Real estate: ‘jumbo prestige’ property enjoys recession-defying boom
Australia’s richest are putting their faith in real estate on a scale never seen before, as ‘jumbo prestige’ property enjoys a stunning recession-defying boom in a good sign for the rest of us.
National
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Australia’s richest citizens are putting their faith in real estate on a scale never seen before, as blue chip property enjoys a stunning recession-defying boom.
The top sales values of our “jumbo prestige” homes have skyrocketed by a year-on-year record of more than 50 per cent — a sure sign Australia’s wealthiest are betting big on their homes in these uncertain times.
Spearheaded by the $95 million sale of the incredible Sydney waterfront mansion Edgewater last month, almost $310 million worth of property changed hands at the top end of our property market last quarter, according to highly respected valuer Dyson Austen’s Top 10 Prestige Residential Survey.
It’s in incredible sign of faith in Australia property as the nation continues to grapple with COVID-19 and a positive pointer to what the rest of the market can expect for the remainder of this year and into 2021.
Trends at the top end of the market are invariably the vanguard for the lower echelons. In good times and in bad.
“If you look at that, bearing in mind we have had six months of a coronavirus recession, it really is an incredible result and it cements why the jumbo prestige market is so strong,” Simon Feilich, Director at Dyson Austen said.
“It doesn’t work in concert with unemployment. It is a store of wealth.”
It is also a sign of the times.
THE REAL ESTATE ZEITGEIST
Last year $197 million was splashed in the top 10 sales during the third quarter, according to the Top 10 Survey, which is based on results in NSW, the market with the vast majority of ultra top end sales.
Sales from the second to the third quarter of 2019 (which takes in two months of the traditional spring selling season) rose by 16 per cent, this year the top sales values rose by almost 100 per cent over the same period.
“What sells best these days is always an estate-like parcel of land, with resort-style facilities,” Mr Feilich said.
“The wealthy want the latest and greatest or really magnificent classical architecture. The charm of yesteryear but also what makes it completely relevant in today’s world.
“They want a statement piece that can be seen and enjoyed behind the gates of the estate, with a level of privacy.”
PROPERTY OWNERS DISCOVER ‘COVID-CLARITY’
“COVID-clarity” is playing a role here too. As the uber wealthy look to increase the value of their estates.
As evidenced in our Top 50 Homes project, some of our wealthiest tech barons are busy expanding their incredible $100 million plus properties to optimise their high-flying lifestyles and create a safe haven for their booming wealth.
Atlassian co-founders and co-CEOs Mike Cannon-Brookes and Scott Farquhar have been busy submitting and resubmitting renovation plans.
So too Menulog founder Leon Kamenev, who has snapped up three waterfront properties side-by-side in what many regard at the best street in Australia, Coolong Rd Vaucluse, as he also plans a $100m plus harbourside resort for his family.
Cannon-Brooks and Farquhar, who live side-by-side in the resplendent estates of Fairwater (which featured in 2018’s top third quarter sales) and Elaine are planning to expand their homes to rival anything the Hilton hotels chain can offer.
And not to be outdone Meriton boss Harry Triguboff, who lives on the other side of Vaucluse Bay to Kamenev in the suburb’s biggest residential land holding, has just filed plans to significantly alter his $100m+ estate.
In Melbourne, Australia’s fourth richest man Richard Pratt has been busy extending and enhancing his $100m+ 1ha estate Raheen in Kew, rated Victoria’s top home, to create a mammoth family compound.
In Brisbane, Gina Rhineheart and Clive Palmer have been doing likewise.
“The COVID-clarity these homeowners have had, has seen them reimagine what they want in a home,” Mr Feilich said.
“There are his and hers workplaces, wraparound work spaces the whole family can use at the same time, few people had a golf room before but now it’s almost a must-have, putting greens, lifts and a fluid transition between formal and informal”.
“More than perhaps ever before property has become a safe haven,” leading industry figure and real estate coach Tom Panos explains.
“COVID-19 has given these people a clarity about what they want in their homes and in investing in that, they are investing in their futures too, in terms of capital growth and lifestyle.”
Michael Pallier, Sotheby’s managing director, is one of Australia’s leading prestige sales agents and was behind the sale of Edgewater.
“Even for $100 million, the house is not going to be perfect in every sense,” he said.
“There has to be compromise. The view might not be good enough, the aspect might not be quite right, the land may be too steep and potential buyers love to play these homes down like any other. I had one buyer who told me they didn’t like the view of the Opera House.”
Maybe our buyer is onto something here though, with many of our readers voting Australia’s most expensive houses as overrated.
“Another crucial thing I have learnt is that nothing enhances like ownership,” Mr Pallier said.
“Money and emotion can be hard to separate. Once its yours, you inherently feel the home is worth more than it is.”
NSW Top 10 Sales Q3 2020
1. 92 Wolseley Road Point Piper: $95 million
2. 31 Coolong Road Vaucluse: $34 million
3. 20A Vaucluse Road Vaucluse: $30 million
4. 42 Vaucluse Road Vaucluse: $24.6 million
5. 5 Bennett Avenue Darling Point: $22.65 million
6. 98 Victoria Road Bellevue Hill $22 million
7. 26 Plunkett Road Mosman $21 million
8. 3 Baden Road Neutral Bay $19.5 million
9. 4/6 Buckhurst AvenuePoint Piper $18 million
10. 57 Gardyne Street Bronte $17.9 million
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