Million-dollar slide on Melbourne’s top properties


MILLIONS of dollars are being shaved off Melbourne’s most exclusive homes’ price tags as they languish on the property market.

High-end property real estate agent Kay & Burton has re-listed Melbourne’s most expensive mansion, 1 Towers Rd, Toorak, after it was launched on the elite property market more than a year ago.

It is still hoped the six-bedroom home once owned by businessman John Elliott will set a new Victorian record. It was originally listed at $30 million.

But Kay & Burton managing director Michael Gibson said the vendor now hoped for a sale “in the high 20s”.

“It (2011) was a difficult trading year. We’ve had four sales this year in excess of $10 million, and those numbers are probably down on previous years,” Mr Gibson said.

“In the last month things seem to have improved.”

Next door, at 3 Towers Rd, the leafy mansion – complete with home theatre, gym and swimming pool – also has been re-listed after spending more than a year off the market.

Agent Ross Savath said the owner would consider offers of more than $20 million.

Jonathan Dixon, managing director of bayside realtor JP Dixon, said he’d never seen so few buyers in the market.

“This is the first time I’ve seen it as skinny as it is at the moment. People are just sitting on their hands waiting to see what’s going to happen,” Mr Dixon said.

He said the Brighton property at 12 Moule Ave had had $5 million sliced off the price tag after being on the market six months.

Mr Dixon and Mr Gibson said Chinese investors were filling the void left by local home hunters.

Buyers advocate Greville Pabst said when consumer confidence waned there was less demand for prestige properties, which often led to a drop in values.

Similarly in Australia’s other major housing markets, luxury homes have had their prices slashed.

In Queensland, a nine-bedroom home originally listed for $14 million was passed in at auction for $7.3 million this month.

Meanwhile, the prices of some of Sydney’s most luxurious homes have also tumbled.


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