Luxury apartments inspire Sydney CBD buyers
The demand for luxury apartments in the Sydney CBD and lower North Shore has never been stronger, in a trend that is, according to Blake Schulze our National Director, Project Marketing Residential with Colliers International, strongly driving apartment sales in the $10 million-plus bracket.
“Over the last 6-months of 2021 we’ve seen the strongest demand for high-end apartments ever experienced, and it’s a trend we expect to continue into 2022” said Blake Schulze.
“It’s a trend that strengthened at a time when a lot of attention was being focussed away from the CBD towards trophy homes and regional activity” he added.
“However, I’m not suggesting we were surprised as it affirms how in particular parts of the Sydney CBD have successfully evolved into a quality and desirable world-class apartment market.”
The demand for high-end apartments has been clearly demonstrated across a range of new projects including; 111 Castlereagh Street, One Sydney Harbour and Crown Residences Barangaroo and the Sirius Building.
Stand out transactions include all of the available penthouses (sold off the plan) at 111 Castlereagh Street. The penthouse collection consisting of The Jones, The MacKellar and The Cambridge Residences have sold for a combined total of $66 million.
However, from my perspective what’s an even stronger confirmation of the trend, is the fact that these sales occurred during last year’s lockdown and largely in the absence of any specific marketing.
We’ve also noted that sales are running ahead of any familiar or traditional trends, with demand concentrated out of Sydney’s East and Northshore, and not necessarily driven by down-sizers.
This level of high-end demand also further distinguishes Sydney’s CBD apartment market as distinct from trends we see in Melbourne and Brisbane.
At its northern point, Sydney’s CBD is surrounded by the harbour, while the botanic gardens and Domain elevates the appeal of the eastern perimeter. These natural advantages combined with the emergence of a new project has created a unique market adding depth to Sydney’s appeal.
Our experience is that current high-end buyers often own multiple homes, these are buyers who have ‘fallen in love’ with a new generation of projects, and are attracted by the dynamics of Sydney’s CBD.
Values clearly indicate that it’s smart to be back in the city, and price is not an issue. This begs the question of how demand will respond when Covid restrictions end and internal borders re-open later this month.
However, apartment size, design, quality of finishes, location, and lifestyle – all must be spot-on. Amenities generally include a large pool, equipped gym, resort level residents lounge, dining room and gardens, private climate-controlled cellar, and concierge
Strong high-end demand has also extended to the lower north-shore and select re-sales in the CBD.
These include the soon-to-be completed 440sqm $14m “Grand Luna” apartment in The Landmark St Leonards one of the most expensive outside the Sydney CBD.
A 223sqm $11m listing at the Greenland Centre and a new listing of an “Aqualuna” Milsons Point penthouse consisting of 275sqm internal and 50sqm external, is going to market in early 2022.
High-end-luxury demand is being locally driven, but all elements, including car parking, must be available.
Our buyers understand quality, even to the point where they will, and do commit to a multi-million purchase often only after a video tour. This means the quality must be instantly authenticated.
While the current level of demand for apartments in the $10m plus bracket has never been as strong, it remains to be seen what impact the full re-opening of borders will have.
There’s also cause to be roundly optimistic about the eventual full recovery of the wider CBD and the continued delivery of new infrastructure such as the Metro.
I suggest there are reasonable expectations for even stronger demand as other prestige developments continue to boost Sydney’s appeal for high-end apartments.