Sydney's high-end apartments offer a ray of hope to prestige market

As prestige agents battle buyer reticence and limited listing levels this spring, there is at least a measure of good news to come from the high-end apartment market, thanks to Sydney’s well-heeled downsizers.

Fuelling a handful of recent big-ticket sales in quick succession is the demographics of an ageing and cashed-up generation of downsizers in the eastern suburbs and a finite supply of quality apartments in the right locations, says Brad Caldwell-Eyles, of 1st City Double Bay.

Sales data in the $5 million-plus prestige market shows apartments over the past five years spend an average of 13 per cent less time on the market than high-end houses, Domain research analyst Eliza Owen says.

That should not be news to fund manager Michael Hill, who this week sold the Elizabeth Bay apartment he bought in 2014 for $12.5 million from a company linked to corporate heavyweight David Gonski.

Hill, who heads up Blue Sky Capital Management investment advisory, listed it one month ago amid hopes it would reclaim the apartment’s previous $14 million sale price of 2006 when sold by Bloch Ballet dancewear co-owner David Wilkenfeld to chairman of software company Netfira Hal Herron.

Sources say the apartment sold for about $13.5 million, but that was unconfirmed by Clint Ballard, who sold it with his Ballard Property colleague Paul Ephron.

“There’s a real appetite for those few well-positioned, luxury apartments, and as long as they are priced right they are being really well received by buyers,” said Mr Ballard.

It comes just days after construction industry boss Andrew Daoud sold his apartment, True North, in the Sydney Wharf for about $10 million, almost double the $5.3 million he paid for it in 2006.

Rob Alfeldi, of CBRE Residential, also declined to reveal the exact sale price, but said there was a build-up of buyers for the quality stock and buyers were more likely to sit on their hands down the price chain.

James Bergmuller, chairman of Preston Motors Group, sold his Kings Cross penthouse in The Elan for $8.5 million through Adam Regan, of Our Estates. The three-bedder last traded 20 years ago for $3.6 million.

Art dealer Steve Nasteski bought a waterfront apartment in Darling Point’s Santina building last month for $7.5 million from former model Marie Spies, widow of funeral services businessman Ian Spies.

In June bespoke menswear maker Nigel Lincoln and partner Glenn Carter sold their Darling Point apartment in the President Towers building for $5.25 million to antique enthusiast Lilian Rollason, wife of retired lawyer John Rollason.

Anywhere Travel boss Barbara Whitten and her husband, lawyer Ray Whitten, bought the Point Piper home of Citi’s Pan-Asia head of cash sales Angus Richardson and his wife Martha thanks to a pre-auction offer of $7.6 million.

It’s a similar story in Mosman, where Sally Doherty, who co-founded investment firm CP2 with her late husband Peter, has bought a Balmoral Slopes apartment for $8.75 million through LJ Hooker Avnu’s Michael Coombs, topping the block’s $7.7 million sale earlier this year to Barbara Ell, former wife of billionaire Bob Ell.

But pricing is key, says Oliver Stillman, of Knight Frank, who is selling the penthouse in the Horizon building with Adam Ross.

Having launched the five-bedroom spread in February for $20 million, Stillman said the vendors had revised their sights and were now asking $16.5 million ahead of an October 19 auction.