The demand for luxury apartments in the Sydney CBD has never been stronger in a trend that is driving increased sales in the $10 million-plus bracket.
Despite extended lockdowns impacting the CBD over the past two years, Colliers National Director of Project Marketing Residential, Blake Schulze said he had witnessed the strongest demand ever experienced over the past six months, with this high level expected to continue into 2022.
“It’s a trend that strengthened at a time when a lot of attention was being focussed away from the CBD towards trophy homes and regional activity,” Mr Schulze said. “It really affirms how parts of the Sydney CBD have successfully evolved into a high quality and desirable world-class apartment market.”
The demand for high-end apartments has been clearly demonstrated across a range of new projects including 111 Castlereagh Street, One Sydney Harbour, Crown Residences Barangaroo and the Sirius Building.
Stand out transactions include all of the available penthouses (sold off-the-plan) at 111 Castlereagh Street, as well as the penthouse collection consisting of The Jones, The MacKellar and The Cambridge Residences, which have sold for a combined total of $66 million.
“Sales are running ahead of any familiar or traditional trends, with demand concentrated out of Sydney’s East and North Shore, and not necessarily driven by down-sizers.” Mr Schulze added. “This pattern also further distinguishes Sydney’s CBD apartment market as distinct from trends we see in Melbourne and Brisbane.”
“Current high-end buyers often own multiple homes and are those who have ‘fallen in love’ with a new generation of projects, attracted by the appeal of Sydney’s CBD. Values clearly indicate that it’s smart to be back in the city, and price is not an issue.”
However, apartment size, design, quality of finishes, location, and lifestyle all must be spot-on. Amenities generally expected include a pool, equipped gym, resort level resident’s lounge, dining room and gardens, private climate-controlled cellar, and concierge.
Strong high-end demand has also extended to the lower north-shore and select re-sales in the CBD. These include the soon-to-be completed 440sqm $14 million “Grand Luna” apartment in The Landmark, St Leonards, which is one the most expensive outside of the Sydney CBD.
A 223sqm $11 million listing at the Greenland Centre and a new listing of an “Aqualuna” Milsons Point penthouse, consisting of 275sqm internally and 50sqm externally, are both also going to market in early 2022.
“High-end-luxury demand is being locally driven, but all elements, including car parking must be available. Buyers understand quality, even to the point where they will, and do commit to a multi-million dollar purchase often only after a video tour. This means the quality must be instantly authenticated.”
While the current level of demand for apartments in the $10 million-plus bracket is unprecedented, it remains to be seen what impact the full re-opening of international borders will have. According to Colliers, there are reasonable expectations for even stronger demand as other high-end developments continue to boost Sydney’s appeal.
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