Demand is surging at the high end of the Potts Point and Elizabeth Bay property markets, with properties priced at $4 million and upwards seeing strong interest.
Luxury units, both old and new, along with renovated terraces, are proving popular with well-to-do downsizers and high-flying corporate executives.
There’s no question that Potts Point and Elizabeth Bay are now home to much of Sydney’s most desirable real estate, with both suburbs becoming ever more popular with a well-heeled demographic that can afford its pricier properties, which includes some exquisite penthouses.
If the sweeping harbour views, leafy parks and inner-city location weren’t enough to guarantee this is prime real estate, Potts Point and Elizabeth Bay also offer a cultured, cosmopolitan lifestyle. The streets are buzzing with excellent bars, restaurants, cafes, galleries and boutiques. Add charming art deco architecture and abundant parklands nearby and who wouldn’t want to live here?
The lockout laws effect
The state government’s somewhat controversial lockout laws have certainly been great news for property prices in the area. The laws have tamed Kings Cross’ wilder side, making the once notorious stretch a safer place to be after dark, while still retaining the lifestyle appeal.
Domain Group data showed a 25% boost to the price of units sold in Potts Point in the six months following the introduction of the laws, while in neighbouring Elizabeth Bay prices also jumped 17% in the same time period.
The nightlife is still here but it’s just not the all-night, late-night life. There’s still the restaurants and bars and there’s a still a buzz around the neighbourhood that gives it a Soho lifestyle.
Certainly, Elizabeth Bay, Potts Point and Darlinghurst continue to be a magnet for new bars and restaurants – albeit to hotspots that draw a different crowd to the area than those who previously sought out the strip for its strip clubs and all-hours bars.
Increased developer activity
The area is increasingly being seen as more viable for residential property developers, who are buying up buildings previously used as businesses and restaurants, often to turn them into luxury apartments. Meanwhile, the old-world heritage charm of the art deco buildings remains, as does the neighbourhood’s proximity to the harbour and CDB.
Sales in the high-end price bracket were strong throughout 2017 and have remained so moving into 2018. A few highlights:
7/38 Macleay Street – $8.9M, a record rate per square meter. This whole floor sub-penthouse, featuring sweeping views in both directions, is in a modern architect designed building. The incredible result demonstrated that unique luxury properties are popular with downsizers and can command a premium price.
21/10 Wylde Street – $7.8M. One of only two luxurious penthouse apartments in one of Potts Point’s most sought-after buildings, created by well-known architects SJB, with renovated interiors by Arnoldlane. The result was one of the highest per square meter rates of 2017 sales in the area.
9 & 10/2 Billyard Avenue – These two waterfront units, located in the historic Cavendish Hall art deco block, sold together for a total of $5.5 million. The buyer’s aim was to combine the units together into one larger property, reflecting the high demand for penthouse style apartments in the area.
1201/81 Macleay Street – This apartment in the iconic Ikon building sold for $5M, a significant jump over its selling price of $3.2M just 18 months prior; yet more evidence of how much capital growth the area has experienced.