The Sydney holiday rentals that the rich call home for summer

Cashed-up international visitors and returning expats are paying up to six figures to stay in Sydney’s prime locations for one week this summer.

Demand for glamorous harbourside abodes and coastal homes in Sydney is the strongest it has been in years, as rich holidaymakers look to splash their cash in their harbour city once more.

Cashed-up holidaymakers are spending big on glamorous holiday homes this summer. Credit: Contemporary Hotels

It comes after a sluggish few years for Sydney’s luxury holiday home market, as closed borders earlier in the pandemic prevented international arrivals, and wealthy locals steered clear of city vacations.

Contemporary Hotels chief executive Matthew Fleming said it was the first time in four years people had come back to Sydney.

“We had the summer bushfires … with the big thick smog and the international press was quite savage (which deterred visitors) and then the pandemic,” he said.

This three-bedroom apartment in Point Piper can be enjoyed for $35,000 per week at the holidays.Credit: Contemporary Hotels

The majority of Sydney properties on his books — largely across the northern beaches and eastern suburbs — cost between $20,000 and $50,000 per week over the peak holiday period, but some prestige properties command even larger premiums.

Among them is a seven-bedroom mansion in Bellevue Hill, complete with a tennis court, pool, and water views, which can cost up to $150,000 per week, if full concierge services are included.

This seven-bedroom Bellevue Hill house costs upwards of $150,000 per week to rent over the holidays.Credit: Contemporary Hotels

Other high-end homes include a three-bedroom Point Piper apartment with harbour bridge views which rents for $35,000 per week, a four-bedroom Bondi Beach penthouse that costs $25,000 per week, and a four-bedroom Palm Beach house that leases for $40,000 per week.

Fleming said the most lucrative bookings were from international travellers, mostly from the US or Europe, who were looking at Australia as a once in a decade or lifetime trip.

“They’ll spend big to do it to absolutely perfection, with full concierge services and tailor made experiences,” he said.

This Palm Beach home with an infinity edge mineral pool rents for $40,000 per week.Credit: Contemporary Hotels

However, the return of international travel has led to less domestic demand, Fleming noted. A lot of his local high net worth clients have headed overseas, and this has left more bookings available in places like Palm Beach and the Southern Highlands.

Luxico founder and managing director Alexandra Ormerod has also seen strong demand for large Sydney homes, from both international travellers, returning expats, and domestic tourists seeking a luxury city escape after multiple years of road trips.

“A lot of VIP travellers are coming back into Sydney; touring artists and people in the film industry … I think we’ve got more VIP stays this summer than we’ve ever had in a single period,” she said.

Balmoral Luxury Estate costs about $10,000 per night over the holiday period.Credit: Luxico

Ormerod said it was standard for high-end homes in harbourside suburbs and the city’s east to cost $2000 per night over the holiday period. Premium properties could cost as much as $10,000 to $15,000 per night, for a minimum seven-night stay.

Among the most luxurious homes in her portfolio are a five-bedroom house with a pool in Darling Point, and a similar Balmoral home, which both cost upwards of $10,000 per night.

Balmoral Golden Mile Luxe rents for more than $11,000 per night over the holiday period, and for more than $9600 per night in mid January.Credit: Luxico

“There has been a shift back to the city … [but] the regions have struggled as a result,” Ormerod added.

“Byron Bay, the south coast, those sorts of markets … have really come back … because some of that big money has gone overseas.”

More supply in areas like Byron Bay meant pricing for some properties had dropped, and holidaymakers had better chances of securing a last-minute deal, Ormerod said.

This eight-bedroom home in Berry rents for $3500 per night on average, over the Christmas and New Year period. Credit: Stayz

Even in Sydney there was still availability in January for luxury stays. However, she did not expect that to last, given an increase in last-minute bookings in recent years.

Stayz travel expert Simone Scoppa said it was often the most expensive inventory that was still available last minute. While Australians typically booked summer holidays around September, bookings had peaked in July last year.

Scoppa said many coastal destinations were booked out until Australia Day, but there was still some availability in locations like the Southern Highlands and Snowy Mountains, where large luxury homes could accommodate multi-generational families or groups of friends who could split the cost.

A seven night stay at this two-bedroom Kirribilli unit will set you back more than $42,000 over the new year period. By mid-January it will cost about $4000.Credit: Stayz

“I’m going to the Southern Highlands myself … we’ve got about eight people and it’s $1800 per night,” she said.

Looking at mid-week availability, and later in the month was also a good option for those looking to luxury stays at a more affordable price point, she said.