Sydney's Toaster testing trophy sky mansion market given $130,000 annual strata levies - How much should the down to earth pay?
Sydney's ultimate trophy apartment offering has now been officially listed for sale by the Maloney hotelier family.
It comes with the Michael Suttor-design and then Michael Love-decor fitout of the 715 square metre space - and $30 million plus hopes through LJ Hooker Double Bay agent Bill Malouf, inconjunction with Sydney Sotheby's International estate agent Michael Pallier.
Oh...and a $130,000 annual strata levy.
But the $130,000 strata levy is not Sydney's highest.
Top of the list, that I am aware of, is the $12.5 million penthouse atop The Hyde, the Stockland residential tower in Liverpool Street overlooking Hyde Park.
The two-storey penthouse has strata fees of $142,000 a year which was a real drag on buyer interest when offered initially with $20 million plus hopes through Christie's International agent Ken Jacobs.
With 570 sqaure metres of internal space and 312 square metres of external space, the four-bedroom penthouse (with a rooftop terrace, 15-metre lap pool and extensive harbour views) was sold in 2010 by Marie Bolton, whose fortune was made through marketing electronic whiteboards.
The two-storey residence set a benchmark for luxury in the city occupying levels 34 and 35 of The Hyde wiith interiors designed by Archer + Wright.
In Elizabeth Bay, the former chairman of the Future Fund, David Gonski had a lowrise harbourfront penthouse - the one with a putting green which was quietly sold last month through Ballard Property Group's Clint Ballard, inconjunction with Michael Pallier of Sotheby's International.
It last traded when bought for $12 million from former Deutsche banker Hal Herron in 2012.
The levies in the luxurious small development on Billyard Avenue - with a harbour-front pool, and almost 24 hours of the concierge - are high for all seven units. But I gather the penthouse strata levy sits at $130,000. It was around $80,000 a year in levies back in 2000.
But penthouses don't have to have enormous fees.
Potts Point's latest offering is the penthouse of the publican Chris Crawley (pictured below) after receivers PPB Advisory took possession.
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Crawley developed The Georgian on Macleay Street in 2010, retaining the three-bedroom 680 square metre triplex penthouse with pool. Jason Boon and Andrew Hodgett of Richardson and Wrench Elizabeth Bay has been telling inspectees it's likely to fetch somewhere between $10 million and $11 million. It's annual strata levy is just short of $20,000.
The Maloney whole 11th floor amalgamation in Sydney's 1 Macquarie Street Bennelong complex had been tipped last month to be offered given the desired downsizing by the vendors, the Maloney family.
Levies are dearer for all residents where there is 24-hour concierge-security. Then add multiple lifts, swimming pool, gym, sauna, steam room and spa.
It's certainly an emerging issue as by 2030, it is estimated that about half the population of Sydney will be living in strata homes.
Strata buyers must be wary of new developments especially with off the plan strata estimates.
There are rough rule of thumb estimates on levies on an apartment as levies are worked out according to a unit's entitlement, which set according to NSW law at the time the building is built. Initially tied closely to the potential value of each apartment.
Levies in building without luxury services should be around 0.5% of the value of the apartment.
More prestige blocks will have annual levies that could easily exceed 1% of the value of the apartment.
With the median Sydney price of $550,000 that would $2,750 be about a year,
A $1 million apartment would set you back between $10,000 a year.
Levies should equate to the value of the apartment - reflecting the size, position and aspect along with the level of service.
Older buildings possibly need higher maintenance as most buildings need to be painted every seven to 10 years, carpets replaced between 10 and 15 years, and the life span of elevators and cooling systems is 20 to 30 years.
The difficulty of finding prestige buyers for apartments with high annual strata fees is perhaps one of the reasons why there has been a recent shift in thinking by developers on what to do with the upper level space.
They are increasingly giving up the penthouse space in favour of rooftops with communal facilities for all the building’s residents.
Moatly pools, but also cinemas, even dining rooms. Gyms ofcourse, barbecues and spas are being installed on rooftops, instead of another prestige apartment or two.
Developers concluding that in some cases communal facilities can make commercial sense by increasing their returns.
Legacy Property and Alceon Group’s Montrose project in North Sydney will include a rooftop deck and cinema.
The Rise tower at Parramatta will offer residents barbecue facilities.
In Brisbane’s Bowen Hills, Chrome Properties’ Code apartment development, completed in 2011, includes a rooftop deck, with city views, which allows residents to hold big private events that their small apartments may not be able to accommodate at the Cottee Parker-designed development.
At Hamton’s three-stage riverside project at Victoria Street, Abbottsford, the three buildings – Eden, Haven and Sanctuary – have unique rooftop facilities.
At Eden, residents can access spas, barbecues and a movie room.
Sanctuary features a garden cinema.
Haven includes an outdoor lounge and plots where residents can grow vegetables.
Chris Hayton, of architects behind the project, ROTHELOWMAN, has indicated the practice has included libraries, and even bowling greens in rooftop communal spaces.
