Luxury off-the-plan penthouse in Melbourne’s Kew smashes sales record

A downsizing family has paid close to $6.5 million for a luxury off-the-plan penthouse in Melbourne’s Kew, setting an apartment sales record for the suburb and the affluent City of Boroondara.

The multimillion-dollar sale proves there is still fight left in the nation’s property market as it wrestles with the impacts of the coronavirus pandemic.

The sale of three-bedroom Fenwick Street pad, which has a four-car garage, rooftop plunge pool and wine vault, eclipses the suburb’s previous record of $4.95 million, which was paid for a penthouse at The Alexandra on the corner of Cotham Road and Gellibrand Street in 2017.

Three parties made private bids for the penthouse, part of the Rondure House development, before it was sold in early April.

AJ Batra, managing director at developer Above Zero, said the exact amount of the sale was confidential. But the buyers were a local family, who made a range of customisations to the floor plan, including the addition of a teppanyaki grill.

Batra said the level of interest during the pandemic was somewhat unexpected.

“I was surprised we had three buyers that were so keen on it, that’s probably the biggest surprise that we had,” he said. 

“When we envisioned the project we always knew we were going to set a record in terms of the penthouse, but doing it in the COVID environment raises a few more eyebrows than it would normally.”

Construction of the whole-floor penthouse is set to be completed by 2021.

However, its title of Kew’s most expensive apartment may be short-lived with another penthouse on the market for $9.95 million. The two-level apartment, which is already built at The Alexandra complex, is located opposite the Alexandra Gardens and has a pool, wine room and marble staircase.

In Sydney, more than $8 million in sales have been notched up at the Gentry Alexandria development during the past month. Luke Berry, co-founder of developer Thirdi Group, said an ongoing negotiation for a $2.2 million townhouse may ratchet up the total to more than $10 million.

“When you combine all the DNA of our product, it’s really attractive to the most active person in the market right now and that’s the cashed-up downsizer who is looking to exit a $3 million to $4 million home,” he said.

“They want to leave a bit of money in the back pocket, but they still want to live in luxury in a beautiful home with all the bells and whistles.

“That’s why I think we’re doing well.”

In Brisbane, a buyer parted with more than $3 million for a sub-penthouse at 160 Macquarie, a collection of 34 three-bedroom apartments in St Lucia. The 246-square-metre, three-bedroom sub-penthouse faces the Brisbane River and has city views.

Glenn Rix, development manager at developer QM Properties, said the development launched in March despite the beginning of COVID-19 lockdowns.

“It wasn’t the best timing in the world, but there’s always good take-up of the right product, in the right place, at the right price, so I think what we’ve achieved is testament to that,” he said.

“I think if COVID hadn’t come along, we would have had a very good story to tell in terms of number of deals and conversions. But considering the environment and current restraints, I’m comfortable with where we’re at.”