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The Sydney suburbs giving Point Piper and Vaucluse a run for their money
By Lucy Macken
Sydney’s top house sales have traditionally been the sole domain of the harbourside eastern suburbs, but it seems the well-heeled homeowners of Vaucluse, Point Piper and Bellevue Hill no longer monopolise the rarefied trophy home market.
In a significant break with tradition, bridesmaid suburbs - regarded as areas that are at best a runner-up to a more coveted address - have dominated this year’s trophy home market, narrowing the gap between the top prices achievable in the eastern suburbs and broader Sydney markets.
This isn’t just a Sydney phenomenon, according to Forbes Global Properties’ Ken Jacobs.
“What’s changed in Sydney is the same thing that has changed across the trophy markets in cities worldwide, and that’s a trend towards trophy homes that offer a more attractive lifestyle alternative as an escape,” he said.
That said, Jacobs adds, “it’s not that these exclusive areas are losing their lustre or appeal. It’s that there is this greater desire for an escape property, and that’s easier to find outside the usual harbourside suburbs.”
Jacobs’ most recent sale is a case in point: A 1920s bungalow at Tamarama set on a triple lot privately elevated above the beach for close to $47 million. Its sale has set a high for the oceanfront suburbs, and is the highest house sale outside the harbourside.
The Tamarama house Lang Syne is set on the headland above the beach on a 1100 square metre parcel.Credit: Louie Douvis.
The Tamarama sale comes 10 days after a P&O-style house in Vaucluse on a similar land size, known as Point Seymour, sold for about $40 million, complete with gun-barrel views up and down the harbour.
The Agency’s Ben Collier said when there are so few such trophy homes for sale in the usual harbourside suburbs - as is the case at the moment - it forces buyers to look elsewhere. “And the ripple effect of a sale like Tamarama will bring values up in that area accordingly,” Collier said.
At the other end of the harbour in Manly, once regarded as in the shadow of prestigious Mosman, Clarke& Humel’s Michael Clarke said he is now drawing interest from buyers all over the world.
“We’re not in competition with other suburbs so much as [we’re competing] with what’s on offer in other global cities. And that’s because people want the natural beauty of Manly and to be only a 15-minute ferry ride from the city.”
The sale of the 3000 square metre property in Clontarf is the highest locally.Credit: Domain
To that end, Manly’s top house price has soared in the past 10 years from what was $9.76 million on Bower Street to a $23 million knock-down rebuild at Shelley Beach last year.
But the area’s top price is no longer held by Manly. Instead, Clontarf recently claimed a record of more than $32 million when Madina Tao and Mongkol Phara, both members of Cambodia’s ruling families, sold their seven-bedroom mansion to a buyer in China.
“But we’ve seen nothing yet,” adds Clarke. “The best houses in Manly, the real trophy homes haven’t even hit the market yet.”
The Marara estate at Avalon Beach was for sale for 13 years before it sold for about $40 million recently.Credit: Domain
Fuelling the demand side of the equation are the growing ranks of ultra-wealthy Australians. According to new data released this week by Knight Frank as part of its Wealth Report 2023, the amount of money you need to qualify as part of Australia’s top one per cent in terms of wealth has doubled in the past two years to $8.25 million.
And the number of ultra-wealthy is expected to grow. Those defined as having a net wealth of more than $US30 million are forecast to grow in number by 40.9 per cent over the coming five years.
Expats and international buyers are also tempted by the fact the Aussie dollar was trading at 67 cents to the US dollar this week, said Alison Coopes, of her eponymous agency.
Coopes saw the first upset to usual trophy home sales late last year when she sold the historic Idlemere mansion on the waterfront at Lavender Bay for $42.2 million, far in excess of the highest house sales in Mosman.
The home of Anna and John Virgona was redesigned by Playoust Churcher Architects before it sold for $20 million.
Tony Le Nevez, managing director at global residency and investment advisors Henley & Partners, said while our education system and status as a safe haven are often the initial attraction for the world’s wealthy, the lack of any inheritance tax in Australia is another pertinent factor.
Sotheby’s Michael Pallier agrees, saying the lack of any inheritance tax in Australia is often seen as a major positive, but no-one wants to bring attention to that in case the government gets ideas.
“A client who recently sold in London said they didn’t make any money on it despite owning it for 10 years because supply is much higher there. Death duties [set at 40 per cent in the UK] mean when someone dies the family are often forced to sell to pay the tax.”