Why the internal trophy market is bulletproof

Despite broader market influences such as interest rates, the domestic trophy market appears to be bulletproof.

When Tesla President Robyn Denholm bought an apartment in Cremorne Point this week for $27.5 million, it forced residents and even seasoned agents to take stock.

“It just goes to show that the domestic trophy market is bulletproof,” said veteran Mosman agent Kingsley Yates. “It shows that the gap between the mainstream real estate market and the trophy is widening.”

Yates isn’t just referring to the bullish result of this week’s sale and the fact that it’s the highest apartment sale in the state outside of the CBD luxury tower market.

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Tesla President Robyn Denholm has set an apartment record north of Harbor Bridge at $27.5 million. (Domain)

It is just the latest of 20 North Shore suburbs, from Palm Beach to Warrawee and Kirribilli and Epping in the North West where records have been broken this year.

But as Denholm took the keys to his new seven-bedroom penthouse this week, figures from CoreLogic were released to show that in the five months to the end of September the median property price in Sydney fell by 9.7% and apartments 5.5%.

The spread simply proves the domestic trophy market isn’t moving in response to broader market influences like interest rates, said Ken Jacobs of Forbes Global Properties, which sold its $27.5 million dig to Denholm. of dollars.

“The trophy market reacts to supply. So if the right house becomes available, that will determine the market,” Jacobs said. “The market does not set the price.”

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The six consecutive interest rate hikes in as many months by the Reserve Bank of Australia are unlikely to affect high-end stocks because many of the top deals on the high north coast were in cash, Tim said. Fraser of DiJones.

Fraser should know. He set records for Warrawee at $16 million, Wahroonga at $14.5 million and Turramurra at $11.2 million.

Data shows that 20 North Shore suburban records were set in 2022 from January to October.
Data shows that 20 North Shore suburban records were set in 2022 from January to October. (Domain)

Prestige agents have uniformly blamed a shortage of high-end homes for sale for the string of bullish results, but that’s only part of the equation, according to Richard Simeon, who set a record for homes and properties. ‘apartments for Mosman this year of 33 million dollars and 14.1 million dollars respectively.

The other part is the number of buyers, Simeon said. “The media is so focused on the broader market declines, but at the high end we’ve never seen so many buyers with that kind of budget,” he said.

“Tech and pharma buyers, in particular, have made more money during COVID than they have made the rest of their lives.”

North Beaches won seven suburban records, including Palm Beach at $27.5 million from the purchase of billionaire Wisetech Richard White, and Freshwater at $14.2 million for the home sold by the co-founder of F45 Adam Gilchrist last month.

A luxury mansion in Sydney's Palm Beach broke the northern beaches record in June when it sold for $27.5 million.
The northern beaches have won seven suburban records, including Palm Beach. (PriceFinder)

Cherie Humel of Clarke & Humel said for many homeowners, the closures during COVID have made them feel like their own four walls are getting closer to them.

With high discretionary income and no trips to spend it, they set about making plans for a new home “almost without giving up.”

Half of the suburban highs were set by properties that sold without marketing and were instead offered to high-end buyers privately.

“The off-market is busier than ever,” said Michael Coombs of Atlas, whose Northbridge sold $25 million for the home of Link chairman Michael Carapiet in two weeks before he could arrive on the market.

Off-market sales in nearby Castlecrag followed at $23.5m for the waterfront home of Transurban chief executive Scott Charlton and $22.2m for the Neerim Park Estate at Castle Cove sold by Chinese superstars Tong Liya and director Chen Sicheng.

This article was originally published in age.