Several large plots of land in San Francisco have sold for just $250 (£200) each at auction, but there is a catch: the parcels are completely submerged underwater. The 5,000-square-foot lots near Candlestick Point were auctioned on Tuesday, drawing interest from hopeful investors in a city known for its sky-high property prices.
The underwater parcels were advertised as “an intriguing speculative investment,” with potential uses including “future waterfront positioning, possible boat docking considerations, environmental or recreational applications, or strategic land banking,” according to SFGate. However, owners face legal and environmental hurdles if they wish to fill in the land or build floating homes.
Local resident Linda told KGO-TV: “I think part of it is just the supply and demand. We’re not building enough. And lots of people have lots of money to be able to afford these houses.” But former San Francisco resident Sam Mitchell was sceptical, saying: “That’s a really stupid idea. Sea levels are rising so I don’t know why you’d buy land underwater, but you never know. Someone will figure it out.”
Historian Chris Carlsson noted that while areas of San Francisco were once filled in, that process would be incredibly difficult to get approval for today due to legal and environmental factors. However, Dr. Koen Olthuis, CEO of Waterstudio, an architectural firm specialising in floating homes, suggested that building on the plots might be possible if permitting challenges can be overcome.
Similar underwater land sales have occurred before. In 2021, a realtor bought submerged plots, envisioning future development. In 2023, a man purchased a 10,000-square-foot lot in Alameda for $300,000, unaware it was underwater. Buyers of the latest lots may be gambling on future waterfront values in San Francisco.
