A buyer walked into a Coogee showroom and walked out with a $20 million apartment

A chance walk past a construction site in Coogee has revealed a striking shift at the very top of Sydney's property market.

Earlier this year, a buyer wandered into a display suite and purchased a penthouse at Ballamac on the spot for around $20 million, no prolonged negotiations, no drawn-out decision-making.

It's a moment that perfectly captures the growing divide in Sydney's prestige apartment market: while mid-tier luxury buyers are hesitating, the ultra-wealthy are moving faster than ever.

Apartments in the $3 million to $5 million range are beginning to show signs of cooling, as interest rate uncertainty and borrowing constraints weigh on buyers.

These purchasers are typically high-income professionals reliant on finance and increasingly constrained by serviceability limits. By contrast, penthouse buyers are operating in a different league. Agents say they are more likely to be ultra-high-net-worth individuals, cashed up downsizers or global investors purchasing with cash, making them far less sensitive to interest rate movements.

The result is a two-speed market. "In effect, the middle is being squeezed, while the very top continues to accelerate," one agent said.The resilience at the top end is backed by strong global data.

According to Knight Frank, Sydney recorded 100 residential sales above US$10 million in 2024, totalling US$1.586 billion.

A further 17 super-prime deals have already been recorded in the first quarter of 2025, with the average transaction sitting at US$15.9 million.

With demand concentrated at the very top, developers are increasingly designing projects around penthouses as "hero" residences often using them to anchor pricing and drive early sales.

Eterno Property Group's Halcyon project in Bondi is a case in point. The boutique development of just eight homes is crowned by a 300sqm full-floor penthouse expected to fetch about $26 million, with panoramic views stretching from Bondi to Bronte.

Designed by MHNDU with interiors by Richards Stanisich, the residence features expansive indoor-outdoor living, three bedrooms and high-end material finishes inspired by the coastal landscape. The strategy is already proving effective. At Eterno's Ode development in Double Bay, penthouses were among the first residences to sell, with the largest achieving a suburb record of $25 million.

Competition for elite buyers is also intensifying. At AURA by Aqualand in North Sydney, two penthouses priced at $21 million and $15 million are being marketed with a $500,000 Porsche 911 Carrera included as a buyer incentive. It's a sign that even in the ultra-prime segment, developers are finding new ways to differentiate and capture attention.

The trend is spreading beyond traditional prestige enclaves, with Coronation Property introducing penthouses for the first time at its Ashbury Terraces project in the inner west Sydney suburb of Ashbury.Brad Caldwell-Eyles, managing director of 1st City Real Estate Group, said penthouses are increasingly operating as a standalone market. "Penthouses are in a category of their own. They're scarce, they're exceptional, and they appeal to a buyer who's typically paying cash and looking for a one-of-a-kind property," he said.

"That combination of limited supply and a buyer less impacted by interest rates means they continue to outperform the broader market." Penthouses are also becoming the ultimate expression of a project's vision for architects and designers.

At Halcyon, MHNDU Principal Liam Hancock said the design intentionally connects the top-floor residence back to its natural surroundings, despite its elevated position.

"Although the penthouse sits on the top floor, it isn't isolated from the natural environment below," he said. "The scale of the site allowed us to give every resident - including those at the very top - direct connection to expansive green space and a sense of sanctuary. Whether it's the lush gardens that wrap the building or the coastal breezes moving through the architecture, there's a real feeling of being grounded in nature," he said.

Kirsten Stanisich of Richards Stanisich explained that every material, texture and proportion within the penthouse was chosen to reflect the surrounding landscape and create a sense of quiet luxury. "The penthouse is the ultimate expression of Halcyon's quiet luxury," she said.

"The curved stone mosaic in the ensuite, hand-worked timber and tumbled natural stone echo the sculpted cliffs and weathered textures of Bondi and Tamarama, creating a tactile, elegant environment that feels timeless rather than trend-driven."