Sydney’s luxury market is spearheading a broader market resurgence, as the city experiences its most significant increase in house prices in more than a year.
For the first time since April 2022, national house prices recorded a month-on-month increase, driven by a 1.4 per cent gain in Sydney.
Leading Australian integrated property development group, Aqualand, has benefitted from the spike in interest in luxury property experiencing over $150M in sales from its three luxury projects, BLUE at Lavender Bay, The REVY in Pyrmont and AURA by Aqualand in North Sydney, since January 2023.
North Sydney, in particular, has seen strong activity, according to Chief Economist Nerida Conisbee.
“The depth of the buyer pool for the top-end of the market is a stand-out, while North Sydney and the broader north shore continues to outperform,” Nerida said.
“We’re now consistently seeing house price growth across Sydney, led by the top quartile of the market.”
Aqualand’s $1-billion AURA project clocked over $100 million since January 2023 —a sign of the city’s unwavering demand for high-end apartments.
“The strong sales at AURA reflect the unique offering we’ve created, and we believe it’s a positive sign for the broader luxury apartment market in Sydney. We’ve experienced month-on-month growth since November 2022 with a spike in sales every month this year,” Aqualand Head of Sales and Marketing, Alex Adams, said.
“We’ve seen a breadth of sales across all apartment types at AURA buoyed by major public domain improvements, transport development and the robust growth potential of North Sydney more broadly.”
A buyer recently purchased two adjoining 4-bedroom sub penthouses for $12,000,000. Other notable prime sales at AURA include two four-bedroom apartments, which sold for $7,115,000 and $7,250,000 respectively, as well as a three-bedroom apartment for $4,975,000.
“The majority of sales have been from buyers from the lower and upper north shore with buyer activity led by owner-occupiers and downsizers.
“AURA’s performance is a key indicator of this robust market, setting the stage for an exceptional year in luxury residential sales.”
Meanwhile, The REVY in Pyrmont has exceeded $20M in sales over the last three months and over $35M has been achieved at BLUE at Lavender Bay, with both projects expected to be selling out soon.
House price growth is expected to continue thanks to fewer building approvals, returning overseas migration and chronic rental shortages, with Sydney unit rents up 18.1 per cent year-on-year. Sydney’s prime price performance trended above the average global annual growth, as reported in the Knight Frank Prime Global Cities Index.
“For those able to transact in this market, there are strong indicators for further growth in Sydney house prices over the medium- to long-term,” Nerida said.
“Sydney’s prices have jumped 4.1 per cent since December. There’s a dire shortage of stock, while persistent rental shortages will only add further pressure.”
The upward trend will continue to create demand for well-located, high-quality apartments, according to Aqualand’s Alex Adams.
“The opportunity to invest in a project which has construction nearing its peak, such as AURA, is extremely attractive to buyers.
“Our buyers also understand what a unique offering AURA is. It really is incomparable to any other projects on the north shore.
“Our hospitality and services business, Etymon Projects, has collaborated with designers to craft an artfully curated selection of venues in AURA’s podium levels, including a providore, bakery, café and wine bar, an all-day diner and a contemporary Japanese restaurant.
“This will serve to enhance and enrich the lives of residents living above a vibrant and refined culinary scene, while also creating a new neighbourhood destination that will be a beacon for visitors and residents in the broader metropolitan area.”
“Residents will also have access to a 5-star luxury hotel-style concierge to cater to their everyday lifestyle and special occasion needs. This service goes well beyond what’s normally available in apartment buildings and has been extremely well received in our BLUE at Lavender Bay project.
“It also appears that AURA is set to be the last North Sydney project to benefit from substantial parking for residents as North Sydney Council plans to enforce parking ratios on future projects. In addition to the onsite parking, residents will have convenient access to the future Victoria Cross Station next door or use the exclusive pool of Tesla electric vehicles we’re providing.
“AURA presents a great window of opportunity to get into the property market as the North Sydney luxury market really heats up,” he added.