An avid Sydney Swans fan, Knight Frank’s Richard Sholl has worked exclusively in the prestige residential market for the last five years. He is a CBD specialist that provides expert service in all things residential for high net-worth individuals seeking to market and sell their city residences. 

Richard has been able to represent his clients and deliver results well north of $20 million per transaction for CBD assets.

WILLIAMS MEDIA spoke to Richard about the conditions within the luxury market in 2020.

You work with a diverse range of assets across NSW, what are your predictions for the 2020 luxury market in Sydney and country NSW?

We expect that the first half of the year is going to continue to yield strong results for the most part as there is a distinct lack of stock available. Campaigns that we have run this year publicly have netted a very discerning yet eager group of buyers, especially around the CBD. 

What advice do you give to vendors for the best outcome?

Price the property competitively and realistically (based on up to date data), present the property immaculately and market the property aggressively as well as tactically.

What advice do you give buyers?

Ensure that you are ready to purchase so that you can execute a strong buying strategy early within campaigns. Quite often if an agent has correctly educated their client, they are ready to hear qualified offers come in the earliest parts of any campaign.

What are vendors saying?

Vendors, largely are very happy, the market has taken some by shock after a relatively tricky market in the tail end of 2019. The results in the opening quarter of 2020 have been met with great appreciation by most vendors.

What are buyers saying - what are they looking for?

In the CBD, buyers are gravitating towards newer stock as there hasn’t been a great deal delivered in the last 12 months and outstanding stock is due to be delivered towards the end of 2020 and early 2021. 

The results achieved in the off-the-plan sale sector of the residential market have had an enormous impact if you can clearly demonstrate to buyers how good the value of resale stock has become comparatively.

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Source: Knight Frank Prestige   Apt 1501/2 Phillip Street 'Quay Apartments' recently sold by Richard Sholl and Adam Ross

Are the buyers changing?

Most certainly, the age of the CBD being only a playground for investors is gone. Demographically, there is a cosmic shift taking place towards new buyers that were previously viewed as being loyal to their chosen area and were more of the mindset “you’re taking me out of here in a box” when speaking about their long-term homes. They are evolving to become some of the best buyers in the CBD market.

Where do you see demand coming from?

We are now seeing Sydney-based buyers from the Lower North Shore as well as the Eastern Suburbs making plays at larger CBD apartments. The same can be said for expats looking to take advantage of the very favourable exchange rates presently. 

Previously there was a perception that people would trade their family home and trade down from a capital value perspective into an apartment of a lower value, whereas now buyers are married to the idea that for quality apartments with excellent amenity and views, there is a commensurate price tag attached.

Are your clients downsizing/upsizing?

Much like the capital investment, buyers are looking for a redistribution of space rather than smaller spaces particularly, this is a movement of “rightsizing” rather than sizing downwards or upwards.

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