The Ultra Rich Get Richer from Rising Trophy House Values

Collier says the ripple effect is spreading across the greater eastern suburbs. “A big demand in Bellevue Hill would normally spill over to Vaucluse or Woollahra, but that overflow has also spread to Centennial Park,” he said.

There is no median home price data for Centennial Park, given under-selling, but the suburb’s high has reset twice in recent months to $20.5 million, both well above the 2018 high of $16.5 million.

The Ganeden mansion sold for more than $62 million in February, boosting the Vaucluse median increase of 42.8 percent in the year to March.Credit:

Likewise, oceanfront suburbs such as North Bondi, Bronte and Clovelly are among the best-performing markets, rising 36.2 percent, 35.1 percent and 40.6 percent, respectively.

PPD’s Alexander Phillips says that in its core market, the slightly more affordable oceanfront suburbs, buyers are withdrawing more from the market given interest rates, stock market nerves and the general cost of living.

“If interest rates go up another 2 percent, things will be fine, but otherwise the market would falter,” Phillips said.

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Phillips says what keeps the market up from last year is the fact that there are far fewer properties for sale. “In April last year I did about 70 reviews, and in April I did 48. And May seems to be about the same,” Phillips said.

The best performing high-end market is Palm Beach, with an average house price of 50.2 percent.

The Upper North Shore’s most prestigious suburbs – from Wahroonga to Warrawee, Killara, Pymble, Lindfield and Gordon – have also seen median home price increases ahead of the Sydney average, led by Roseville’s growth of 35, 2 percent.

“With the pandemic, there is a good demand for large homes on a large lot with privacy, and that is reflected in these rising medians,” said Lynette Malcolm of Chadwick Real Estate.

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The broader inland median lagged Sydney’s, up 19.1 percent through March, but the most expensive neighborhoods were more optimistic, led by Birchgrove (40.8 percent increase), Annandale (33.5 percent increase). ) and Balmain (up 30.9 percent). cents).

One of the exceptions to the prestigious market in terms of a boom in median values ​​is Mosman, where the median home price rose just 9.5 percent despite record sales of $33 million in March.

But Atlas’s Michael Coombs says the numbers are hampered not by sales results, but by under-trade because inventory levels are so tight.

“There are plenty of buyers at that $20 million to $30 million level, but no one is selling,” Coombs said. As such, Coombs has convinced a few locals who were planning on selling next spring to put forward their sales plans to make the most of the demand, because “who knows what next year will bring?”

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