The secret weapon for selling prestige property
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The secret weapon for selling prestige property

Developers, architects and agents are turning to contemporary Australian art to make their properties stand out from the crowd

By Dee Jefferson
Wed, Mar 20, 2024 9:16amGrey Clock 5 min

When architect Phillip Mathieson first walked members of Third.i property group through the interiors he had designed for their Kurraba Point “super penthouse”, there were a few raised eyebrows. It wasn’t the million-dollar kit-out of furniture and decor by French luxury brand Liaigre that was disconcerting his clients — it was the art. Not the Brett Whiteley linocut of a dove, or the intricately patterned larrakitj (memorial pole) by Yolngu artist Malaluba Gumana, but the yellow mirrored work by young queer artist Tay Haggarty, which appeared to be pinioned to the wall by four white socks.

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Mathieson, whose architecture firm was charged with the interiors for all 24 residences in Third.i’s new Sydney Harbour-side development (including 21 harbourfront apartments and two sub-penthouses), was given free rein on choosing the art for the penthouses, and engaged the expertise of Artbank: a governmental body whose collection of more than 10,000 Australian artworks spans from the 1920s to now, all available to lease. In the super-penthouse, the selection includes a monumental work in black Belgian marble by the late Melbourne artist Joel Elenberg (who smashed the sales record for Australian sculpture in August 2023 with a similar work, which sold for $925,000) and a mix of abstract and figurative works by significant artists such as Bronwyn Oliver and Marion Borgelt.

Architect Phillip Mathieson at the Kurraba Penthouse. Elton John was recently suggested as a possible buyer for the property, claims which were firmly denied by his representative.

Amongst these, Haggarty’s piece stands out: “It’s quite a controversial piece to have in there, given that it’s a very high end development,” says Artbank consultant Carey Corbett, who worked closely with Mathieson Architects to select the works. “I imagine the expected clientele is not so familiar with their work, being a younger artist — and possibly not the sort of artist that some of those prospective buyers would have in their homes.” 

But Haggarty’s piece, titled Sun on Bare Back, provides a moment of delicious, cheeky dissonance within the elegant surroundings.

Tay Haggarty’s Sun on Bare Back is a controversial choice, Artbank consultant Carey Corbett says.

It’s the kind of memorable moment designed to cut through at the top end of the market. 

As Mathieson says: “Quite often what happens when there’s a display suite for a project, or even when a project is finished, either it’s left empty or it’s furnished with rental items, and you end up with a bad reproduction poster on the wall; it’s all very generic. The Kurraba project was unusual in that the developer, I think partly because of the market that they were going after and the calibre of the location and the apartment itself, saw the value in buying furniture -— and therefore the natural extension of that was to fully provide the experience of how someone might live. 

“The art is part of that.”

Lachie Gibson, founder and CEO of Melbourne developer ANGLE, agrees. His outfit prides itself on providing a holistic package of high quality location, architecture, landscape and interiors — and he sees art as a “crucially important” extension of that. ANGLE champions Australian creatives, partnering with emerging talent (including furniture designer Thomas Lentini, before he broke into the big league) and local heroes such as Dinosaur Designs, design firm Flack Studio, commercial galleries and Artbank, to create distinctive interiors for their high-end residential developments, including the multi-award-winning Fenwick, in Kew.

“We’ve had success over the years  selling off the plan, but at the end of a project you might have a $6 million penthouse [not yet sold] and so you’re styling it for sale — and the difference between the kind of generic property stylist that the real estate companies use and partnering with someone like Artbank, is huge,” Gibson says. 

Even when apartments are sold off the plan, ANGLE typically brokers relationships between buyers and interior designers, who will then do a full furniture and art fit out. “Obviously it’s awesome for the client — it elevates their space and makes it feel incredible. But also for us as a developer, the photographs of those completed spaces become almost our number one marketing tool,” Gibson says. 

“It’s pretty easy to go and render something up, but having a built space that’s got amazing artwork is hugely advantageous to us.”

For their latest development, Fenhurst, ANGLE is partnering with Artbank to select hero pieces for the common areas, and with Melbourne gallery Daine Singer for apartment artworks — which will be shown in marketing renders, but available to see in the flesh (and purchase) from the developer’s Harold Street Gallery: a multi-purpose space in Camberwell that was designed by Fleur Sutherland and showcases ANGLE’s regular collaborators alongside a rotating selection of pieces from Artbank and Craft Victoria.

