Record Prices - New Vs Old

Seaforth has a new record sales price for 2024 after 41 Battle Boulevard sold last week for $15,700,000. It is a 1000m2 home on 1600m2 of waterfront land. It comes completely renovated with 6 bedrooms, a jetty and 2 boat berths. This is great news and shows that the prestige market is still very strong.

As we have reported all year there is a large disconnect between the premium sale prices of renovated / new properties compared to older or unrenovated dwellings which are discounted. One of the main reasons is that the cost of building through labour shortages and materials shortages has almost doubled since 2020 and COVID, so if you want something new you have to pay for it. 

Many buyers investigate renovating and decide with the time it takes and the costs now to renovate it is easier and quicker to pay the premium and buy something new. A great example of the price difference is the sale of 11 Seaforth Crescent in September just 150 meters down the street from 41 Battle Boulevard. An old cottage in need of knocking down on a massive 2000m2 waterfront block with a boat shed. It sold for a discount I feel at $5,700,000. The $10,000,000 price difference between the two reflects the potential holding costs to have DA plans approved, the effort and the build cost of a new luxury dwelling. Yes it is a huge amount and a lot of the difference is the cost to build, however it also reflects the cost of time and effort plus a profit margin for that work. We are seeing this in all price ranges, so if you are prepared to renovate there are some great opportunities around.