Demand for top buys
Interstate comparisons reflect favourably on ‘bargain’ penthouses
IT’S considered the icing on the cake, the creme de la creme, the best of the best in apartment living.
I’m talking about the notso-humble penthouse – that aspirational piece of real estate that is always in demand and which everyone would love to own.
A string of recent highprofile penthouse sales proves these trophy homes still hold sway among wellheeled buyers, particularly with those wanting a housesized home minus the maintenance.
Among the swath of boutique developments going up along the Coast, the penthouses have often been the first to sell.
In Burleigh’s Luna development, where prices started at $3.9m, a Gold Coast couple secured the penthouse before the development launched, while surf-mad developer Paul Gedoun decided he couldn’t part with the $10m penthouse in his Flow project in Coolangatta, set to be completed in 2022.
Farther north, Gold Coast entertainment entrepreneurs Billy and Jackie Cross paid $6m-plus for the top floor apartment in the 32-floor White Tower in Main Beach.
Penthouses still on the market carry equally weighty price tags, such as the twostorey apartment crowning the The Monaco in Main Beach, available for $8.9m.
And it’s not only new builds that are in demand, the old guard along the coast are also attracting record sales.
None more so than the Palazzo Versace. While its hotel rooms may have lost some of their lustre – reviewers last week panned the hotel calling it tired and outdated – the penthouse residences are tightly held.
Duncan Longmore of Kollosche Prestige this month sold two of the complex’s six penthouses offmarket for $6.25m and $6.42m, a record for the building.
A two-bedroom, two-storey penthouse in the hotel’s south building is still for sale through the agent and is open to expressions of interest.
Mr Longmore said there was demand for prestige properties from three areas: interstate buyers seeking lifestyle, exclusivity and space; locals looking to step up to get into a trophy holding; and high-net worth people from Melbourne and Sydney wanting to secure something of value in the market.
“People looking for property in Sydney, where they are paying up to $50,000 a square metre in some places, come up here and see something similar for $10,000 a square metre and think it’s a bargain.”
Josh Mana of prestige estate agency Sotheby’s International Realty, who is selling 2801/1 Peak Ave in Main Beach’s Park Lane Apartments for $5.75m, said until a few weeks ago the penthouse market had been “pretty dry”, but market activity was ramping up and older buildings were keeping pace with new builds.
“They are two different markets,” he said. “Those who appreciate a building that has stood the test of time and has a known body corporate are a different demographic from those who want to buy something brand new and are willing to pay a premium for it.”
Mr Mana said the prices that could be achieved depended on individual apartment blocks but was often difficult to predict.
“It’s all about demand. Most penthouses don’t transact that often and when they do, the seller is usually a local who hasn’t moved for a long time. You can go on past sales but because the buildings all have a different feel, it’s difficult to know what price level is right,” he said.
A good example is 94/22 Montgomery Ave, Main Beach, which had not been on the market for 20 years. The penthouse was a holiday escape for Minnie Smorgon, 93, and her late husband Sam. The Smorgon family is one of the richest in Australia.
The property passed in at auction, but Mr Longmore, who is handling the sale, said negotiations with potential buyers were continuing.
Mr Mana predicts there will be a rise in penthouse transactions this year.
“Those who bought at the height of the market before the GFC have been waiting a decade for a market cycle where they feel they can sell and make a profit or break even on something they’ve held for many years,” he said.
“Once one penthouse achieves phenomenal results it starts a domino effect. It’s all down to confidence.”