REA

NERIDA CONISBEE

Living in luxury

The most expensive home ever sold in Australia isn’t a waterfront on Sydney Harbour, nor is it an exclusive Toorak mansion. It’s an apartment. Last year, a penthouse in Lendlease’s One Sydney Harbour development sold for $140 million. The apartment doesn’t even exist yet, but it still managed to sell for $40 million more than the second most expensive home ever sold in Australia, Fairwater in Point Piper.

On face value, the differences between Fairwater and the One Sydney Harbour penthouse are stark. Sitting on 1.12ha of absolute beachfront land, Fairwater is sprawling. The penthouse, on the other hand, measures more than 1000sq m – enormous for an apartment – but it lacks land.

The biggest difference is that Fairwater is very similar to all of the other ultra-premium homes that have been sold in Australia, while the One Sydney Harbour penthouse is unusual in that most people who live in apartments rent them and generally pay less than they would for a house in the same suburb.

Traditionally in Australia, expensive apartment living has been rare and luxury apartment living unheard of. But by the end of this decade more Australians will be living in apartments and the number of ultra-luxury apartments developed will rise dramatically. For most apartment dwellers, the driving factors are affordability, amenity, suburb desirability and lifestyle choice. For someone who can easily afford a notoriously luxurious property such as Fairwater, Elaine or Rona but who decides to buy an apartment, the drivers are very different. It’s all about lifestyle.

In an increasingly globalised world, wealthy people travel a lot and often have expensive apartments in many cities. Looking after multiple Fairwater-esque homes scattered across the globe is exhausting and expensive, even if you do have a lot of cash. You also don’t need an acre of garden when dropping into Sydney to stay for a week. An apartment is more convenient, and it allows buyers to architecturally design their home to suit their needs in a premium suburb. Security is also crucial – it’s easier to lock up and leave an apartment if you like to holiday a lot.

The biggest difference, however, is in the services available within a luxury apartment. A great concierge service means there’s always someone to coordinate your laundry, handle maintenance and get you a restaurant booking. Organising parties, looking after pets and overseeing renovations may also be on offer. Links to luxury hotels are common and you can expect the level of service you get in a hotel to be provided in your sky-high home.

As we continue to watch the rise of ultra-luxury apartments, it’s interesting to note the differences in popularity and price between new developments and existing luxury apartments.

According to realestate.com.au, the most expensive apartment in an established development sold for $24.6 million in 2012. More recently, Lleyton and Bec Hewitt spent years trying to sell their 1100+sq m Melbourne penthouse, which eventually sold at a reported loss. While new apartments reign supreme for now, it’ll only be a matter of time before existing ultra-luxury apartments benefit from the ripple effect.

Nerida Conisbee, realestate.com.au Chief Economist

Most expensive established apartment sales recored on realestate.com.au

Address Year Price ($M)

26/1 Macquarie St, Sydney, NSW 2000 2012 $24.6

88/8 College St, Sydney, NSW 2000 2019 $14.5

3/10 Wentworth St, Point Piper, NSW 2027 2016 $13.5

4/47-49 Wolseley Rd, Point Piper, NSW 2027 2017 $13.5

1/28 Billyard Ave, Elizabeth Bay, NSW 2011 2013 $12.3

2/93 South Perth Esplanade, South Perth, WA 6151 2017 $12.2

7/22 Macleay St, Potts Point, NSW 2011 2014 $11

Apartment 1, 6 Buckhurst Ave, Point Piper, NSW 2027 2011 $10.8

‘Wintergarden’ 4/614 New South Head Rd, Rose Bay, NSW 2019 2019 $10.3