$11m sale breaks Bondi Junction apartment record

The Centennial Collection, the new apartment development on the edge of Centennial Park in Bondi Junction, continues to break local residential property records.

A local Eastern suburbs buyer has splashed $11 million on a three-bedroom, sub-penthouse on level 10 of the development, topping the previous record within the same development.

At 266 sqm, including internal and external space, the north-facing residence achieved more than $55,000 per sqm, making it one of the most expensive apartment transactions ever recorded in Sydney’s eastern suburbs outside the harbourfront enclaves of Double Bay and Darling Point.

The buyer had originally purchased a three-bedroom apartment in The Centennial Collection in 2025 for $6.5 million before deciding to secure the larger half-floor sub-penthouse.

Ray White Projects Director of Sales Marcello Bo, who is managing sales for the project, said the transaction highlighted the continued strength of demand for premium apartments in Sydney’s eastern suburbs.

“This sale is a clear indication of buoyancy in the upper end of the market and reinforces the strong demand and appetite for primely located, larger-sized apartments with all the luxurious inclusions you would expect with a development of this calibre,” Bo said.

“It also demonstrates that superbly-designed, lifestyle-driven residences in tightly held locations continue to outperform, particularly when they deliver scale, privacy, rarity and long-term liveability that aligns with how buyers want to live today.”

The Centennial Collection occupies a prominent gateway site overlooking Centennial Park at the junction of Bondi Junction, Woollahra and Paddington. Following recent State Significant Development approval, the project now comprises 79 apartments across two adjoining towers rising 13 and 16 storeys.

The development has been designed to target owner-occupiers seeking larger-format apartments, with residences featuring inclusions more commonly associated with standalone homes, including private rooftop pools, bedroom fireplaces, wet bars, butler’s pantries and full-sized wine fridges.

The record-setting residence was originally designed as one of the project’s penthouses before the approval process allowed additional levels to be added to the scheme.

Positioned on Level 10, the apartment occupies half a floor and has no common walls. It offers 270-degree views spanning Sydney Harbour, the Harbour Bridge, Opera House, Centennial Park and both the northern and southern headlands.

The purchaser said that proximity to Centennial Park, transport connectivity, and the surrounding lifestyle amenities ultimately drove his decision.

“I’m constantly looking at developments everywhere in the east, from Darling Point to Rushcutters Bay, Double Bay, all the beaches, Bondi, Bronte, Tamarama, Woollahra. I wanted something new,” he said.

“Everywhere you go, there’s a trade-off. It might have a great floor plan, but it doesn’t have a view. Working in the city, your daily commute impacts everything, so Bondi Junction train station was a huge factor in my decision.”

The buyer, an avid cyclist who rides regularly in Centennial Park, said his view of the location changed significantly as he spent more time assessing the eastern suburbs market.

“At first, I thought, who would want to live there? It’s one of the busiest intersections in the eastern suburbs. But when you peel it all back, it’s one of the best locations in Sydney. You’re close to everything, you can walk to everything, the amenity is incredible, and the views are amazing.”

Bondi Junction is slated to look materially different in the coming decades, with a draft 100-page masterplan proposing a regeneration of the suburb which would include thousands more apartments as well as a revitalised commercial, retail, and dining precinct.

For months, I have been one of the few commentators openly stating what the data was already showing: property prices had begun to fall.

The latest figures confirm it. Cotality’s June 1 Home Value Index showed Sydney values down 0.9 per cent in May and Melbourne down 0.8 per cent. ANZ has cut its national capital city forecast to 2.8 per cent growth this year, down from 4.8 per cent in April. CBA has also downgraded its outlook.

So the Federal Budget arrived at the worst possible time, with the wrong prescription, to treat a problem it fundamentally misunderstands.

Treasurer Jim Chalmers has suggested that making it easier for first-home buyers to get a fair crack at auctions is a good thing. The reality is more complicated.

Driving property prices down does not simply hand a discount to first-home buyers. It affects the 1.4 million Australians employed by the property sector, the 67 per cent of household wealth tied to housing, and the state government revenues that fund schools, hospitals and roads.

The government had a choice: tackle supply constraints, link migration growth to housing completions and reduce spending, or increase taxes on property investors. It chose the latter.

