami or LA or New York,” Daftarian told the outlet, explaining that 90% of the largest sales involved local buyers.

“They know the neighborhoods, and they’re very specific and intentional where they want to live. We’re talking about a lot of the buyers being locals, they have their kids in school. If they have yachts, they’ll keep them at Newport Beach Yacht Club or Balboa Bay Club; it’s 10-minutes away.”

The opulent villa, which sold last May, ranked among the three highest-priced mansions sold last year in Pelican Crest, a swanky guard-gated enclave, the outlet reported.

The other two jaw-dropping pads — a $38 million mansion and a $34 million oceanfront estate — sit in Monarch Bay in Dana Point, and Crystal Cove in Newport Beach.

“The scale of the homes are dramatically different,” Daftarian explained.

“Everything, room-wise, just expands. If you have adult kids who want to stay with you, you have separate zones — outdoor areas, theaters, media rooms, all these things. You get more house, more land, and what a lot of people like, an elevated view.”

The eye-popping sales sparked a 9% jump over 2024, with a modest 2% hike above the 2021 record, Steven Thomas, chief economist of Reports on Housing, told the outlet.

He noted that while the demand for luxury homes has fallen to its lowest level since January 2025, he expects buyers to return in the months ahead.

“It happens every single year,” Thomas said.

Daftarian said the luxury market is about to explode in Dana Point, citing the nearly $600 million harbor remodel that will make it “even hotter.”

“It feels like Orange County 15 to 20 years ago — it’s not as trendy and filled with people … but you’re going to be close to the water more into family neighborhoods,” he said.

“There are great private schools, and the Dana Point Harbor is going to be hot, red-hot. I think people are going to drive from inland and Newport to go there.”

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