Penthouse a bargain at $7m

Price cracks have emerged in the luxury apartment market allowing the newly appointed tourism chief Geoff Dixon to pick up a $7.75 million penthouse bargain in The Rocks.

It last sold for $10 million in 2007 and $8.5 million in 2003.

The two-storey Hickson Road property bought this week by Mr Dixon and his wife, Dawn, comes with postcard views of the Opera House and Harbour Bridge.

It was marketed internationally from August to set it apart from the 65 units priced at $5 million or higher on Domain.com.au. Some have been for sale for three years.

Mr Dixon, the former head of Qantas who was appointed chairman of Tourism Australia this week, has their Balmoral residence listed for sale at $9 million. He paid $7.75 million for it in 2006.

Agents blame the slowdown in luxury house sales for the sharp decline in apartment prices. ”There’s the tougher economy and an oversupply of luxury penthouses,” one said.

Sydney’s median unit sale was $650,000 at auction last weekend, according to Australian Property Monitors. The dearest was $1.63 million at Clovelly, for a 106 sqm duplex. Sydney’s overall July auction clearance rate stands at 61 per cent, down from 62 per cent in June.