This article is from the Australian Property Journal archive
STRONG demand for luxury apartments in Sydney spurred $100 million in sales at Aqualand’s Aura tower in February, setting a North Shore record for the highest sales volumes and revenues achieved in a non-launch month – and March is on track to set another benchmark.
Aqualand said March figures at the $1 billion luxury mixed-use tower, at 168 Walker Street in North Sydney, are currently on track to surpass February’s record. Month-on-month increases are expected until April, before sales steady until the project’s construction completion in June when a “substantial spike” in sales is again expected.
The project had seen more than $100 million transacted on market launch day in December, 2021.
The previous non-launch record month was in April 2023, which saw $40 million transacted.
“Considering we hadn’t just launched the project, or even released a new stage, this is by far the most impressive month I’ve seen in my career to date, and as far as we know it also exceeds every other project currently in market in Sydney, in terms of February’s sales volume,” Aqualand’s head of sales and marketing, Alex Adams said.
He believes February’s sales success was due to internal and external market factors.
“We’ve found potential buyers who had previously enquired, but weren’t quite ready to commit, have recently returned to the market. Those waiting to transact closer to the building’s completion have now seen its construction progress and have made the decision to buy,” he said.
He added that Aqualand has completed display apartments on levels six and ten of the building, and the strategy had “definitely” increased conversion.
“Being in the completed building structure, in a brand-new showroom fit out, as opposed to overlooking it from across the street in our previous showroom, really builds confidence in the client’s mind.
“We understand that luxury buyers, whilst they appreciate the off-the-plan offering, are less likely to transact until they can experience the quality, materials and our fanatical attention to detail firsthand.”
Adam said external factors that contributed included the recent stability in interest rates; a lack of competition, with the ongoing shortage of project approvals resulting in fewer options for purchasers of luxury property; and the ongoing transformation of North Sydney with the new Victoria Cross Station close to officially opening; and newer restaurant and retail offerings in the area.
Right-sizing families continue to be the lead clientele, while the stabilising interest rates, and the ability to now see the product at the new display apartments, is also attracting more investors. Downsizers have come back stronger, resulting in more four-bedroom, circa $7 million transactions.
“With the housing market stabilising, and even increasing, they now have confidence selling their home. Also, with the interest rates steadying they can list their homes until they get the price they want.”
According to Knight Frank’s latest The Wealth Report, US$1 million would get you 43 sqm of luxury residential floor space in Sydney in 2023, down from 44 sqm a year earlier.
Luxury sales fell over 2023 by 37% on average in Sydney, largely due to supply shortages.
