Source: Spence & Lyda.

One Barangaroo Penthouse in Sydney Set To Herald New Era of Super-Prime Apartments in Australia

Sydney dominates Australia’s super-prime property market (sales of more than AU$13 million), with sales more than tripling in the first half of 2021 compared to the same time in 2020.

With demand exceeding supply in the super-prime sector, developers are looking to innovate the ‘penthouse’ concept, with Crown Residences at One Barangaroo offering a new approach to ultra-luxury living.

Crown Residences at One Barangaroo Sydney. Source: Tom Roe

“Traditionally, Sydney’s prime apartment towers have been uniform in configuration with the penthouse being the pinnacle apartment within the complex,” Knight Frank Australia Partner Erin van Tuil said.

However, Mr van Tuil said this is likely to change into the future.

“One Barangaroo is the home to the Australian-first super-prime Crown Residences, which have broken the mould of the traditional penthouse, by creating all residences equally in ‘penthouse quality,'” he said.

“As Sydney’s prime market matures over the next decade, it’s likely we’ll see more super-prime projects where the distinction between being located at the very top of the tower, to lower floors, becomes less, with perhaps the only exception being your preference on views.”

According to recent data by Knight Frank, penthouses fetch a 35 per cent price premium per square metre on average when compared to other new flats in the same complex, and are on average 129 per cent bigger.

Paradoxically, the larger the space differential, the smaller the price premium for penthouses,” Mr van Tuil said.

“In Sydney, the price premium for penthouses is 22% compared to a size differential of 182%, even more pronounced than the global average of a 35% price premium and a 129% size differential.

“This size differential demonstrates how large Sydney apartments are when compared to other global cities and this factor also tends to skew the square metre rate when comparing super-prime apartments in the harbour city.”

The first half of 2021 was the first time Knight Frank was able to include exchanged sales in the super-prime Crown Residences at One Barangaroo in the total residential sales volume since these off-the-plan transactions also settled during this time.

“What we saw in this time was the top five super-prime apartment sales in Sydney average A$39 million, and four of these five apartment sales took place at One Barangaroo – reflecting the demand of our ultra-wealthy population for super-prime luxury homes in the sky,” Mr van Tuil said.

The top five super-prime apartment sales in Sydney in the first half of 2021 averaged A$39 million, with four of these five apartment purchases taking place at One Barangaroo, indicating the desire for super-prime luxury residences in the sky among the ultra-wealthy population.

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