'The demand is there': The rise and rise of penthouse living

The penthouse has long been a status symbol of wealth for the rich along with those who prefer to sign a non-disclosure agreement at the time of purchase to keep their identity under wraps, but the top level position is now attracting a new demographic keen to share their experience.

New romantic couples aged in their 50s, those in their late 60s looking for one-level living style – and, yes, some cashed-up millennials with money to splurge – all want to experience luxury.   

But forget the stereotype of the top-floor bachelor pad – because the penthouse is being pitched to everyone and hardly the home of a high-rolling bloke ready to party around the clock. 

According to Marshall White’s Leonard Teplin, who has been selling penthouse apartments for 15 years, the appeal of the penthouse hasn’t changed over the years, but the location certainly sways the demographic keen on moving in.

“The penthouse has always been the pinnacle of any building,” says Teplin. 

“It’s the most attractive spot and you’ll only ever find one or two on the top floor. You are guaranteed more privacy because nobody is around you, and you get the best view,” he says.

Teplin recently sold a $4 million penthouse to a single female in Brighton, while those between 60 and 65 years of age, who no longer have kids at home, want to treat themselves to a luxury lifestyle, too.

“Buyers typically [want to] live within a three-kilometre radius of where they’re living in a home, and want to try something different,” says Teplin.

The penthouse apartment is low maintenance compared to a home, and according to Teplin, those buying up in the CBD and inner-city suburbs usually have a holiday home down the coast, interstate or overseas as well.

Retired oil and gas businessman Paul Schliker moved into his spacious two-bedroom South Yarra penthouse in November 2020 with his partner who works as a doctor. The couple swapped living a converted brewery in Collingwood for a luxurious top floor life with more than a view. “It was definitely a lifestyle choice to make the switch, but at this stage in our lives we wanted something different, central and close to transport with lots of security,” says Schliker. 

Situated on the 21st floor of 4248 Claremont Street in South Yarra, the couple spent $1.5 million on their penthouse.  

Co-Lab Residential’s Daniel Cashen says penthouses selling between $1.5 and $3 million are popular choices for families and couples. 

“This demographic wants a single level home and scale. They might have a home that’s 50 squares with a pool and tennis court, so when they downsize to a penthouse, they want an amazing open-plan living, a second living space and terrace, large bedrooms and bathrooms. A 300 to 400-square-metre one will usually fetch $6 million,” says Cashen of the medium end of the market.

Fashion importer Harry Batra, who migrated to Australia from India in 2000 and moved into a family home in Templestowe, wanted to live closer to the city when he made the switch. In  2009, he purchased a shell penthouse in Rouse Street, Port Melbourne and worked with an architect to turn it into his luxury family home [he had two children living there until recently].

“It took three years to find the right penthouse,” says Batra. “It’s definitely the lifestyle we wanted. I came from a busy city in Dehli and being in the suburbs was too quiet. It’s also more expensive to live in a house and we wanted to be closer to the city,” he says.  

His dream penthouse is 450 square metres with four bedrooms, four bathrooms and four walk-in wardrobes, a large entertainment area including a bar with 360-degree views of the bay and city. 

Last August, Cashen sold a penthouse at the ultra-slick The Muse on St Kilda Road for more than $20 million dollars. While he can’t tell us who purchased it, he says the spend came from a local business person. 

“The demographic purchasing ultra-premium penthouses in Melbourne are those who come from ultra-high net worth, and have enough assets to spend on an apartment,“ he says. 

“They’re primarily locals residents that still want something spectacular and spacious and will probably live in [it] for three months of the year given they probably have homes in the Swiss Alps or Port Douglas,” says Cashen.

He also dispels the myth that the penthouse suite is only reserved for gentlemen.

“The penthouse buyer is more like to be your traditional family, a local business person who has become successful, than the party boy. That really is the minority,” says Cashen.

According to Nelson Alexander’s Charlie Barham, the scarcity of penthouses on the market reflects their popularity. A penthouse appeals to those wanting to downsize from their regular home, still want an inner-city connection to be closer to amenities rates highly. 

“You’ll usually find most decent-sized penthouses close to the CBD, but their scarcity is certainly a sign that the demand is there. We’re also finding those who live remotely want a penthouse to come to – something that’s top quality with a lock up and leave aspect.”