Property is an economic pillar

Property is not simply another investment class. It contributes about 10.6 per cent of GDP directly, up to 15 per cent when flow-on effects are included, and employs more than 1.4 million Australians. It also generates more tax revenue than mining and underpins consumer confidence through the wealth effect.

Against that backdrop, the Budget removed negative gearing from established residential properties purchased after Budget night and replaced the 50 per cent capital gains tax discount with cost-base indexation and a 30 per cent minimum tax from July 1, 2027.

The government calls this fairness. I call it a misdiagnosis.

The grandfathering trap

The policy is also internally contradictory.

Properties purchased before Budget night are grandfathered, allowing existing investors to retain full negative gearing and capital gains tax benefits until they sell. The logical response is simple: hold.

That means fewer properties coming onto the market, fewer rental listings and reduced transaction volumes.

The result is likely to be higher rents, reduced stamp duty revenue and further inflationary pressure at a time when the Reserve Bank remains focused on bringing inflation under control.

The government is attempting to fight inflation with one hand while fuelling it with the other.

Who really owns investment properties?

What is often lost in this debate is who Australia’s property investors actually are.

According to ATO data, 71 per cent of investors own just one investment property. They are not wealthy property moguls.

They are teachers, nurses, police officers and small business owners who have purchased an investment property as part of their retirement strategy.

For many Australians, property remains the most tangible and trusted pathway to building long-term wealth.

Removing the incentives that supported that investment does not hurt a billionaire developer. It hurts ordinary Australians trying to secure their financial future.

Investors aren’t the affordability problem

It is true that housing affordability has deteriorated significantly over the past two decades. However, negative gearing is not the primary cause.

Research by economists Ross Kendall and Peter Tulip found planning and zoning restrictions significantly increase housing costs.

Their work showed zoning lifted detached house prices well above marginal construction costs in Sydney, Melbourne, Brisbane and Perth.

Low interest rates, strong population growth, chronic under-supply and restricted access to development-ready land have all played a much larger role in pushing prices higher.

Punishing private investors does nothing to address these structural issues.

The Build-to-Rent advantage

At the same time the government is reducing incentives for Australian investors, it has created a more attractive tax environment for foreign institutional capital through Build-to-Rent projects.

Under current arrangements, foreign institutional investors can access a 15 per cent withholding tax rate through Managed Investment Trusts, accelerated depreciation benefits and exemptions from the new negative gearing restrictions.

State governments have added further concessions, including land tax reductions and exemptions from foreign investor surcharges.

Australian mum-and-dad investors receive none of these advantages.

The cumulative effect is striking. Foreign institutions can access a range of tax benefits unavailable to Australian private investors, while local investors lose concessions they have relied upon for decades.

This is not solving the housing crisis. It risks transferring ownership of Australia’s rental housing stock from local investors to offshore institutions.

Why state governments should worry

There are already signs these changes are affecting the credit cycle.

Major banks are removing negative gearing benefits from serviceability calculations for investment loans.

As market conditions soften, lenders become more cautious and investors find it harder to secure finance.

That matters because property transactions are a major source of state government revenue.

In NSW alone, transfer duty generates more than $12 billion annually. If transaction volumes fall significantly, the impact on state budgets will be substantial.

The consequences extend beyond stamp duty to GST collections, payroll tax receipts and land tax revenue.

The 95 per cent loan trap

There is another aspect of the Budget that concerns me.

The government has expanded first-home buyer deposit guarantee schemes, allowing eligible purchasers to buy with a five per cent deposit backed by the Commonwealth.

The intention is admirable. The timing may not be.

If prices in Sydney and Melbourne fall further, buyers entering the market with 95 per cent loan-to-value mortgages could quickly find themselves in negative equity.

They become trapped. They cannot sell without crystallising a loss, while the taxpayer guarantees the loan and the bank remains protected.

That is not wealth creation. It is a debt obligation.

After three decades working with debt and investment, I would never encourage my own children to borrow at a 95 per cent loan-to-value ratio.

A policy built on politics

The government had an opportunity to address the housing crisis by encouraging supply, reforming planning systems and reducing development costs.

Instead, it chose Robin Hood politics.

The optics may be appealing, but the economics are not.

Australians may ultimately pay the price through higher rents, weaker investment and a future in which an increasing share of the nation’s housing stock is owned by offshore institutions rather than local investors.

Paul Miron is the Co-Founder & Fund Manager of Msquared Capital.