Prestige property splurge reveals what $10m will buy
16 Jan 2020
Appetite for Sydney’s top-end homes surged during the last three months with around 31 properties worth more than $10 million a piece – almost half of the year’s total – exchanging hands.
Prestige property valuation and advisory firm Pontons analysed the resale market for ultra-premium homes in Sydney and found that 69 properties were sold over 2019, with maximum price achieved at $40 million.
Ultra-prestige homes such as this house at 18 St Thomas Street, Bronte have held their resale values during 2019.
Andrew Tunbridge, valuer and director at Pontons said that while the total sales volume for the year was 43 per cent lower compared to the 120 transactions achieved in 2018, selling prices had remained stable.
“The fact that 45 per cent of the sales of the annual tally above $10 million occurred in the fourth quarter of the year, is a particularly strong finish,” he said.
The solid showing also coincided with the rapid growth in the broader market where Sydney dwelling values jumped by 6.2 per cent during the past three months according to data provider CoreLogic.
Mr Tunbridge said that most of the high-end properties resold over the past 12 months had held their values.
For example, the five-bedroom, five-bathroom home Gres De La Mer at 18 St Thomas Street, Bronte, which sold in May 2018 for $11 million resold in May 2019 for $11.55 million.
The home was bought by Cygnet Capital boss Darien Jagger and his wife Katie Jagger from ASX general manager Grant Lovett and his wife Cheryl O’Neill.
The waterfront property at 42 Wolseley Road, Point Piper, was sold for $22.5 million in December 2018 and resold in November 2019 for $22 million.
The highest-selling home in 2019 was the property at 50 Wolseley Road, Point Piper, which was sold for $40 million.
Michelle Ciesielski, head of residential research at Knight Frank Australia who also analysed the sector, said that although the number of sales had slowed, there were still pockets of the market where record property prices continued to be achieved.
Mr Tunbridge said he expected sales volumes to rise strongly this year and for prices to surpass the level achieved during 2019.
“Considering the exceptionally strong finish in the $10 million-plus sales in the fourth quarter of 2019, coupled with the quality of prestige homes on the market for sale, I anticipate a sharp rebound this year,” he said.
“I expect to see healthy demand from local buyers, expatriates and high net worth individuals from Hong Kong, China and the UK.”
The Knight Frank Prime Global Forecast 2020 predicted Sydney’s premium market to grow by 4 per cent in 2020, while Melbourne is set to rise by 3 per cent – trumping Vancouver, New York and Dubai – amid growing confidence bolstered by lower interest rates and limited supply pipeline.