In May last year, Knight Frank, which is selling the apartments, revealed that a quarter of the 82 high-end luxury unitss had been sold to a mix of overseas-based and Australian investors.
The apartments have a starting price of $9.5 million and there are suggestions the penthouse is worth about $100 million.
According to CoreLogic-Moody’s March Hedonic Home Value Index, apartment values are set to decline at a slower pace than house prices, “down 5.9 per cent in 2019, followed by a slow recovery in 2020”.
The report says the correction in the housing market will be two-paced across house and apartment values.
“Apartment supply tends to outstrip house supply in Sydney. A high level of supply has now come on line for apartments in the inner city and surrounding areas as well as for dwellings in suburban areas via land releases and removal of some development restrictions,” the report says.
“This contributes to the forecast slowdown continuing through most of 2019 in these areas.”
Luana Kenny national director of residential development m3property said: “Oversupply of apartments and weakening investor demand off the back of reduced finance resulting from the Hayne royal commission will continue to impact the residential market over 2019. Return to growth and improved market conditions are expected from mid – 2020 onwards.”
The Crown residences will be part of the $2.2 billion Crown Resort which also includes a casino and what is the world’s first “6-star rated” hotel.
Erin van Tuil from Knight Frank said: “While we cannot disclose sales figures, I can tell you that interest to date has been strong. Crown Residences at One Barangaroo has received a very warm welcome from both Australian and offshore purchasers alike since sales commenced. The driving force behind the ongoing interest is a combination of the lifestyle offering, as well as the design and location.”
“Crown Sydney, One Barangaroo, and the Crown Residences at One Barangaroo within, are on a steady course to meet completion in the first half of 2021.”
According to the Knight Frank 2019 wealth report, ultra-high-net-worth individuals dedicate a large portion of their wealth to property.
Knight Frank’s head of residential research, Australia Michelle Ciesielski, said locally, UHNWIs are projected to rise by 20 per cent over the next five years, equating to an extra 600 ultra-wealthy people living in Australia, in comparison with 12 per cent growth over the past five years.
Carolyn Cummins is Commercial Property Editor for The Sydney Morning Herald.