Multimillion-dollar off-the-plan apartment sales reported, with cashed-up downsizers out in force

Multimillion-dollar sales are continuing across the top end of the apartment market despite the COVID-19 pandemic. Wealthy Baby Boomers are snapping up the majority of expensive residences while they can, with agents and developers forecasting a shortage of off-the-plan apartments.

In Sydney, a luxury apartment at The Landmark in St Leonards was sold for between $3.45 million and $3.7 million this week. Two more apartments in the same price range will change hands in the coming week.

It comes as an apartment at Otto Cremorne, in the affluent lower north shore, was purchased for more than $3 million.

A bundle of upmarket sales were recorded in Melbourne in the past fortnight including a $3.4 million apartment at Melbourne Square, a $2.695 million apartment at St James Park in Hawthorn and a $2.5 million three-bedder at Atelier Residences in Collingwood.

And in Brisbane, a $1.735 million penthouse at Mirvac’s Ascot Green development contributed to the more than $8.3 million in sales at the community since March.

Colliers director Blake Schulze said cashed-up downsizers had suffered little impact from the coronavirus pandemic when compared to other buyers.

“When you look at Sydney’s eastern suburbs, most of these people have generally quite a high disposable income and some strong savings there, and may not even require finance on their purchase,” he said.

“High unemployment rates aren’t impacting them as much. On the reverse of that, the first-home buyer market is getting hit hard.”

These sentiments were backed by CBRE agent Andrew Leoncelli, who sold the three-bedroom apartment at Melbourne Square for $3.4 million and another three-bedroom property at Oakwood in Kew for $2.2 million.

“They were both to local owner-occupiers who had been looking for a long time,” he said. “They are not price-sensitive and are very firm in their wants and wish list, so they buy once they see what they like or need.”

While sales are currently going strong in the top-end market, some predict a lack of supply that will eventually push prices up.

Developers getting cold feet amid the coronavirus outbreak will exacerbate this problem in the off-the-plan sector, predicts Melbourne agent Leonard Teplin at Marshall White.

“Some of them can’t get funding and some of them can’t get their projects off the ground, so there’s just going to be less property,” he said.

“A lot of bigger developers have put their projects on ice because they are uncertain, which means there’s very little to choose from.”

At the four towers that make up the Queens Wharf Brisbane, more than 500 residences have been sold since the resort launched at the start of the year. The project by Destination Brisbane Consortium is backed by the Star Entertainment Group, developers Far East Consortium and Hong Kong-based Chow Tai Fook.

And at Ascot Green, in Brisbane’s north-east, seven sales notched up since March have come in at an average of $1.186 million.

The project is part of Brisbane Racing Club’s $1.2 billion masterplan redevelopment of Eagle Farm and, as well as luxury apartments, also includes commercial offices and dining.