Melbourne's prestige property market continues to show resilience, defying broader economic trends and downturns in the real estate sector.
According to the latest CoreLogic Home Value Index, Melbourne led the decline among Australia's capital cities, recording a -0.9% fall in values over the past three months. This was alongside smaller declines in Hobart (-0.8%) and Darwin (-0.3%). Despite these figures, the upper echelon of Melbourne's residential market continues to show strength.
For the week ending 11 August, clearance rates for capital cities were:
- Sydney — 61.2%
- Melbourne — 62.3%
- Brisbane — 65.3%
- Nationally — 63.5%
However, these numbers don't seem to dampen the enthusiasm for high-end properties in Melbourne.
Despite the limited number of transactions above $20 million, which is not uncommon in the high-end market, there has been strong sales activity in the $10 to $20 million range. This indicates that while there may be fewer ultra-high-end transactions, the market remains active and robust in the lower high-end segment.
Notable Sales Reflecting Market Strength
2 Hopetoun Road Toorak – This property recently sold for $21 million. Designed by the late Wayne Gillespie for the former ANZ CEO Mike Smith, the property was purchased in late 2016 by a member of the Schiavello family for $12m after a sale at $15m to an overseas buyer fell through. Good buying has contributed to a tidy $9m increase in 8 years.
37 Mary Street Hawthorn - A two-storey Italianate Victorian property in the Racecourse Estate near Glenferrie Oval. Sitting on approximately half an acre, this exclusive property exceeded expectations by achieving an impressive $18.2 million.
Even vacant land is commanding top dollar, as seen with the recent purchase of a 907-square-meter lot at 11 Linlithgow Road, Toorak, by local developer Reno Camilleri for $9 million. The potential for development into a single luxury dwelling has made this land a lucrative investment.
Luxury Apartments See Record Sales
In addition to traditional homes, the prestige apartment market, which has historically seen limited activity, is now seeing several sales of over $5m. Recent sales include;
- 306/150 Clarendon St, East Melbourne: Sold for $7 million
- 232/350 St Kilda Rd, The domain building on the city fringe sold for $7.65 million
- 1011/280 Albert St, East Melbourne: A 520 sqm penthouse achieved $11.5 million
- 3701/100 Lorimer ST, Docklands: Reached $9.2 million.
Despite the broader market’s statistics and fluctuations, rising interest rates, increased land tax, and various economic challenges, Melbourne’s prestige property values and costs seem to defy the overall trend.