Hundreds of millions spent on penthouses in 2023

High high prices, high demand, high position. Luxury penthouses are the next star of the evolving apartment market. Here are the latest mega deals.

Artist impressions of Crown Residences at One Barangaroo in Sydney.

Hundreds of millions of dollars in penthouse deals have been struck around the country in the first half of the year as the top end of the market continues to perform.

The collection of mega-deals largely secured along the country’s east coast have defied market expectations in a slowing economy being hit from both sides by inflation and interest rates.

In Double Bay, buyers have sunk $37.5m into developer Top Spring’s six-storey Ode project in the past six months before the final build is even complete.

Artist impressions of an off-the-plan penthouse apartment in Sydney's Double Bay which has sold for $21.49m. Picture: Supplied

The two deals for a penthouse and sub-penthouse follow the $24.9m sale of another sky home in August 2022, which raised the suburb’s apartment record by 50 per cent and brings total sales in the Ode building so far to $105m. One penthouse remains for sale within the mixed-use project.

Last month, One Circular Quay surpassed $1bn in sales within the luxurious tower, which boasts a prime position with panoramic views of Sydney Harbour.

The penthouse within One Circular Quay is expected to be on par with the most expensive property sold in Australia, set by the $140m penthouse of One Sydney Harbour at Barangaroo in 2019.

However, the crowning jewel of Crown’s One Barangaroo tower is also available at a slightly cheaper price point of $100m.

Artist impressions of Crown Residences at One Barangaroo in Sydney. Supplied.

Downsizers and “right sizers” are traditionally the key demographic for penthouse homes. In the past few years, there has been increased demand for higher-end owner-occupier apartments and penthouses.

Apartments expert Richard Temlett, director of research and strategy at Charter Keck Cramer, believes the demand shift is the next evolution and maturation of the apartment market across Australian capital cities and that take-up would be faster if more penthouse- style housing was on offer.

“There is a huge amount of demand in those best areas of Sydney and Melbourne’s south- eastern suburbs for high-end penthouses,” Mr Temlett says.

“Then when you look at certain pockets in the Gold Coast and Brisbane as well, they (developers) might be doing 10 apartments across 10 levels and that is selling really, really well.

“A lot of buyers aren’t actually impacted by interest rates. They typically don’t have a mortgage, so they are making that lifestyle decision for the right reasons.

“As long as they can actually get some certainty with the quality of products and the timing that it’s going to be delivered, there is a huge amount of demand for penthouses.”

But it’s not just older Australians choosing to shift into luxury apartment living.

Adrian Portelli with his $3m McLaren after it was craned into his Melbourne penthouse. Image supplied.

Tech billionaire Adrian Portelli became the owner of Melbourne’s most expensive penthouse in May after the 34-year-old dropped $39m on the luxury property.

He made headlines soon after for craning his McLaren Senna GTR hundreds of metres into the air to install the art piece into one of the dual levels of his weekender within the Sapphire by The Gardens building, which adjoins the 60-storey Shangri-La Hotel near the UNESCO World Heritage-Listed Carlton Gardens.

In Brisbane, numerous price and size records have been struck in 2023 alone. Buyers also have their choice, with multiple off-the-plan and established properties offered on the market.

On the edge of the city’s namesake river, twin-tower project Monarch Residences has secured more than $200m in sales since it hit the market, but the crowning jewels are still up for grabs.

The project carries 11 penthouses starting at $4.25m, each embodying the design mantra of relaxed luxury, with a focus on comfortable living space and quality fit-outs.

However, the project’s biggest penthouse at 406 sqm of living against the backdrop of the river will set the right buyer back $12m.

An artist's impression of the balcony on one of the penthouses in Consolidated Property Group's Monarch Residences. Image supplied.

Consolidated Properties head of residential James MacGinley says the market has matured to a point that makes quality projects akin to Monarch Residences possible.

“If we had tried to do this five years ago, I don’t think we would have been as successful, notwithstanding how good the site is,” Mr MacGinley says.

“Where the market has gotten to now, with that wave of 55- to 75-year-olds coming through who have had ridden that 30-year property boom, I suppose that is really starting to drive the ability for people to really buy into luxury products like this.”

The inner-city river-hugging peninsula of New Farm has also attracted a number of big recent sales. The two-storey top property in developer Tom Dooley’s Argyle sold for $16.5m in March, while a penthouse in Spyre Group’s Moray House fetched $15.75m off the plan in January.

The former apartment record holder in Brisbane – 250/1 Newstead Terrace in the neighbouring suburb of Newstead – is back on the market for the first time after it sold for $14.25m in 2008 as part of Mirvac’s $10 billion development.

Meanwhile, a professional couple in their 40s are selling their Parramatta, NSW penthouse, with a price guide of $4m

Richard Temlett believes the opportunity will grow for developers in the next decade.

“There’s a significant opportunity, there’s an education piece to explain to these buyers … penthouses are the next evolution of the Australian apartment market,” he says.