It’s not just developers harnessing art for a competitive edge. When Simon Hakim, CEO of creative agency Hunter, and his wife decided to put their stunning home “Rail House” in Melbourne’s Northcote on the market, they knew they needed art for the massive walls in their central living area. 

“Over the years, we’d been talking about putting artwork up there, and had a built-in rail installed specifically for art [but] we couldn’t ever decide on what we liked,” he says. Then a neighbour introduced Hakim to Artbank, which has short and long-term and annual leasing plans that range from $165 to $5500 per annum.

“It was a really good way to test out the art wall — and to see massive works that we were able to display [on the rail] but couldn’t afford,” Hakim says. 

In the end, they leased a series of prints by photographer Bill Henson. 

“It filled an empty void; it made a huge impact on the house. [And] we had a lot of comments about the work [from prospective buyers],” says Hakim.

Bill Henson’s Untitled 36/105

Sydney property agent Georgia Cleary, of McGrath Paddington, says there’s an increased appreciation of art across the market these days, and in the prestige end of the market in particular: “People will pay tens of thousands of dollars to style their properties, and you can’t put prints into those homes.” 

McGrath generally asks stylists not to put art on the walls, and instead partners with local artists and galleries to select high-end pieces. “We’ve found that the market responds really well to original works [rather than reproductions or prints],” says Cleary. “It elevates the perception of the property as ‘prestige’.”



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Why more Australians on high incomes are renting

This may be contributing to continually rising weekly rents

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There has been a substantial increase in the number of Australians earning high incomes who are renting their homes instead of owning them, and this may be another element contributing to higher market demand and continually rising rents, according to new research.

The portion of households with an annual income of $140,000 per year (in 2021 dollars), went from 8 percent of the private rental market in 1996 to 24 percent in 2021, according to research by the Australian Housing and Urban Research Institute (AHURI). The AHURI study highlights that longer-term declines in the rate of home ownership in Australia are likely the cause of this trend.

The biggest challenge this creates is the flow-on effect on lower-income households because they may face stronger competition for a limited supply of rental stock, and they also have less capacity to cope with rising rents that look likely to keep going up due to the entrenched undersupply.

The 2024 ANZ CoreLogic Housing Affordability Report notes that weekly rents have been rising strongly since the pandemic and are currently re-accelerating. “Nationally, annual rent growth has lifted from a recent low of 8.1 percent year-on-year in October 2023, to 8.6 percent year-on-year in March 2024,” according to the report. “The re-acceleration was particularly evident in house rents, where annual growth bottomed out at 6.8 percent in the year to September, and rose to 8.4 percent in the year to March 2024.”

Rents are also rising in markets that have experienced recent declines. “In Hobart, rent values saw a downturn of -6 percent between March and October 2023. Since bottoming out in October, rents have now moved 5 percent higher to the end of March, and are just 1 percent off the record highs in March 2023. The Canberra rental market was the only other capital city to see a decline in rents in recent years, where rent values fell -3.8 percent between June 2022 and September 2023. Since then, Canberra rents have risen 3.5 percent, and are 1 percent from the record high.”

The Productivity Commission’s review of the National Housing and Homelessness Agreement points out that high-income earners also have more capacity to relocate to cheaper markets when rents rise, which creates more competition for lower-income households competing for homes in those same areas.

ANZ CoreLogic notes that rents in lower-cost markets have risen the most in recent years, so much so that the portion of earnings that lower-income households have to dedicate to rent has reached a record high 54.3 percent. For middle-income households, it’s 32.2 percent and for high-income households, it’s just 22.9 percent. ‘Housing stress’ has long been defined as requiring more than 30 percent of income to put a roof over your head.

While some high-income households may aspire to own their own homes, rising property values have made that a difficult and long process given the years it takes to save a deposit. ANZ CoreLogic data shows it now takes a median 10.1 years in the capital cities and 9.9 years in regional areas to save a 20 percent deposit to buy a property.

It also takes 48.3 percent of income in the cities and 47.1 percent in the regions to cover mortgage repayments at today’s home loan interest rates, which is far greater than the portion of income required to service rents at a median 30.4 percent in cities and 33.3 percent in the regions.

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Just 55 minutes from Sydney, make this your creative getaway located in the majestic Hawkesbury region.

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