Another $18 million penthouse in Sydney's CBD

A local buyer has offered around $18 million for a penthouse at Shanghai United's luxury apartment project, Castle Residences ahead of its launch this Saturday.

It is understood the buyer has offered to pay more than $60,000 a square metre for the 300 sqm penthouse.

Its price will almost mirror AMP Capital's recent Circular Quay Loftus Lane penthouse sale at $67,000 a square metre in June.

Shanghai United has more than 100 buyers have registered to buy the first 80 luxury apartments at Castle Residences project, including 21 Melbourne private buyers who flew up to Sydney on Monday to personally register for the apartments after seeing an advertisement for the apartments in a Chinese newspaper.

CBRE is marketing the project.

"Interests have exceeded our expectations," Shanghai United chief executive Yangdong Xu said.

"Potential buyers have said the combination of a five-star hotel in a mixed-use apartment project in a good location was key."

The $380 million project at 110-118 Bathurst and 203 Castlereagh Streets is a mixed-use tower incorporating the 121-room Porter House Hotel, MGallery by Sofitel and 131 apartments known as Castle Residence Apartments.

The hotel, by Accorhotels will be on levels one to nine and the apartments will be located above it.

One of the Melbourne buyers, Raymond Wang, said the inclusion of the hotel in an apartment tower especially in a top location like Sydney CBD would raise its value.

"In Melbourne there are so many apartments but Sydney's supply shortage and stable rents are more attractive to an investor," he told Shanghai United.

Shanghai United, which is backed by 10 mainland developers, has gone from strength to strength since arriving on the Australian property scene just over a year ago.

Its latest acquisition is Sydney Double Bay's Intercontinental Hotel for $140 million.