The luxury property market across Australia remains resilient into Q3 2024, with persistent underlying demand from domestic and international buyers continuing to reset previous price records in tightly held prestige markets.

A range of factors promote the solid performance within the luxury market, notably the lack of quality prestige stock on the market within tightly held locations and strength in the share market more broadly. The expanding demand in the prestige market segment across both houses and penthouse units continues to apply additional pressure on price levels. Location remains a fundamental aspect, with highly desirable and tightly held areas commanding a premium.

Whilst economic challenges, including high levels of inflation and worsening affordability influence the standard residential market, both domestic and international buyers and investors continue to see luxury sales and prices set new levels. Although price points are higher in in the luxury segment, it is where most cash buyers are who are less sensitive to interest rate movements or a slowing domestic economy, but rather are more focused on exchange rates and the share market.

Permanent favourites such as Sydney’s Eastern Suburbs and North Shore, Melbourne’s Toorak and Perth’s Cottesloe continue to entice buyers despite high price points, due to their iconic ‘blue ribbon’ status and international appeal, offering a lifestyle hard to beat.

In the broader property market all national capitals have recorded positive year-to-date price growth, excluding Melbourne. This remains to be significantly led by markets in Perth, Brisbane and Adelaide.

Below we take a closer look at key capitals and luxury locations:

Sydney

Sydney presented strongly once again in the country’s top luxury property sales over the last quarter and year to date, with the prestige market demonstrating large signs of resilience on the back of continuous demand for quality prestige property and limited stock.

‘Alcooringa’ in Sydney’s Bellevue Hill sold for circa $80 million in August. The 7-bedroom home set on 1,560sqm of land has views of the Sydney Harbour Bridge and includes a private and separate self-contained 3-bedroom guest cottage with separate entry and garage.

Also in Bellevue Hill, a five-bedroom, five-bathroom family estate trophy home built circa 1904 on 1,252 sqm, also known as ‘Monkton’ at 53-55 Cranbrook Road, sold for $43.5 million in August. The home sits on a high vantage point which provides for panoramic harbour views that stretch from Clifton Gardens across Manly, Rose Bay and all the way to the ocean at Bondi. The property last sold for $30 million in February 2023, which reflects a significant 45% increase in 18 months.

“Kia Lama” on Bradleys Head Road in Sydney’s Mosman has been sold for circa $40 million, breaking the Mosman house price record. The Federation mansion is set on more than 2,600 square metres it comes with a tennis court, swimming pool, gymnasium and views across Mosman to the city.

In Rose Bay, a five-bedroom, five-bathroom home with four-car garage with harbour views at 1 Rawson Road sold in August for circa $40 million.

Situated in Bellevue Hill, 142 Victoria Road, a six-bedroom, four-bathroom circa 1920’s trophy home sold for $21 million in June, offered to the market for the first time in 26 years.

A luxury five-bedroom cliff front home on a 1,062sqm block at 21 Hunter Street Dover Heights in Sydney’s eastern suburbs at a reported for circa $21 million, setting a record for the suburb.

In Vaucluse, 23 Derby Street, a five-bedroom, five-bathroom, circa 2015 built, three level mansion sold for $15 million. The property features state of the art finishes with a north facing balcony displaying views of Sydney’s Harbour Bridge, Opera House and CBD skyline.

The most recent luxury apartment sales include the sale of the Greenland Centre penthouse, which sits on levels 83 and 84 in the development on the corner of Bathurst & Pitt Streets in the Sydney CBD, which is reported to have sold ‘close to’ the $30 million price guide.  An unfinished Bondi Beach penthouse has sold for circa $22m. The AYA penthouse in the Aqualine at 45 Hall St is 353sqm and has four bedrooms, 4.5 bathrooms and two parking spaces. It will be completed prior to settlement and has views of the water from the balcony, however no views of the beach. 71A/88 Barangaroo Avenue, Barangaroo, situated in Tower 1 of the “One Sydney Harbour” development was sold in August for $17.2 million. The skyhome offers luxury living with 218sqm of floor area, featuring 4-bedrooms and 3-bathrooms with expansive harbour views from every room.

Further up north in Sydney’s Northern Beaches, 83 Pacific Road Palm Beach sold for $26.25 million. The circa 2004 built, six-bedroom, six-bathroom French Provincial style trophy home known as ‘Kerala’ has a land size of 1,765sqm and with a due north aspect boasts views of Palm Beach up to Barrenjoey Lighthouse and across to Pittwater.

Another top sale was a six-bedroom, six-bathroom home, situated on a substantial 1,423sqm land parcel, at 7 Newton Road, Strathfield, within Sydney’s Inner West. This sold in August for $12.25 million, a new suburb record.

The affluent Sydney suburbs of Point Piper, Bondi, Mosman, Bellevue Hill, Darling Point, Woollahra, Double Bay, Palm Beach, Centennial Park, Maroubra, Coogee, Manly, Vaucluse and Rose Bay also continued to feature various other luxury property sales throughout 2024.

Melbourne

Melbourne’s opulent Toorak remains the dominant luxury suburb in 2024 to date, with other luxury suburbs such as Brighton, East Melbourne, South Yarra, Armadale, Kew, Hawthorn East and Portsea in the Mornington Peninsula also having recorded premium sales activity to date.

In Melbourne’s southeast, a c1990’s seven-bedroom beachfront mansion at 5 St Ninians Road, Brighton sold for circa $24 million, setting a new benchmark for the suburb. The three storey property spans 1,800sqm and has unobstructed views of the bay and includes a full-sized tennis court.

