Luxury homes in Los Angeles County posted their largest-ever gains in appreciation last year, according to an annual survey by Fist Republic Bank.

The average price of a luxury homes in Los Angeles those worth more than $1 million rose nearly 28 percent to a record $1.97 million, the bank reported today.

The region’s rapid price increase outperformed high-end markets in San Diego and San Francisco where appreciation was 16.4 percent and 13.7 percent, respectively.

The record gains in 2004 follow five years of already robust growth. Luxury prices rose 14.9 percent in 2003, 3.6 percent in 2002 and 9.4 percent in 2001. Since December 2000, the average luxury home in Los Angeles County has increased more than $600,000 in value.

The prices represent a cross-section of luxury homes in Arcadia, Beverly Hills, Calabasas, La Canada Flintridge, Encino, Los Angeles, Malibu, Marina del Rey, North Hollywood, Pacific Palisades, Pasadena, Playa del Rey, Santa Monica, Studio City and the West Los Angeles enclaves of Bel Air, Brentwood and Westwood.