By Herron Todd White
The prestige market within metropolitan Adelaide has a typical starting price point of $3 million, hitting a ceiling at $4.5 million. The market above $4.5 million is thinly traded with only a handful of transactions occurring per annum. Properties in the prestige market typically have blue ribbon addresses, above average accommodation and specifications of the want, not need, variety. Items in these properties can include passenger lifts, swimming pools, tennis courts, cellars, underfloor heating and home cinemas.
Over the past 12 months, there have been upwards of 45 transactions within metropolitan Adelaide that have achieved prices of above $3 million with a median sale price of $3.6 million and a maximum sale price of $5.68 million achieved by 411 Esplanade, Henley Beach. In the 12 months previous, there were upwards of 32 transactions within metropolitan Adelaide that achieved prices of above $3 million with a median sale price of $3.6 million and maximum sale price of $8 million achieved by 8 Statenborough Street, Leabrook in an agentnegotiated off market transaction. On this raw data, the prestige market has remained relatively stable considering the uncertainty created by the COVID-19 pandemic.
The majority of prestige transactions within the past 12 months have centred within the inner metro area, Adelaide Hills and the metropolitan beachside suburbs west of the CBD. The top five recorded transactions in this period fell within the suburbs of Henley Beach (west of the city), Medindie (north of the city), Mylor (Adelaide Hills) and Unley Park (south of the city).
Of the top five transactions, two were achieved within the beachside suburb of Henley Beach. The sales include 293 Esplanade, Henley Beach ($4,019,950) and 411 Esplanade, Henley Beach ($5.68 million). Both properties comprise heritage homes with unrestricted ocean views; the latter has been fully renovated and includes both a tennis court and swimming pool. The suburb has a current median sale price of $918,000 and is popular with buyers given its proximity to the beach and the ever-popular shopping and dining precinct of Henley Square.
With one of the most prestigious addresses in metropolitan Adelaide, 12 Robe Terrace, Medindie achieved the second highest recorded transaction price of $4.71 million. This property comprises a single level heritage home disposed as five bedrooms and three bathrooms on an allotment of 3,986 square metres. The property has been previously updated however presents in average condition and includes a swimming pool and tennis court. The suburb of Medindie has a median sale price of $1,437,500 and is popular given its proximity to the North Adelaide and estate-like residences
Mylor is an Adelaide Hills suburb located approximately 25 kilometres south-east of the CBD. This suburb has a median sale price of $900,000 and is characterised by hobby farm style properties of varying conditions and sizes. The previous price record in Mylor was set in July 2016 with 844a Strathalbyn Road achieving $3.4 million. This price stood until 762 Strathalbyn Road eclipsed the record by $900,000, achieving a sale price of $4.3 million. This property provides a luxurious fitout in a rural lifestyle location featuring five bedrooms, six bathrooms, wet edge swimming pool and manicured yards, all set on 18.5 hectares.
Unley Park has a median house price of $1.32 million and has been known for consistently producing some of the metropolitan area’s highest sale prices. With a transaction price of $4.23 million, the sale of 12 Whistler Avenue achieved the fourth highest sale price of the past 12 months. Like Robe Terrace, Medindie, Whistler Avenue is one of metropolitan Adelaide’s most prestigious addresses. The property comprises an updated gentleman’s bungalow providing five bedrooms, three bathrooms, tennis court and swimming pool all set on 2176 square metres.
Like a blue moon, transactions above $3 million outside of the blue-ribbon suburbs is rare but not uncommon. The sale of 24 Romalo Avenue, an original estate-style home on 1.24 hectares achieved a sale price of $4 million which is the first sale in Magill to achieve a sale price above $2 million. In addition, 56 Yeronga Avenue, Kensington Park, a renovated heritage home with a swimming pool and tennis court set on 4700 square metres achieved a sale price of $4.2 million. It is interesting to note that this sale price is $50,000 under the price record of $4.25 million this property set in 2013.
The year 2019 saw Adelaide achieve its highest residential transaction of $8 million. This price was considerably above the previous record and looked as if it would be standing for a while. That was until 45 Palmer Place, North Adelaide came to market in early 2020. Known as Bishops Court, this property is currently under contract for an undisclosed amount after being listed for $10 million plus. This is the first time the property has been offered to the market in 160 years and has been the Anglican Archbishop of Adelaide’s residence since construction in 1857. Set on 5218 square metres of land, this seven-bedroom, four-bathroom property includes a chapel, manicured gardens and city and Hills views.
The only possible property to eclipse the sale of 45 Palmer Place, North Adelaide is that of 9 Robe Terrace, Medindie. This property was purchased incomplete in 2013 for $4.885 million. Since this transaction, construction resumed, with the property going to market in October 2018 in an off the plan transaction scenario with an asking price of $12 million plus. The dwellings total upwards of 1488 square metres of living space comprising eight bedrooms and eight bathrooms with a tennis court, spa, swimming pool and pool house, all set on 5,155 square metres of land.
Transaction numbers and price levels within the prestige market have remained stable throughout an extended period of market uncertainty. Through the early COVID-19 period, this market was expected to slow as the willingness of buyers to outlay large quantities of capital was anticipated to wane. A combination of low stock levels, an active buyer pool, cheap money and limited COVID-19 lock down restrictions has seen positivity in this market. All things remaining equal, this positivity is expected to remain throughout the latter stages of 2020.
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