High hopes — Local Paddo

When a house in Paddington or Woollahra sells for its asking price, usually nobody bats an eyelid. But when the asking price is upwards of $15 million, some may sit up and take notice.

Such was the case last November when 17-21 Rush St, Woollahra, hit the market with a $17 million price tag. Just a few days after the property was listed, a sold sign was splashed across the sale board and a notice went up on the online listing noting that the house had sold. For $17 million.

Admittedly, 17-21 Rush St was an extraordinary property, a collection of three terraces that had been amalgamated to make one monster triple-fronted residence.

“A state-of-the-art masterpiece 20 years in the making,” trumpeted the real estate marketing. “This breathtaking oasis showcases artisanal handcrafted finishes in a warm Mediterranean palette, instantly transporting you to Italy. Conceived by master architect Renato D'Ettorre, the luxurious interiors are designed to evolve with the light.”

The property had two car spaces and a tiny plunge pool but only three bedrooms. The lucky buyer remains a mystery.

While agents will tell you that Woollahra addresses always achieve a premium over Paddington addresses, it remains true that both suburbs have boomed during the past two years. But how high will Paddington prices go? Will they reach the seemingly incredible peak of $20 million?

“If you are asking if Paddington will have a $20 million house, it already has them,” says Bresic Whitney Paddington specialist Maclay Longhurst. “Paddington already has 10 houses, at least, that would be worth $20 million. They just haven’t come on to the market yet.”

Pauline Goodyer, of Paddington-based Goodyer Real Estate, agrees.

“We’re seeing a lot of money around the beaches, where you can pay $25 million for a house in Tamarama, and Woollahra has gone through that phase too,” Goodyer says. “We saw $17 million in Rush St. There are a few key streets in Paddington — Windsor St, Brown St, Glenmore Rd — where the prices could get up there.”

They are already climbing. In September, a record was set for a Paddington house when Sydney Airport boss Geoff Culbert and his wife Emma Ward sold their roomy 175 Underwood St terrace to Canva CFO Damien Singh for $12 million.

The previous suburb record was reportedly for the sale of the converted multi-level ex-Windsor Castle hotel on Windsor St, which is said to have traded for $11.85 million in 2016.

But the market has leapt considerably since then, and agents say that old hotel — with its 770sqm of internal living space, 250sqm of gardens, including a pool, and five-car underground garage complete with a turning circle — would be one of the local properties now in the $20 million category.

“Typically what determines those sort of prices in this area is the size of the house and the renovation,” says Longhurst. “Once you get to a certain size, scarcity becomes an issue. Because these properties are so rare, people pay such big prices for them because they want to live in the suburb.”

Longhurst says Paddington trophy homes need to have “a few fundamentals in place” to achieve maximum prices, including being north-facing at the rear, having multiple car spaces and an incredible renovation.

“To reach $20 million, you’d have to have the right size and the right renovation,” he says.

Goodyer agrees that parking is essential and that size and location are other indicators of a property’s desirability.

“At the upper level, houses need that north aspect, a good size, parking and a garden, and for it to be all done,” she says.

Both agents agree that the upper end of the Paddington market continues to perform strongly as auction rates at the lower end of the spectrum stabilise.

“Anywhere from $4 million or $5 million onwards is still very active,” Goodyer says. “But in general, Paddington is holding well in a changing market.”

Longhurst agrees the upper end of the market continues to perform, with several strong sales in the area in recent months in the $6 million to $11 million bracket. These include his sales at 11-13 Roylston St, which sold for $10.75 million to Pet Barn founder Jeff David; 23 Elizabeth St, which went for $9 million off market during last year’s lockdown; 120A Windsor which sold last month for $9.5m; and 410 Moore Park Rd, which set a street record at $8 million.

Nearby, two other interesting sales have sparked conversation. A big corner house at 2 Paddington St was sold off market for about $10 million, with the new owners also buying the adjoining house on Hopetoun St for $5 million, making the combined property a $15 million package.

Longhurst says the suburb is dotted with real estate gems, from the oversized factory conversion at 108-110 Hargrave St — once owned by tech billionaire Mike Cannon-Brookes, and sold by him in 2015 for $10.5 million — to properties on Underwood St, Paddington St and in private pockets around the neighbourhood.

He notes that high-net worth individuals are always keen to unearth large and intriguing properties.

“Typically, people who buy $20 million houses, it’s not their only house,” Longhurst says. “They might have another one in Bowral and another one in Palm Beach, for starters.”

Oh, to be so lucky.

BIG SALES

2 Paddington St, Paddington, $10m

11-13 Roylston St, Paddington, $10.75m

23 Elizabeth St, Paddington, $9m

410 Moore Park Rd, Paddington, $8m

175 Underwood St, Paddington, $12m

120A Windsor St, Paddington, $9.5m

150 Windsor St, Paddington, $9.2m

11 Stephen St, Paddington, $8m

17-21 Rush St, Woollahra, $17m

115 Jersey Rd, Woollahra, $14.5m

Braelin, 40-46 Lang Rd, Centennial Park, $20m

Lactura, 20 Lang Rd, Centennial Park, $20.5m