James Jannard Cuts Beverly Hills Mansion Price by 4.4% Amid Luxury Market Correction

James Jannard, the billionaire founder of Oakley, has relisted his Beverly Hills megamansion for $65 million, a $3 million reduction from its initial asking price of $68 million in June 2024. Despite the price drop, Jannard stands to make a significant profit since he purchased the property for $19.9 million in 2009 [1]. The 18,000-square-foot estate, spread across nearly two acres, is being marketed by Aaron Kirman, a Christie’s International Real Estate agent with experience in multi-million-dollar listings [1]. The price cut reflects broader trends in the luxury housing market, where sellers are increasingly adjusting their expectations amid shifting buyer sentiment and economic pressures [1].

Jannard’s situation is not unique. In May 2025, Jennifer Lopez and Ben Affleck reduced the asking price of their Beverly Hills property by $8 million. Similarly, billionaire media mogul Rupert Murdoch slashed the price of his Manhattan penthouse by nearly 40% to $38.5 million [1]. These adjustments highlight a market correction in which luxury buyers are prioritizing long-term value and security over vanity pricing. Anthony Luna, CEO of real-estate advisory firm Coastline Equity, noted that buyers now have more leverage, with listings staying on the market longer and price cuts becoming more common [1].

“Square footage and celebrity status don’t justify inflated pricing anymore,” Luna explained. “Buyers want smart design, upgraded systems, and long-term value” [1]. This shift signals a growing preference for practicality and investment potential over extravagant features in high-end real estate [1].

Compounding the challenges for sellers is the Los Angeles mansion tax, which imposes an additional 4% on property sales of at least $5 million and 5.5% on properties over $10 million. The tax is typically paid by the seller and adds a significant financial burden to transactions [1]. Emma Hernan, a real estate agent and star of Selling Sunset, described the tax as a “nightmare” for sellers and agents alike [1]. She noted that for a $5 million home, the tax could add an unexpected $200,000 to the seller’s expenses [1].

These developments reflect a broader market dynamic where buyers are becoming more selective and cost-conscious. Luna emphasized that the luxury market is no longer about vanity but about value and security. “Buyers are doing the math, and they’re calling the bluff,” he said [1]. As the market continues to evolve, sellers must adapt to a landscape where pricing strategies are increasingly scrutinized and adjusted to meet buyer expectations [1].

Source: [1] James Jannard mansion luxury housing market sellers problem (https://fortune.com/2025/08/07/james-jannard-mansion-luxury-housing-market-sellers-problem/)