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Record breaking sale pushes luxury market

Record breaking sale pushes luxury market

by Reporter 0 comments

Steven Cross

A Sydney waterfront property sold for $33 million last week, the third highest price ever recorded in the NSW capital.

According to News Limited, The Point Piper was the home of Bruce McWilliam, commercial director of the Seven Network who bought it for $24 million in 2006 - the highest sale that year.

Ballard Property's Bill Bridges claimed the deal had taken months to negotiate, but would not comment on details surrounding the sale due to confidentiality agreements.

Sydney-based prestige agent Ken Jacobs believes increasing confidence is the biggest indicator of the luxury market.

“It appears we are now going back to an equity and savings driven environment, by this I mean an aversion to being too highly geared has returned," he said.

Mr Jacobs wrote about the luxury market prior to the record-breaking sale in an opinion piece for Domain.

“While improvements in the sharemarket results in an increased monetary flow, the major effect is an increase in buyer confidence, and lack of confidence has without doubt had the most damaging impact on the prestige market," he said in the article.

Mr Jacobs also believes stock levels have been dwindling since the beginning of the year.

“Our activity in December and January certainly suggests this will be the case, as we have increased interest from buyers wanting to purchase and in particular offshore interest," he said.

“The amount of prestige property is drying up. At some price points, particularly in the double digit price range, there is actually an under-supply of quality stock so it will be interesting to see what new stock comes to the market in the first quarter of the year.”

The highest recorded house price in Sydney was for Coolong, the 4,100-square metre waterfront property at Coolong Road, Vaucluse, which the late David Coe sold for $45 million in 2008 to expat currency trader Ivan Ritossa and his wife Marina.

The second highest recorded price is $44 million for Villa Veneto, a waterfront mansion in Wolseley Road, Point Piper, sold in 2010 by Andrea Banks, the wife of head hunter Andrew Banks, to the Penn family.

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Record breaking sale pushes luxury market
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