Melbourne prestige property market going ‘gangbusters’
Celebrity chef Shannon Bennett’s lavish five-bedroom home at 43 Lansell Road, Toorak, is one of a number of prestige homes that have sold in recent weeks.
Melbourne’s prestige property market is going “gangbusters” as the city recovers from its long COVID-19 lockdown.
And cashed-up local buyers are believed to be leading the charge with a helping hand from foreign investors.
Mal James, of James Buyer’s Advocates, said a spate of multimillion-dollar sales in recent weeks showed the doomsayers and pessimists were wrong when they predicted property prices would crash as a result of the pandemic.
43 Lansell Road, Toorak, was listed with a $21m-$23m price guide.
Melbourne’s real estate market was strong, he said, from prestige homes to suburban family pads.
But blue-chip suburbs such as those in Boroondara, with its elite private schools, were leading the way in the market’s recovery.
Foreign buyers were snapping up homes in elite school zones, he said, and Melbourne’s low crime rate, political stability and recovering economy made it a more attractive place to live compared to overseas capital cities hit harder by the pandemic.
While he stressed foreign buyers weren’t the only ones buying Melbourne’s luxury property, he said overseas cash injections had helped spark the market’s comeback.
“I think the strongest market at the moment is the $2m-$6m range, that is absolutely going gangbusters,” Mr James said.
Juice queen Janine Allis sold her 9 Whernside Avenue, Toorak, residence after advertising it for between $20m-$22m.
“All through last year we were saying we don’t believe what the Commonwealth Bank is saying, we don’t believe what the other banks are saying. They were predicting 30 per cent drops in house prices and we were saying we expected it to rise, which it did.
“There’s money coming from overseas as well as locally and that is strengthening the market.”
Marshall White Stonnington director Marcus Chiminello said the market was strong, but he didn’t think foreign investment had played a role.
Australian buyers were snapping up luxury properties as soon as they hit the market and he said three of his sales in recent weeks showed there was strong local demand for prestige homes.
“We always knew the demand was there but the supply wasn’t,” Mr Chiminello said.
“It also reflects that the buyers for these prestige homes have been waiting patiently for these kinds of homes.”
Mr Chiminello said he sold three premier Toorak properties each worth about $20m in recent weeks.
20 St George’s Road, Toorak, also recently sold within the $20m price range.
He added his agency had handled 12 of the 14 big-ticket sales in Toorak in recent years, of which he said just two involved foreign buyers.
The “big question on everybody’s lips”, he said, was if foreign investment would make the market accelerate even further once international borders finally reopened.