Why some Sydney trophy homes sell in weeks and others sit on the market for years

Surging property values and a run of strong auction clearance rates are proving a boon to most home sellers but not all, with some high-end homes languishing on the market for years.

Properties in Sydney’s prestige, $3 million-plus market take an average of 117 days to sell, but in some cases real estate has been on offer to buyers for the past decade, long before the last property boom had even started.

And it is no coincidence that the more expensive the property, the longer it takes to sell.

“The higher the value of a property, the more finite the buyer pool,” said Ken Jacobs, of Christie’s International. “And price is not the only contributing factor. The more unique the property, the more targeted and nuanced the search for a buyer becomes … rather than a traditional mass market approach.”

There are always exceptions, however, as exemplified by Mr Jacobs’ sale of the Fairfax family’s two beachfront estates in Point Piper. The first to sell was the Elaine estate, which was on the market for three years before Atlassian co-founder Scott Farquhar bought it for $71 million in 2017.

The following year fellow Atlassian co-founder Mike Cannon-Brookes snapped up the Fairwater estate next door for $100 million less than two weeks after it was announced to the market.

One of the longest ongoing sales campaigns is the Marara estate in Avalon, owned by Mortgage Choice co-founder Peter Higgins. It was first touted to the market a decade ago with hopes of $40 million, and later discounted to $30 million and then to $26 million in 2017.

When a price change still didn’t sell it, Mr Higgins had a rethink on the campaign. He subdivided the 12,685-square-metre property into 11 separate lots with DA-approval for a Mark Hurcum-designed residence on each block.

Mr Higgins plans to retain two lots, but LJ Hooker Avalon’s Claudio Marcolongo says the remaining nine have already drawn interest from 200 buyers ahead of a relaunch after Easter with expectations of totalling $37 million to $40 million worth of sales – matching the price expectations of 2010.

In Bellevue Hill, the landmark Mediterranean-style mansion Alcooringa owned by medico Louis Klein and his wife Claire was listed in 2015 for $25 million, and almost five years later remains for sale for $28 million.

“People who own these top houses are usually not driven by any need to sell, but by a lifestyle choice and they are willing to wait for their price even if that takes a long time,” said Michael Pallier, of Sotheby’s International. “But they all sell eventually.”

The Point Piper residence Akuna owned by big band performer Warren Daly and his author wife Karen hit the market in April 2017 with $48 million hopes. Mr Pallier said he has received offers close to that level, but three years later the residence remains for sale.

The colonial mansion Tresco on the Elizabeth Bay waterfront was listed in spring 2017 with $50 million expectations, and despite Janette Waterhouse and her estranged husband David Waterhouse already moving on – and recently buying the Rose Bay Spanish Mission residence Villa Biscaya after five years on the market – the Elizabeth Bay house remains for sale two and half years later.

Yachtie Matt Allen is a comparative newcomer to the market given he listed his Darling Point trophy home for $70 million two years ago with a handful of agents offering it to buyers. It last traded in 2013 for $32 million after an almost two-year sales campaign that started in 2011 with $50 million hopes.

Tech entrepreneur Simon Clausen listed his Pittwater weekender in Clareville in 2016 with hopes of topping the suburb’s $12 million high following his move to Switzerland. Listing agent Jonathan De Brennan is still waiting for a buyer.

On Sydney’s outskirts the Galston estate of Arena International Aviation chairman Chunming Li has been for sale for five years, despite the nine-bedroom mansion boasting a tennis court, swimming pool and guest cottage.

Having purchased it in 2011 for $3.25 million, it was listed in 2015 for more than $5 million, and McGrath’s Elise Lau is offering it to buyers for $4.8 million.

Adjusting the price definitely does help, as long as you still respect the inherent value of the home and don’t fire-sale it, says James Dunn, of Richardson & Wrench Double Bay, whose office sold the Watsons Bay waterfront house long owned by Hong Kong press baron Ching-kwan Ma.

The Ma house was on the market for five years with a $20 million guide before it was dropped to $17.5 million last year, and sold a few weeks later for $16.8 million to nextdoor neighbours coal miner Chris Ellis and Sydney Angels investor Sandrina Postorino.