Several large plots of land in San Francisco have been sold for just $250 (£200) each, but the catch is that they are completely underwater. The 5,000-square-foot parcels near Candlestick Point were auctioned on Tuesday, drawing hopeful investors despite being submerged.
The lots are located in a bay area, meaning owners face significant legal and environmental hurdles if they wish to develop them. Options such as filling in the land or building floating homes would require permits and could clash with rising sea levels, experts warned.
Bay Area resident Linda told local media: '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.' However, others were more sceptical. Former San Francisco resident Sam Mitchell said: 'That’s a really stupid idea. Sea levels are rising so I don’t know why you’d buy land underwater.'
The 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. Historian Chris Carlsson noted that while parts of San Francisco were once filled in, getting approval for such projects today would be extremely difficult.
Despite the challenges, Dr Koen Olthuis, CEO of Waterstudio, a firm specialising in floating homes, suggested that building on the land might be possible: 'Most of these locations, as long as they’re not on open sea, but in this kind of Bay area, or in flood zones, or in rivers, or in canals, lakes, that’s absolutely possible.' Buyers may be gambling on future waterfront values, following similar purchases in 2021 and 2023.
