April 2015 – East Coast Prestige Residential

23 April, 2015 / Vanessa Rader

The prestige residential market has rebounded in the past two years resulting in a large uptick in the number of transactions. Across Sydney the increase in foreign investment activity has resulted in a sizeable increase in high ticket property changing hands with the volumes increasing particularly in the over $20 million price range.

During 2014 there were 19 sales of homes over $15 million, a record high for Sydney; of these transactions 11 were over $20 million representing a new high for these quality residences. Of these sales 8 were reported as being by overseas buyers including the $39 million Villa del Mare in Point Piper which has not been granted FIRB approval and is currently back on the market. The volume of transactions in 2014 totalled just short of $433 million, despite this high 2013 achieved the highest value sale in Sydney being $52 million Altona property also in Point Piper. During 2014, 6 of the sales were for properties (all over $20 million) in Point Piper, with Bellevue Hill and Vaucluse representing 4 transactions each with an additional 3 transactions on the north side of Sydney in Mosman.

Prestige property in other states does not match the value achieved in Sydney given the status of the city as a global city and characteristics such as Sydney Harbour. Melbourne however has achieved a high volume of transactions over $5 million over the past couple of years. 2014 resulted in 74 transactions totalling $647 million, slightly down on the 2013 result which achieved $755 million in 68 sales. Looking at the higher value assets over $10 million this represents a high 12 number of transactions being $170 million, only one transaction was recorded over $20 million being the $23.3 million sale at 14 St Georges Road, Toorak in late 2014 to a local buyer. Half of these larger sales were for properties within Toorak with Brighton, Hawthorn, Albert Park, Armadale and Kew also representing in this higher price bracket.

Across Queensland there was a sizeable increase in the volume of transactions during 2014, more than doubling volumes to $230 million and now representing 34 transactions over $5 million. Of these transactions only 15 were over $7 million, 10 being in the $7–$8 million range and were spread across South East Queensland with a mixture of waterfront property in the Gold Coast together with Brisbane riverfront suburbs of Hawthorne, Hamilton and Norman Park. There was two properties recorded over $10 million during 2014, Windermere in Sutherland Avenue, Ascot was reported as selling for $10.2 million to a domestic buyer; while the reported $14 million property at 50 Aaron Street Hawthorne was sold to Gina Reinhart, this the largest transaction in Brisbane over the last five years.

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