Not enough mansions and penthouses in Melbourne for wealthiest buyers

Melbourne real estate has hit peak season, but the lucky few in the market for a mansion aren’t spoiled by rich pickings.

The volume of properties in the ultra luxury bracket of $10 million to $20 million is not meeting the current level of demand.

Off-market transactions, from Portsea to South Yarra – unadvertised and done on the quiet – are increasingly more common, leaving the list of trophy estates and deluxe apartments publicly for sale a little more depleted that usual.

But wealthy prospective buyers, for whom budget is not an issue, are happy to wait for the ideal triple-A address to become available.

Of Melbourne’s exclusive – and limited – $15 million-plus listings are 433 Glenferrie Road in Malvern, with eight bedrooms and a three storey void containing palm trees; the Eureka Tower penthouse, a sprawling home in the sky dubbed E82; and a lavish, five-bedroom waterfront penthouse at 85 Rouse Street, Port Melbourne.

Kay & Burton managing director Michael Gibson said there was a slight deficit between listed prestige homes, at the upper-most end, and the buyer pool.

With a number of buyers seeking a top-tier property, Gibson recently placed a “wanted” ad, which he had not needed to do for several years.

“There has been good activity at the luxury end of the market for the last two years in particular, and that continues. At the moment there is very healthy competition for anything that comes on the market,” Gibson said.

“There is certainly a big demand for luxury penthouse apartments in and around the Toorak village, which are in short supply.

“I ran a wanted ad last Saturday because I have three very, very strong buyers for luxury apartments in and around the Toorak area, and there is just nothing there that fits the requirements.

“So I am just trying to glean some interest from somebody to say, ‘if the dollar is right, we are prepared to consider selling our apartment’.

“I have also got an offshore client who wants 4000 to 5000 square metres in Toorak, and those landmark properties don’t come along everyday. It will be a generational change for somebody, in terms of those significant properties.”

Gibson was the marketing agent for the historic South Yarra mansion Wavendon, which is no longer for sale.

The gothic-style Walsh Street manor is considered one of the best and most expensive properties in Melbourne, and fit the bill for buyers seeking a landmark estate.

Abercromby’s agent Sam Goddard, who recently listed a $5.25 million-plus trophy home at 1 Maxwell Court in Toorak, has clients looking in the $10 million to $15 million range, but the properties are not available.

However, he expects a boost in time for buyers who want to settle in for the new year.

“There are people that have been looking for north of two years, and the market in that time, even since January, has jumped,” Goddard said.

“There is definitely demand for quality, high-level product in a triple-A location. A lot of properties are being floated off-market.

“This is a traditionally a good time for selling, as people want resolution for the new year – they want that next phase of life sorted – so there will be an influx of quality properties.”

Morrell and Koren buyers advocate David Morrell said clients came to him with a wish list of a trophy home with pool and tennis court.

“I say, ‘join the queue’,” he said.

“You could go and knock on one of the billionaire’s doors in Melbourne and offer them $10 million more than their home is worth, and they would just laugh.”

Morrell said some willing vendors are doing direct deals with their buyer, off-market.

“Melbourne is a small community at the top end,” he said.

“We have a two-speed market – the end and the bottom end don’t run at the same pace. At the top end, it has been steady as she goes. We are seeing a change in the market dynamic.”