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Price Per Square Metre of Melbourne Penthouse Apartments

Open plan living room of Melbourne penthouse apartment

Melbourne penthouse apartment, realestate.com.au

This week, Secret Agent takes a closer look at the price per square metre of Melbourne penthouse apartments.

Besides occupying the top floor of a medium to high rise building, for an apartment to be considered a penthouse, it also had to have a distinguished floor plan.

Out of 1,908 apartments sold around inner Melbourne since January 2016 to May 2017, there were only 21 penthouse apartments. All of these were new, post-90s builds except for 2 warehouse conversions. These penthouses were concentrated around the CBD, inner East and inner South suburbs.

Note that our results were skewed towards the sub-$3 million penthouse market, as information on apartments sold above this value is generally less accessible. Most of the apartments in our study are not whole-level penthouses.

Suburb Penthouses Non-Penthouses
Average sale price $1,739,048 $590,655
Average overall PPSM** $11,076 $8,724
Average PPSM for 2 bed $11,544* $8,669
Average PPSM for 3 bed $11,132 $8,877
Average PPSM for 4 bed $10,187* $10,138
     
Median internal area for 2 bedrooms 139sqm* 69sqm
Median internal area for 3 bedrooms 157sqm 118sqm
Median internal area for 4 bedrooms 192sqm* 198sqm
Median outdoor area 47sqm 7.5sqm

* Based on less than 5 sales,  ** PPSM refers to price per internal square metre

Table 1   Average prices per square metre and median sizes in penthouses versus non-penthouses around inner Melbourne

Price per square metre

Unsurprisingly, the average price per square metre of penthouse apartments ($11,076/sqm) is approximately 27% higher than the inner Melbourne average ($8,724/sqm).

The price per internal square metre of these penthouses decreases as the number of bedrooms increases. Generally, 3 and 4 bedroom apartments command higher prices per unit of floor area compared to 2 bedroom apartments due to the oversupply in the broader market. However the opposite is true with penthouses, both in terms of price and supply, although there is insufficient data for this to be conclusive.

Internal space

2 bedroom penthouses (139sqm) are twice as big as the average 2 bedroom apartment (69sqm). As the size of the apartment increases, this difference starts to fall, with 3 bedroom (118sqm) and 4 bedroom (198sqm) apartments closing the gap with their penthouse equivalents (157sqm and 192sqm, respectively).

Outdoor space

While we can safely assume that penthouses are usually larger than your average apartment, there is no consistency in the size of outdoor area. Some penthouse apartments have as little as a 7sqm balcony (equivalent to the median balcony size of an average apartment), to as much as a 237sqm private rooftop terrace. Through observation this is usually dependent on the individual apartment building; if the rest of the building has little to no private outdoor space, the penthouse is no exception.

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