Lack of stock in inner city Potts Point sending prices higher

A historic home in Potts Point is back on the market with realistic expectations of a $34m sale. Six years ago the vendors rejected a $25m offer.

The Queensgate development in Potts Point.

The wealthy vendors of a historic home in Sydney’s Potts Point rejected $25m for the Macleay St house a few years back and now have relisted it with $34m expectations.

Leading agents such as CBRE Residential Projects director Ben Stewart reckon the paucity of stock coming on to the inner city Potts Point market could mean the owners of 2 Macleay St will get their money.

“There is such little supply in Potts Point, they will probably get $34m. It takes three to four years to get development approval in Potts Point, the (length of time) getting things approved continues to dry up supply,” Mr Stewart said.

“Potts Point, in particular the terraces in Victoria St are akin to the Belgravia of Australia,” he added.

With views over the harbour and naval base, 2 Macleay St, Potts Point is on the market for $30m-plus. Picture: Jane Dempster

There are so few houses traded in Potts Point it is difficult to formulate price rises over the years, but apartment values in the popular high density suburb have risen dramatically over the past five years, jumping 38 per cent, according to CoreLogic. During the past 12 months there has been a 15.2 per cent rise in unit prices, with the inner city suburb near Kings Cross now reporting a median apartment value of $1,094,482.

Mr Stewart says Potts Point’s diversity is popular with divorcees, empty nesters and people hailing from elsewhere in Sydney.

He is about to launch the Queensgate four tower luxury unit development on the former Kings Cross Bourbon & Beefsteak hotel site. The 52 apartments on offer will have four different interiors to choose from while the three bedroom penthouses will sport private plunge pools and views of Sydney Harbour and the Opera House.

All apartments will sport the prized Sub-Zero and Wolf brand appliances. Some of them will have three metre-high ceilings due to the heritage character of the development and there will be a range of one, two and three bedroom layouts. Mr Stewart said pricing had not been determined but he reckons the four penthouses atop the four buildings will be priced from circa $15m apiece.

El-Alamein Memorial Fountain in Potts Point. Picture: Jane Dempster

Interior specialists TZG and BKH will design and offer four separate interiors for the apartments in two display suites with marketing to commence early November. Mr Stewart said construction of Queensgate, being developed by Iris Capital, will start early next year with completion by 2023.

“I have been selling apartments for more than 20 years in Potts Point and it’s always been an area of very little supply, a diverse type of buyer, young professionals, empty nesters, divorcees and we are seeing a lot of people from the Lower North Shore, their kids have moved to the Eastern Suburbs, so they move to Potts Point because there is so much choice in terms of restaurants, there’s lovely amenities at your door stop,” Mr Stewart said.

“There is a transformation in Potts Point, there’s an improvement in Kings Cross it has new eateries opening up, at Omnia there are units selling for more than $50,000sq m, you go down to the (El-Alamein) fountain and the market on a Saturday is buzzing. It has a great community with such great diversity.”

Luxury shops and restaurants line the street in the popular suburb. Picture: Jane Dempster

According to publicly available documents on CoreLogic, car dealer Terry Mullens and his wife Wendy did not sell 2 Macleay St during a long campaign which ran in 2014 and again in 2015 through Black Diamondz Property Concierge. The selling agent Robert Page, then an agent with Black Diamondz, secured an offer of $25m for the property from a prominent Sydney identity but the Mullens declined to sell even though Mr Page had secured their required asking price.

Mr Mullens paid $15m for the house in 2009. Two weeks ago the selling agent said Mr Mullens wanted $30m for the 1868-built house with an extra $4m added within a day of it hitting the market.