“Maybe the gap is narrowing and it’s coming from younger money entering the market, but it’s also coming from a more decentralized idea of what makes a top suburb,” said prestige appraiser Paul Donovan of Pontons.
Sir. Donovan cites the recent sale of a $ 23.388 million home to Bronte Beach as an example.
Tamarama’s house record has also hit the trophy market with sales of $ 25 million, and a block by the sea with five apartments was sold for $ 29.2 million.
“The eastern beach market is among the most aggressive at the moment,” said McGrath’s William Manning. “The rules book on prices per square meter has been thrown out, and it is largely run by a much younger demographic who has made huge amounts of money and does not want to live in traditional blue chip neighborhoods.”
Mosman was close to securing a sale of nearly $ 40 million this year when investment banker Steve Bellotti’s Iluka Road residence was built alongside Atlas’ Michael Coombs.
Coombs confirms he had half a dozen deals worth more than $ 35 million, but the property was never sold because Mr Bellotti decided he wanted to keep the house. “It was not a shortage of buyers, it was the seller who did not want to sell,” Coombs said.
Mosman agent Kingsley Yates, of The Agency, said Mosman is on the verge of closing the hole with a $ 30 million sale – “once there is one, there will be two more within a few months” – but he can not see the difference in price from one side of the harbor to the other narrowing more than that.
“There are houses worth $ 40 million and $ 50 million in Mosman, but only a handful,” said Mr. Yates. “It’s nothing compared to the many estates in Bellevue Hill and Vaucluse, and all the mansions on the Point Piper and Darling Point waterfront.”
The price difference from one side of the port to the other is not lost on the buyers. Coombs said before the pandemic that he would be lucky if 10 percent of his buyers came from the eastern suburbs, but that had risen to 25 percent.
Buying agent Deb West from SydneySlice said her customers searched in both markets given the difference in value. “People looking at $ 25-30 million in Bellevue Hill are able to buy a similar house in Mosman for $ 15-20 million,” she said.
Sir. However, Donovan warns that the filling in values in areas of deviating prestige is also a sign of where we are at the top of the property cycle. “When the market corrects, it will be felt in these areas more than in blue chip suburbs like Point Piper,” he said.