Category: Investment

Sydney’s trophy home market may soon rewrite the record books, with the harbourfront estate Wingadal in Point Piper quietly tipped to be seeking well over $200 million.

If achieved, it would eclipse the nation’s highest residential sales to date, which include the $130 million paid for Uig Lodge by Atlassian co-founder Scott Farquhar and Kim Jackson.

Industry analysts say that ultra-prestige buyers – often technology entrepreneurs and international investors – are driving the market higher, particularly in rare harbourfront pockets. Limited supply of such estates means prices are now pushing beyond levels once thought impossible.

Businesswoman and philanthropist Imelda Roche and her family have expanded their Palm Beach footprint with the purchase of a neighbouring home for $16 million, adding to an earlier $21 million acquisition nearby.

Together, the properties form a $37 million estate on more than 3,000 square metres of land in one of Sydney’s most tightly held coastal enclaves.

The Roches, best known for founding Nutrimetics, now control a significant slice of the Palm Beach headland. Their move underlines the growing appeal of large compounds that offer privacy, ocean views, and room for extended family living.

A harbour-view apartment once owned by the Bartter family has sold for $12 million, setting a new benchmark for Cremorne.

The luxury residence, which offers more than 250 square metres of internal space and panoramic views across Mosman Bay, was bought ahead of auction. The family had purchased the apartment in 2019 for $8.5 million after downsizing from a Mosman mansion.

The $12 million sale highlights strong demand for large, high-end apartments among Sydney downsizers who want convenience but are not prepared to compromise on scale or outlook.

Entrepreneur Peter Freedman, best known for founding Rode Microphones, has placed one of Sydney’s landmark heritage homes on the market. The Jenner House estate in Potts Point, built in the 19th century, is expected to achieve a price upwards of $50 million.

The grand residence features six bedrooms, expansive gardens, parking for multiple cars, and retains much of its historic detail. Freedman had previously sought approval for a major renovation, but instead chose to put the property up for sale as part of a wider reshuffle of his real estate holdings.

Heritage homes of this calibre are rare in Sydney’s inner east, and prestige agents say they tend to attract both local high-net-worth buyers and offshore interest.

The co-founders of online fashion brand White Fox, Georgia Moore and Daniel Contos, have been assembling one of the largest private real estate collections in Sydney’s Vaucluse. Over recent years, the pair have purchased several multimillion-dollar houses in the suburb, spending about $127 million in total.

Their latest buy, a five-bedroom home with sweeping harbour views, reportedly cost close to $30 million. It joins earlier acquisitions including a $25 million block, a $34.5 million estate, and two more high-end properties worth $38 million and $26 million respectively.

By building such a cluster of luxury homes, Moore and Contos are creating what looks less like a single home purchase and more like a long-term footprint in one of Australia’s most expensive suburbs.

Agents say the move reflects a wider trend among ultra-wealthy buyers who prefer consolidating in a few “blue-chip” suburbs, where supply is limited and demand for harbourfront property rarely wanes.

First-time property investors are increasingly targeting homes with secondary dwellings, such as granny flats or self-contained studios, to boost rental returns and offset higher mortgage costs.

In suburbs across Western Sydney, South-East Queensland and parts of Perth, dual-occupancy properties are selling at a premium as investors look for flexible income streams. These setups allow buyers to live in one dwelling while renting the other, or to lease both for stronger cash flow.

Real estate agents say rising interest rates have made yield a bigger focus for entry-level investors.

Ray White’s Jessica Lam said demand for dual-occupancy stock had grown sharply.
“A house with a granny flat can deliver two rental incomes, which makes servicing the loan much easier, especially in today’s higher-rate environment,” she said.

Some state governments have relaxed planning rules to encourage secondary dwellings, further fuelling supply. For tenants, such arrangements can provide more affordable rental options in areas where vacancy rates remain near record lows.

Property advisors caution, however, that location and design remain critical to long-term performance. Well-planned dual-occupancy homes with separate entries and functional layouts tend to attract higher rents and better capital growth.

