Prestige rentals: Luxury Vaucluse waterfront home for $30k a week

Sydney’s prestige rental market has been flagged as one of the fastest-growing in the world, typified by a waterfront Vaucluse home being listed for $30,000 per week.

A private, harbourfront property with views stretching from Watsons Bay to Manly in the exclusive eastern suburbs Sydney pocket of Vaucluse is being offered on the rental market for $30,000 a week.

Sydney’s prestige rental market has been flagged as one of the fastest-growing in the world over the past year, typified by a waterfront Vaucluse home being listed at an asking rental of $30,000 per week.

Strong numbers of returning expats and blown-out renovation timelines are two of the factors underpinning demand in the luxury rental marketplace, driving prime residential rents 7.5 per cent higher over the year to March, new data from international real estate firm Knight Frank has found.

Sydney is now the fifth strongest high-end rental market in the world according to the report released this week behind New York and London, but Knight Frank Australia’s head of residential research Michelle Ciesielski explained the local market has been quite insulated through the pandemic compared to other global cities due to its relatively small size and tight concentration.

“When in town for business, regular international corporate travellers tend to lean more on hotel and short-stay accommodation,” Ciesielski said

“So when the global pandemic limited activity within proximity of the CBD, Sydney’s overall prime rental market wasn’t as impacted compared to cities like New York and London.”

A private, harbourfront property with views stretching from Watsons Bay to Manly in the exclusive eastern suburbs Sydney pocket of Vaucluse is being offered on the rental market for $30,000 a week. Edged on one side by native trees the four bedroom, five garage home with a gym and soundproof music studio is looking for its next tenant. And someone is likely to rent it Ray White Double Bay principal Michael Krimotat said, with the property previously rented for a similar price. Bond for a home of this calibre will total $120,000 upfront, as standard.

Sydney is now the fifth strongest high-end rental market in the world.

“We’ve got three to four groups we’re getting through next week,” he said.

Demand for high-end rentals has been sustained through the pandemic, said Sydney Sotheby’s International Realty managing director Michael Pallier.

Not only are expats still returning – albeit at a slower pace than they were in the early days of the pandemic – homeowners doing renovations on their homes are looking for rentals given blow out timelines for building works. It works out to be about a 50/50 split.

Mr Pallier said this is driving costs in the eastern suburbs up to $8000 per week for a “really nice place”.

“There’s not a lot of stock around but really strong demand,” Mr Pallier said.

In Melbourne, Kay & Burton South Yarra agent Darren McMullin said there are many homes being offered for rent off market. “Dealing with high-net-worth clientele, we do need to be really mindful of their privacy,” he said. Interstate and expat migration has helped to underpin Brisbane’s luxury rental market. Place Bulimba agent Matt Dickson recently rented a riverfront home at Hawthorne on a two-year lease for $2500 per week.