Munro Donen

That particular property was guiding 4.2 and within a quick few days disappeared at well over 20% on the guide price.

Another home, for example, one of our clients owned a property in Vaucluse and asked me to get a valuation done about a year ago.

They were overseas.

It's a 900 square meter block, an older 1980s style home with beautiful harbor views.

That particular property we had valued at $9 million in 2021 and it sold for $11 million this July and within a few days.

So interesting examples to see the strength of this particular market segment.

Craig, it's an interesting question.

I've had a chat with a couple of builders.

I actually bought a property yesterday for a client, a brand new build.

And typically what you're seeing is that the cost of steel in the last year has gone up about 47%.

The supply chains are affected, as we know.

It's difficult to get supplies and there's labour shortages.

So the cost of doing a renovation that would have probably cost a cosmetic renovation, cost about $80,000 to $100,000 a year ago, is probably costing you 50% more today.

I believe that will settle down as soon as the supply chains, you know, stabilise again.

What I am seeing with clients is they're not that motivated to buy something that needs a lot of work, obviously because of these costs.

And there are people prepared to pay a premium for something that's beautifully done and of a very high standard.

Craig, I would say the biggest difference depends on locations.

If we're looking at the bayside suburbs and the beach locations such as Coogee and Bondi that you mentioned before, where houses can trade well northwards of $8 million, her first home buyers and investors can still get smaller apartments in these areas in the $1 to $2 million range in the beach suburbs.

While the luxury higher end apartments with amazing views, obviously in areas like Darling Point, would trade in the mid three million to round about 10 million.

And similar for the ocean suburbs like Bondi and Coogee.