The high end of Melbourne’s prestige property market surged during the pandemic-induced property boom of 2020-early 2022 and while the markets across the board have cooled as the cost-of-living crisis strikes, some of Australia’s richest continued to splash out on record-breaking multi-million-dollar property sales throughout the past 12 months.
The surge in property prices wasn’t just restricted to houses in the high-end property market, units also sold in huge volumes to reach record highs too.
The number one spot for 2022 went to 29-31 St Georges Road, Toorak, which had the highest price paid for a home in Victoria, and third highest property sale in Australia…ever… at $88 million.
The French Renaissance-style mansion on a 7113-square-metre block was bought for $5 million in 1991, by a 26-year-old cryptocurrency casino founder.
Domain reported in 2017 that 29-31 St Georges Road was an “unfinished mansion” with 19 bedrooms, collecting cobwebs – a “ghost house” on a grand boulevard.
In close second place was “Blair House” at 17 St George’s Road, Toorak, an expansive solid brick Georgian Revival residence set on 7,800 sqm of botanic parklands in Toorak’s premier boulevard which sold for $74.5 million in August last year.
The 10-bedroom, 7-bathroom home sold far higher than the price benchmark of $52.5 million.
The cryptocurrency casino founder also snapped up 802 Orrong Avenue earlier in the year, making it the third most expensive Melbourne property thanks to its $38.5 million sale price.
Meanwhile, a handful of apartments in STH BNK by Beluah sold for a whopping sum.
The building’s sub-penthouse sold for $35 million with reports that apartment 1 and apartment 2 also sold for $30 million each.
In fact, the wealthy Victorian suburb of Toorak featured on the ‘top 10’ list 6 times.
Although this is hardly surprising given Toorak takes the crown as Victoria’s most exclusive and affluent suburb with a median house price of around $5 million.
Toorak is located about 5km southeast of the CBD and has a range of luxury properties on offer.
Properties in Armadale, Red Hill South and Flinders also made the top 10.
Top 10 most expensive Melbourne properties sold in 2022
|№||Street||Suburb||Sale price||Sold Date|
|1||29-31 St Georges Road||Toorak||$88M||August 2022|
|2||17 St Georges Road||Toorak||$74.5M||August 2022|
|3||802 Orrong Ave||Toorak||$38.5M||February 2022|
|4||Sub penthouse, Level 80+/60 Southbank Boulevard||Southbank||$35M||August 2022|
|5||52 Hampden Road||Armadale||$26.51M||June 2022|
|6||61 St Georges Road||Toorak||$26.01M||July 2022|
|7||29 Callanans Road||Red Hill South||$26M||March 2022|
|8||44-46 Hopetoun Road||Toorak||$23.39M||August 2022|
|9||261 Musk Creek Road||Flinders||$23.38||October 2022|
|10||21 Douglas Street||Toorak||$23.25M||May 2022|
What is driving record prices in Melbourne’s high-end property market?
Melbourne’s high-end property market benefited from strong demand over the 2021-22 financial year, and that has continued to date with seven- and eight-figure properties selling both on- and off-market every day.
It is thinly traded – why would you sell your trophy home if you didn’t need to?
And while demand has definitely decreased from the heady days of last year, A-grade properties will always be sought after by buyers.
PropTrack economist Cameron Kusher predicts premium property would continue to steam along, despite Melbourne’s property price growth slowing.
“Prestige markets were seeing very strong demand and many record prices were achieved,” Kusher said.
“These markets will continue to be popular and continue to see very high-priced sales but we do expect some price falls and reduced sales of premium properties as interest rates rise rapidly over the coming year.”
Ray White senior economist Nerida Conisbee agrees that the outlook for luxury property Australia-wide remains positive despite the general slowdown in the market.
“The most popular luxury suburbs are short on land and as a result, it’s going to continue to be difficult to secure a home within them,” she said.
And despite inflation woes, there are still a lot of people making a lot of money who will be looking to buy beautiful properties.
Domain data shows 61 properties sold for $10 million or more in 2022 – this compares to 694 in Sydney, 14 in Brisbane, and 11 in Perth.
A final note
While these top 10 highest property sales make interesting reading, they aren’t necessarily the suburbs I would recommend investing in.
At Metropole, we always advise on the importance of investment-grade properties and locations, rather than chasing a hotspot or growth area.
That’s areas and properties which hold their value over the long term, rather than benefit from an uptick in demand.
But even before looking for the right location, make sure you have a Strategic Property Plan to steer you through the upcoming challenging times our property markets will encounter.
Because aside from remembering that you should focus your efforts on investment-grade properties and locations, you also need to remember that property investing is a process, not an event.
That means that things have to be done in the right order – and selecting the location and the right property in that location comes right at the end of the process.
And that’s because what makes a great investment property for me, is not likely to be the same as what would suit your investment needs.