As Sydney’s house price falls near the dreaded 15 per cent mark, the harbour city’s prime residential market is still holding up with Crown Resorts’ recording more than $160 million in sales.
Just four ultra-high-end apartments sold off-the-plan for more than $40 million each at One Barangaroo, Knight Frank broker Erin Van Tuil confirmed.
Developed by James Packer’s Crown Resorts, the 71-storey, $2.2 billion project is about 16 months into construction, with level 33 scheduled to be poured by Lendlease in July.
Sales for off-the-plan apartments in the luxury residential market have remained strong, with the four $40 million-plus sales at One Barangaroo adding to James Packer’s $60 million two-level apartment purchase in the tower.
The sales at One Barangaroo have been to predominantly local buyers, Van Tuil said.
And buyers can be sure that their harbour views will remain intact, after Crown and developer Lendlease launched a legal bid over site lines against the government’s Barangaroo Delivery Authority.
The Supreme Court delivered its decision in Crown’s favour in December.
Van Tuil said sales to date at One Barangaroo have been strong but declined to comment on the rumoured $100 million penthouse price tag.
“Although Sydney is probably ready for a $100 million sale.”
Knight Frank expects the strength of Australia’s luxury residential markets to continue against a backdrop of credit curbs and market headwinds.
Despite recent value falls — Corelogic’s latest numbers show Sydney house values falling 11.3 per cent over the past year and unit values down 8.2 per cent — the cost of housing in Sydney remains significantly more expensive than any other capital city.
In its quarterly prime global cities report, Knight Frank predicts the growing number of high-net-worth individuals will buoy an otherwise slowing market.
“Over the past five years four millionaires were created every day in Sydney,” Knight Frank head of residential research Michelle Ciesielski said.
“This is expected to rise to 11 millionaires per day over the next five years.”
Sydney’s prime market recorded 2.4 per cent price growth over the 12 months to March, which is expected to slow to 2 per cent over the next year.
“With competition for limited stock, we expect to see positive price growth for luxury homes, albeit at a more sustainable pace than in previous years,” Knight Frank head of residential Sarah Harding said.