Penthouses continue to drive Sydney’s prestige residential market as mid-tier luxury slows, with developers increasingly using them as hero products to anchor their projects. While sales agents report apartments in the AUD$3 to AUD$5 million range have shown signs of cooling amid interest rate uncertainty and tighter affordability, penthouses continue to buck the trend.
Sydney’s high-end real estate market is continuing its significant surge in 2025 following a 2024 that saw luxury property sales totalling more than US$1.5 billion.
The city recorded 100 super-prime residential sales valued at over US$10 million in 2024, totalling US$1.586 billion, according to Knight Frank’s Global Super-Prime Intelligence reporti, while Q1 2025 has seen a further 17 sales in this price range.
The average 2024 transaction was US$15.9 million, cementing Sydney’s position among the world’s top luxury property markets.
Agents and developers are reporting that scarcity, design excellence and buyer profile are all contributing to the segment’s resilience.
A striking example came earlier this year with the AUD$20 million sale of the penthouse at Ballamac in Coogee, when a previously unaware buyer walked past the hoarding, wandered into the display suite and purchased the luxury home on the spot. It is emblematic of a market where trophy assets can sell almost instantly, often to cash buyers who are less sensitive to economic conditions.
Unsurprisingly, savvy developers are increasingly focusing on penthouse offerings to meet this demand.
Eterno Property Group (Eterno) has now launched sales of Halcyon in Bondi, a boutique coastal development of eight residences at 1–7 Andrews Avenue and 26 Glen Street, with focus firmly on the penthouse.
Designed by MHNDU with interiors by Richards Stanisich, the building is crowned by a 300sqm full-floor penthouse with panoramic views from Bondi to Bronte, three bedrooms, three bathrooms and expansive indoor–outdoor living.
Eterno is anticipating the Halcyon penthouse sale will spearhead sales on the project with the property expected to attract an exclusive audience of Eastern Suburbs high net worth buyers and fetch a price of around AUD$26M.
The penthouse sits above two ground-level garden residences with private pools, horizon residences with sweeping coastal views and a wellness-focused amenity offering including a lap pool, plunge pool, sauna and cabana set within landscaped gardens.
The penthouse-first strategy has already proven successful for Eterno. At its recently topped-out Ode project in Double Bay, the project’s three penthouses were sold as part of the first six transactions, with the largest setting a suburb record at AUD$25 million. Just three apartments now remain in the building.
Meanwhile, Aqualand has recently launched the two penthouses at AURA by Aqualand in North Sydney, priced at AUD$21 million and AUD$15 million. Each is offered with a new Bentley Continental GT valued at around AUD$500,000.
Even the Inner West is seeing penthouse activity, with Coronation Property introducing the first ever penthouses in Ashbury at its Ashbury Terraces development.
Brad Caldwell-Eyles, Managing Director of 1st City Real Estate Group, said the performance of the penthouse market reflects a clear shift in buyer behaviour at the top end of the market.
“Penthouses are in a category of their own. They’re scarce, they’re exceptional, and they appeal to a buyer who’s typically paying cash and looking for a one-of-a-kind property,” he said.
“That combination of limited supply, exceptional amenity and an audience that’s less impacted by interest rate uncertainty means penthouses continue to outperform the broader market. It’s why developers such as Eterno are putting so much emphasis on their penthouse offerings like at Halcyon – they’re often the first to sell and set the tone for an entire project.”
Halcyon’s design reflects its Bondi–Tamarama setting with house-like proportions, abundant light and seamless indoor–outdoor flow. This design philosophy, which defines the entire project, finds its most powerful expression in the penthouse.
MHNDU Principal Liam Hancock explained that while penthouse living is often associated with separation from the ground plane, at Halcyon it’s deliberately tied back to the landscape.
“Although the penthouse sits on the top floor, it isn’t isolated from the natural environment below,” he said.
“The scale of the site allowed us to give every resident – including those at the very top – direct connection to expansive green space and a sense of sanctuary. Whether it’s the lush gardens that wrap the building or the coastal breezes moving through the architecture, there’s a real feeling of being grounded in nature.”
By shaping the building into two pavilion-like forms and creating generous landscaped zones, the design ensures that even at its highest level, the penthouse remains connected to the communal gardens, natural light and ocean air that define Halcyon’s identity.
This philosophy of connection is carried through the interiors, where the penthouse is designed as a deeply personal retreat.
Kirsten Stanisich of Richards Stanisich explained that every material, texture and proportion within the penthouse was chosen to reflect the surrounding landscape and create a sense of understated grandeur.
“The penthouse is the ultimate expression of Halcyon’s quiet luxury,” she said. “The curved stone mosaic in the ensuite, hand-worked timber and tumbled natural stone echo the sculpted cliffs and weathered textures of Bondi and Tamarama, creating a tactile, elegant environment that feels timeless rather than trend-driven.”
“With panoramic ocean views wrapping around three sides, abundant northern light, and interiors defined by natural materiality, the penthouse embodies the calm sophistication of its coastal setting.”
For Eterno’s Managing Director, Sydney Ma, this residence is the pinnacle of the project and a defining moment for the brand.
“Halcyon delivers the best of both worlds – an elevated private retreat and a lifestyle intrinsically connected to Bondi and Tamarama,” Ma said.
“Space is at a premium here, so to offer a penthouse of this scale with extensive private amenity is unprecedented. Halcyon isn’t just another Bondi address – it will be the new pinnacle of coastal living, crowned by an exceptional penthouse residence.”
Together, the architecture, interior design and amenity combine to create a penthouse that doesn’t just sit above Bondi, but is woven into its fabric – a rare fusion of elevated coastal luxury and grounded natural connection.
i Knight Frank. 2025. Global Super Prime Intelligence.
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