One Barangaroo leads as super-prime apartment off the plan sale prices strengthen
The higher demand for new super-prime apartments has prompted a 36 per cent value lift since June 2015, outperforming the established apartment market, according to recent Knight Frank research.
There had been a 31 per cent increase in established apartment values across the major cities in the same period.
However Sydney was the only city to buck the trend with its older stock up by 48 per cent compared to 30 per cent for new apartments, with limited new luxury products being launched across Sydney.
Knight Frank defines super-prime as the top 1 per cent of each market by value – a threshold of more than $10 million in Sydney and Melbourne and $7 million in Brisbane, Perth and the Gold Coast.
Sales of luxury apartments worth more than $10 million surged during the first half of 2021, compared to the decade average, the Knight Frank research shows.
The report calculated 67 super-prime luxury apartments changed hands around the nation, although the majority were at Crown Residences at One Barangaroo.
Inside the One Barangaroo penthouse
“The first half of 2021 was the first time it’s been possible that exchanged sales in the super-prime Crown Residences at One Barangaroo have been captured within the total residential sales volume by our research team," aid Michelle Ciesielski, Knight Frank’s head of residential research.
“What we saw in this time was the top five super-prime apartment sales in Sydney average $39 million, and four of these five apartment sales took place at One Barangaroo - reflecting the demand of our ultra-wealthy population for super-prime luxury homes in the sky.”
“The widening gap between buyer demand and appropriate property supply remains concerning, and residential construction difficulties continue to delay delivery of new products," said Michelle Ciesielski.
Inside the One Barangaroo penthouse
“The shortage of suitable product, particularly at the top end of the market where rightsizes play, has been exacerbated by developers unable to easily secure sites in prime locations adding to the highly pressurised buying environment across Australian cities.”
When it comes to prime residential, generally defined as the top 5% of each market by value across Australia, Knight Frank's latest report advised Sydney saw the greatest rise in apartment prices, some 10.6 percent, followed by 10 percent in the Gold Coast.
Knight Frank definition of prime sees a threshold of more than $3 million in Sydney and Melbourne and $2 million in Brisbane, Perth and the Gold Coast.
Prime price apartment prices increased 3.2% in 2020 to $25,500 psi, ranging from $13,000 psm to $65,000 psm.