2 Hopetoun Road, Toorak, a contemporary five-bedroom, five-bathroom trophy home with a tennis court and swimming pool on 1,475 sqm parcel sold for $21 million in May.

150 Kooyong Road, Toorak, a five-bedroom five-bathroom modern mansion, also sold in May for $14.6 million.

A grand four-bedroom period home, at 203 Domain Road South Yarra, opposite Melbourne’s Royal Botanical Gardens has sold for just over $11 million.

In Melbourne’s east, 15 Lorne Grove, Camberwell a five-bedroom, four-bedroom circa 1870’s heritage listed Victorian mansion sold for $10.2 million in September. Located on an enormous 2,998sqm parcel, the property showcases many period features and includes a 6-car garage, art studio, aviary and full-sized tennis court.

Other noteworthy sales in Toorak include 9 Stradbroke Avenue, which sold in June for $10 million. The residence benefits from a completely unique rooftop terrace with outstanding city views and 360-degree views of surrounding areas, ideally positioned in one of Toorak’s most exclusive tree-lined streets. A six-bedroom house on 617sqm at 32-32A St Georges Road Toorak sold for $8.9 million, some $1.24 million above the reserve.

Brisbane and SEQ

Three properties on Fourth Avenue and Jefferson Lane at Palm Beach on the Gold Coast, which boasts 34 metres of beach frontage, have sold for a total of circa $40 million. It is understood the purchasers plan to redevelop the site into a luxury family compound.

On the Gold Coast, a brand-new family home including five-bedrooms and seven-bathrooms located at 1668 Riverdale Drive Hope Island sold for $12.4 million in July. The home Includes a waterfront swimming pool, wine cellar and parking for 12 cars.

An expansive apartment located on Level 14 at 3555-3559 Main Beach Parade in Main Beach sold for $12.7 million in June.

In Brisbane a luxury three-level home at 7 Prospect Terrace, Hamilton with views of Brisbane city’s skyline and river sold for $12.3 million in September.

A Hedges Avenue beachfront duplex at Mermaid Beach has sold for $11.6 million. The four-bedroom, four-bathroom tri-level property has a 577sqm floor plan and parking for three cars.

4101/140 Alice Street, Brisbane City, a four-bedroom, three-bathroom penthouse, sold in July for $8.03 million. Within the “Abian Residences” the 324sqm apartment provides 270-degree panoramas stretching across the city skyline to the Brisbane River, the Story Bridge, Kangaroo Point Cliffs and the Moreton Bay islands beyond.

On the Sunshine Coast, a four-bedroom, four-bathroom waterfront property at 43 Witta Circle, Noosa Heads sold earlier in May for $30 million. In addition, situated in the most tightly held street in Noosa, 40 Noosa Parade, a renovated, circa 2000’s riverfront home with four-bedrooms and four-bathrooms sold for $20.5 million in August.

Perth

The highest sale this year came from Perth’s Mosman Park, at 177 Wellington Street, a contemporary-style four-bedroom, five-bathroom waterfront home on a large 1,768 sqm land parcel which sold for $25 million in May.

A six-bedroom, four-bathroom circa 1930’s dwelling at 33 View Street, Peppermint Grove sold in August for $14.5 million. The property was extensively renovated in 2013 and sits on an expansive 2,476 sqm parcel across three lots with Freshwater Bay and Perth CBD views.

Also, a five-bedroom, five-bathroom 2019-built, ultra-modern multi storey property situated in the beachside suburb City Beach, located 8km west of Perth CBD, at 28 Challenger Parade sold for $11.12 million in August. The property sits on 893 sqm of land and features a 6-car garage and beachfront ocean views.

A four-bedroom, five-bathroom circa 2015 multi-storey home at 16 Grant Street Cottesloe, one of Perth’s most affluent suburbs located 15 minutes from the CBD sold in July for $10.5 million. It has a land size of 451sqm and ocean views. Also in Cottesloe, a renovated 1910 Federation five-bedroom, five-bathroom home at 115 Grant Street on 1,442sqm parcel sold for $8.55 million in July.

The most notable apartment sale recently was a riverfront three-bedroom, three-bathroom single level apartment, offering breathtaking views at 3/11 Brown Street in East Perth which sold in August for $5.65 million.

Adelaide

The Adelaide property market continues to be one of the fastest growing markets nationally. The most recent multi-million-dollar sale to change hands was a four-bedroom, two-bathroom fully renovated character residence home at 11 Durdin Road in Hawthorn which sold for $3,087,500 in July.

A four-bedroom, two-bathroom fully renovated sandstone cottage at 145 Stanley Street in North Adelaide sold in June for $3 million. Constructed in circa 1900 and architecturally redesigned and renovated (c2021), the property is timeless blend of period and modern architectural style.

Another noteworthy sale includes a four-bedroom, three-bathroom home at 47 Commercial Road in Hyde Park which sold in May for $2.95 million.

Summary

The well-documented shortage of genuine quality luxury properties, which are customarily tightly held, continues to underpin values in the asset class. Prestige agents are reporting continued strength with discerning buyers remaining active for the right property.

Important information

The information contained in this article is gathered from multiple sources believed to be reliable as at 27^th September 2024 and is intended to be of a general nature only. It has been prepared without taking into account any person’s objectives, financial situation or needs. NAB recommends that you seek independent legal, property, financial and taxation advice before acting on any information in this article.

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