Luxury home and condo sales were so strong last year that one leading Bermuda realtor said there's now pent-up demand from wealthy overseas buyers for multi-million-dollar properties in desirable areas, including Tucker's Town.Not only did the number of sales of high-end homes rise, but there was also a significant increase in the average selling price of both luxury houses and condos compared to 2010, according to Rego Sotheby's International Realty.“The 2011 luxury market saw robust activity with an increase in the number of homes sold by 30 percent over 2010 for homes with an ARV of $153,000 and higher,” said Buddy Rego, President and CEO of Rego Sotheby's. “Average sale prices in the luxury residential market also increased by 15 percent over last year, from $6.4 million to $7.5 million.”In addition, Mr Rego said sales to international buyers increased by 40 percent from the previous year representing 56 percent of the total luxury home buyers this year.The numbers were in contrast to the non-luxury local market, which continued to suffer in 2011 with the two-bed condo market remaining saturated and rents dropping further (see our story tomorrow).Mr. Rego said the uptick in luxury sales was a sign of confidence in the Bermuda market by international buyers, who are drawn for tax purposes, as well as the Island's quality of life, sophisticated business community, location and proximity to the US and UK.While the number of luxury properties sold was small - nine houses in 2011 vs seven in 2010 Mr. Rego said the increase in sales in that market showed a clear, positive trend. He said there's demand for homes by international buyers who want to become Bermuda residents as well as base their businesses here.“There is a queue of people looking to buy nice properties here - properties that are in need of repair, dated or overpriced are not moving,” he said.Penny MacIntyre, executive vice-president of Rego Sotheby's, added: “Our queue of international buyers are looking for homes with at least four to six bedrooms, primarily in Tucker's Town, followed by Fairylands, Point Shares and Paget. Tucker's Town particularly appeals to international residents interested in convenient amenities from golf, to direct beach access and a hotel resort lifestyle.”Mr Rego said the demand showed a need for proposed changes to land policy to open up the buying pool for luxury homes in what is a “tightly controlled real estate market”.He said the majority of the luxury home sales were to Americans followed by British and Canadians.The luxury condo market also saw an increase in the number of sales and average sale price.There were 69 luxury condominiums sold to overseas and Bermuda buyers in 2011 versus 64 in 2010.“International buyers represented 15 percent of the 2011 condominium purchases with ARV values over $32,400 again with the majority of purchases by US citizens, followed by British,” said Ms MacIntyre. “Average sale price of this luxury condominium tier increased 12 percent from $969,000 to $1.1 million.”She noted that 60 percent of international buyers bought their Bermuda properties as vacation homes in 2011.“The remaining 40 percent regard Bermuda as their primary residence and place of employment marking a seven percent increase over 2010 in the number of international buyers making Bermuda their primary residence,” Ms MacIntyre said.There are currently 17 homes available to international buyers ranging from $3.5 million to $32 million.There are approximately 25 condominium units available for whole ownership to international buyers.Mr Rego said changes to current land policy could boost the luxury market even more. He said he was hopeful that the policy would be changed this year to allow Bermudians to sell their homes to non-Bermudians, allow permanent resident certificate holders to purchase properties as Bermudians and drop the requirement for non-Bermudian spouses to have special licences to acquire properties.“We are not at the stage where people have stopped looking at us,” Mr Rego said. ”Bermuda is still seen as one of the premier places in the world to do business and live.”At least $35 million worth of luxury homes has sold in Bermuda in just the first six months of the year.Coldwell Banker Bermuda Realty has also said it's noted increased activity in the luxury market.Back in August the realtor said at least $35 million worth of luxury homes had sold in Bermuda in the first six months of 2011; and $40 million more worth of high-end real estate was under contract.Coldwell Banker Bermuda Realty's survey noted more multi-million-dollar properties had sold in Bermuda in the first half of 2011 than all of 2010, and 2009.The sales represent millions of dollars worth of annual revenue to the Government, given the now 25 percent cost of a licence for a foreigner to acquire a home in Bermuda, plus the one to three percent stamp duty, legal fees and land taxes due