The Rise & Rise of Sydney’s Prestige Property Market

According to Knight Frank’s Prime Global Forecast for 2021, the value of prestige property is set to keep rising. Fuelled primarily by strong demand from local buyers and low interest rates, Sydney’s prestige property prices are forecast to continue their upward trajectory, rising a further 3 per cent next year.

> View/download the report (4mb PDF)

2020 has been an exceptional year for prestige property in Sydney. As a case in point, last weekend two Eastern Suburbs residences were sold at auction by Sydney Sotheby’s International Realty. A north shore buyer paid $16.66 million for a Vaucluse Mansion at 41 Vaucluse Road, after it was listed with a price guide of $9 million to $9.9 million. And, a Bellevue Hill home at 29 Kambala Road sold for $11.01 million, a whopping $1.5 million above the reserve price.

“While we experienced great challenges this year with COVID-19, our data shows that prime property markets around the world have remained largely resilient,” Knight Frank head of residential research Australia Michelle Ciesielski said. “This has particularly been the case in Australia, with our biggest cities of Sydney and Melbourne continuing to see growth despite lockdowns.”

Barry and Mark Goldman from Sydney Sotheby’s International Realty both agree with the Knight Frank forecasts for 2021.

“The market right now for prestige property is red hot’, Barry remarked. “And when it comes to buyers, we’ve seen a good mix of high net-worth locals, returning ex-pats and investors snapping up property as quick as we can list them”.

“In recent months we have also seen many of our high-end properties sold ‘off-market’, with both the sale and the price kept out of the public domain”. When asked to explain, Mark went on to say, “Selling a property ‘off-market’, simply means that a traditional marketing campaign was either not required, or that the sale was private and the negotiations highly confidential, which at the top-end of the market can often be a prerequisite”. This has meant that many of the most expensive property sales from 2020 have been kept out of the press.

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Here are some related articles from Domain:

> Sydney auctions: Vaucluse house sells for $16.66 million
> Bellevue Hill home sells for a whopping $1.5 million above reserve at auction
> Credit Suisse CEO Richard Gibb snaps up $11 million Woollahra house