I talk to plenty of prospective buyers who associate Potts Point with classic art deco apartments.
While these are some of the most popular options for both buyers and renters, there’s another possibility for the Potts Point buyer who wants it all: the penthouse apartment.
Here’s a look at how these properties go against market trends.
What buyers want in a penthouse
We know that water views can have a huge impact on the price of a Sydney property. This is just one of the many reasons penthouses are so popular, and Potts Point penthouses are no exception. Take the sub-penthouse I recently sold in Kings Cross Road as just one example – views of the water, bridge and CBD sent the price soaring above $3.5 million.
But while views are definitely a huge factor influencing penthouse buyers, they’re still popular even if they don’t offer those glimpses of the water. I also meet buyers who are fixed on the idea of a Penthouse simply because they offer so much extra space along with the convenience of extras like dedicated car parking.
These buyers are also focused on the quality of the building they’re buying into. Think of the iconic ‘Parisian-style’ buildings along Macleay Street like the classic Pomeroy, Dorchester and Villard, along with the converted Rex building – a modern contrast to these art deco classics.
Penthouses don’t play by apartment rules
CoreLogic figures from the past three years show an intriguing pattern for property prices in Potts Point. In 2015, house prices started a steady increase that has continued into this year, going from a median price of $3 million to almost $5 million. But when it comes to units, median prices have remained completely steady at just under the $1 million mark since mid-2014.
The reason for this is simple: supply. The Potts Point house market is incredibly tightly held, while the unit market moves much more freely. But that extra market movement and the sub-$1 million price tag simply doesn’t hold true for penthouses. In fact, most of the penthouse sales we’ve seen recently have gone from anywhere between $30,000-$45,000 per square metre.
The impact of downsizers
Both new development penthouses and the coveted art deco originals are selling to people looking to downsize and find that luxury lock-up-and-leave apartment. This is significant because downsizers are often those buyers with more real money to spend. They’re not relying on huge mortgages to break into the property market but making the most of a previous sale – often the old family home in an outer suburb – to finally afford a place in the inner city.
Whether you’re looking for a penthouse, sub-penthouse or simply an apartment with incredible views of the harbour and city skyline, Potts Point should definitely be at the top of your list.
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