22 Oct 2022 | 4 mins

Sydney's North Shore Trophy Home Market Is Exploding - Sydney Morning Herald

Sydney's North Shore Trophy Home Market Is Exploding - Sydney Morning Herald

Despite broader market influences such as interest rates, the trophy home market appears to be bulletproof.

When Tesla chair Robyn Denholm bought an apartment on Cremorne Point this week for $27.5 million, it forced locals and even seasoned agents to take stock.

"It just goes to show the trophy home market is bulletproof," said Mosman veteran agent Kingsley Yates. "It shows the gap between the mainstream property market and the trophy one is widening."

Yates isn't just referring to this week's bullish sale result and the fact it is the state's highest apartment sale outside the CBD's luxury tower market.

Forbes

Tesla chair Robyn Denholm has set an apartment record north of the Harbour Bridge at $27.5 million

It is just the latest of 20 suburbs across the north shore, from Palm Beach to Warrawee and Kirribilli and Epping in the north-west where records have been smashed this year.

But as Denholm was taking the keys to her new seven-bedroom penthouse this week, CoreLogic figures were released to show that in the five months to the end of September, Sydney's median house price fell 9.7 per cent and apartments dropped 5.5 per cent.

That discrepancy just proves that the trophy home market doesn't move in response to broader market influences like interest rates, said Forbes Global Properties' Ken Jacobs, who sold Denholm her $27.5 million digs.

"The trophy market responds to supply. So if the right home becomes available, it will set the market," Jacobs said. "The market doesn't set the price."

The six consecutive interest rate rises in as many months by the Reserve Bank of Australia are unlikely to affect high-end values because so many of the top deals across the upper north shore were in cash, DiJones' Tim Fraser said.

Fraser should know. He set records for Warrawee at $16 million, Wahroonga at $14.5 million and Turramurra at $11.2 million.