Industrial property has become the standout performer in Australia’s commercial sector, as strong demand for logistics and warehouse space continues to outpace the struggling office market.

Vacancy rates in Sydney’s west and Melbourne’s outer suburbs are at record lows, driving rents higher and attracting both domestic and international capital. In contrast, CBD office towers are grappling with double-digit vacancy rates as hybrid work patterns reduce demand for traditional space.

Recent deals include major acquisitions of distribution hubs by global investment groups, underscoring confidence in the long-term e-commerce trend.

JLL’s head of industrial research, Michael Hart, said the asset class was outperforming expectations.
“Industrial rents are growing at double-digit rates annually in some precincts, something we haven’t seen in decades. Investors are shifting out of office and retail into logistics because the fundamentals are so strong,” he said.

Analysts say industrial property will remain a key focus for superannuation funds and institutional investors seeking resilience against economic uncertainty.

Pandemic-era demand for regional homes has cooled, with new data showing rental yields in many coastal and inland towns are now easing after three years of rapid growth.

Markets such as Byron Bay, Geelong and the Sunshine Coast, which experienced strong price gains during 2020–2022, are now seeing softer conditions as more workers return to offices in capital cities. Rising interest rates have also weighed on investors, many of whom chased regional properties during the COVID-19 “escape from the city” trend.

CoreLogic figures show rental yields in several regional hotspots have flattened or declined slightly in the past 12 months. At the same time, price growth has moderated, limiting capital gains for investors who bought in at the peak.

Property analyst Angie Zigomanis said investors were rebalancing.
“During COVID, regional markets looked very attractive because they were affordable and delivering strong rental growth. Now, affordability has deteriorated, rates are higher, and the lifestyle drawcard has softened,” he said.

Agents note that while regional towns continue to attract demand from retirees and sea-changers, investor activity is shifting back to metropolitan markets where infrastructure, jobs and population growth are stronger.

The build-to-rent sector is rapidly expanding across Australia as governments and institutional investors push for new solutions to the housing crisis.

In Melbourne’s Docklands, Sydney Olympic Park and Brisbane’s inner suburbs, large-scale projects offering long-term rental apartments are beginning to reshape the housing landscape. Unlike traditional developments, build-to-rent properties are retained by developers or funds, who lease them directly to tenants rather than selling them off individually.

Government incentives, including land tax concessions and fast-tracked planning approvals in Victoria and New South Wales, have given the sector a boost. Industry estimates suggest more than 40,000 build-to-rent apartments are in the pipeline nationwide.

CBRE analyst Tom Caldwell said the model appealed to super funds and offshore investors seeking stable income streams.
“With rental demand at record highs, these projects provide institutional investors with reliable returns while adding to Australia’s housing stock,” he said.

Tenants, meanwhile, benefit from longer leases, on-site management and shared amenities. Critics argue, however, that rents in some projects are still priced at the premium end of the market, limiting their impact on affordability.

A weaker Australian dollar is helping draw overseas buyers back into the nation’s real estate market, with agents in Sydney and Melbourne reporting renewed interest from offshore investors.

While foreign investment rules remain strict — requiring approval from the Foreign Investment Review Board (FIRB) and limiting buyers largely to new properties — industry insiders say the currency shift has made Australian property comparatively more affordable to cashed-up international buyers.

Prestige agent reports suggest that Chinese, Singaporean and Hong Kong investors are showing fresh interest in luxury apartments and trophy homes. Commercial buyers are also eyeing CBD office assets, particularly distressed sales offering discounts compared with pre-pandemic valuations.

Property economist Sarah Liu said the dollar’s weakness made Australia attractive for international capital.
“When the Australian dollar is at or below US65 cents, it can effectively make property here 20 to 30 per cent cheaper for offshore buyers compared to recent years,” she explained.

While the numbers remain far below the pre-2017 peak, when Chinese buyers dominated inner-city off-the-plan sales, the trend could provide a modest boost to segments of the market where demand has cooled.