This article is from the Australian Property Journal archive
SYDNEY is one of just five cities to buck the trend of a global slowdown in ultra-luxe home transactions.
Knight Frank’s Global Super-Prime Intelligence Q3 2023 showed that Sydney recorded 21 sale of homes worth US$10 million of more in the September quarter, an increase on the 18 in the same period of 2022. This year’s aggregate value of sales was US$354 million, compared to US$248 million last year.
Sydney stood alongside only Hong Kong, Dubai, Geneva and Miami in seeing an increase in sales year-on-year.
Globally, sales fell 2.4% on a year-on-year basis, with 362 sales across the 12 markets covered in the three months to September compared to 371 in the same period last year.
Dubai led all comers with 89 sales during the quarter; London saw 51, Hong Kong 39, Los Angeles 36 and New York 34.
Over the past 12 months, Dubai tops the list again – with 351 sales, well ahead of second-placed London with 213. New York recorded 196, Los Angeles 181 and Hong Kong 178.
Paris came in last on both measures, with seven sales over the quarter and 29 over the past 12 months.
On a quarter-by-quarter basis, the sales volume and aggregate value for super-prime sales in Sydney fell, however, with the sales volume declining from 34 to 21 and the aggregate value falling from US$686 million to US$354 million.
The sales volume in Q2 2023 was the highest volume of luxury home sales for Sydney since Q4 of 2021, when 56 super-prime sales were recorded.
During Q3, the three-level, four-bedroom home at 12 Bronte Marine Drive, between Bronte and Tamarama Beaches, sold for around $22.5 million – showing an increase of over 27% in just over 15 months.
Knight Frank had of residential research, Michelle Ciesielski said that based on the first three quarters of the year, 2023 was on track to surpass 2022 on an annual basis for the aggregate value and total number of super-prime sales in Sydney.
This year to the end of 2023 has seen 71 super-prime sales, while for 2022 as a whole Sydney had 108 super-prime sales.
“In addition, aggregate values for Sydney super-prime transactions to the end of Q3 this year are already sitting at US$1.3 billion compared to US$1.738 billion.
In 2023, 54% of Sydney’s super-prime sales have been recorded in the eastern suburbs, a significantly lower share than recorded a decade ago when this prime region accounted for 80% of all super-prime sales.
The North Shore, meanwhile, rose from a 13% share 10 years ago to 31% in 2023, whilst the CBD and inner Sydney share has seen only modest growth from 7% to 8%; despite several new luxury apartments built over this time.
Overall, the total number of established super-prime apartment sales across the prime regions of Sydney have increased from 13% in 2013 to 17% in 2023.
Knight Frank head of residential, Erin van Tuil said prestige homes had become a safe haven from global headwinds, with buyer demand strong in Sydney.
“Buyer appetite is strong, but existing super-prime homes continue to be tightly held and supply from new builds will always be limited given the scarcity of well-positioned sites on the harbour,” she said.
More apartment sales in Sydney have been reaching super-prime status over the past few years than seen before, she said.
“In the past, it was mostly a prestige home on a large parcel of land transacting at this price point and a handful of penthouse apartments with stunning water views.
“Going forward, there will be an increasing focus by developers delivering super-prime residential projects from the ground floor to the rooftop.
“Each time our ultra-wealthy population return from an overseas travel, we find a growing number seeking the ease of apartment living with exceptional amenities which allows for privacy, security and lateral living, plus a lock-up-and-leave option for their next trip.”
During the September quarter, Central Element snapped up an amalgamated Bondi site next to the famous beach for $50 million, which it said it would turn into luxury apartments and houses with prices starting from $20 million.
