Just a stone’s throw away from one of the busiest parts of Melbourne, Australia, lies a quiet little suburb that, by virtue of its positioning and history, is largely inaccessible to even the most moneyed individuals.
Toorak—an inner suburb in Melbourne, five kilometers southeast of Melbourne’s Central Business District and known for its gated cul-de-sacs and wide, tree-lined streets—has been a private playground to the rich and famous since wealthy merchant James Jackson built an Italianate residence there in 1849.
Unlike Sydney, a city famed for its proximity to the Sydney Harbour and which the director at Abercromby’s Real Estate Jock Langley called “a place to visit rather than to live,” Melbourne’s best suburbs exude a quiet opulence favored by local families with old money, dignitaries and wealthy expats who crave privacy.
“Melbourne, and especially Toorak, is a city that is well-planned and clever in the sense that it has all these nice, wide, tree-lined avenues, gentle topography and stately homes that have existed since the turn of the [20th] century,” Mr. Langley said.
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These substantial family estates, often tailored in the neoclassical, Italianate or colonial styles, include large entertainment areas with cinemas, swimming pools, wine cellars, multiple-car garages, botanical gardens and luxury fitouts.
Yet even a suburb as resplendent as Toorak has its stars: St. Georges Road, which runs between the main arterial of Toorak Road and the Yarra River, boasts some of the most monumental and luxurious mansions in the country.
Toorak House, dubbed “Melbourne’s most significant estate” and the site of the city’s former Government House, was in June listed for a staggering A$65 million (US$42 million) to $70 million, making it one of Victoria’s most expensive homes.
Two months later, 27-year-old Stake.com founder Ed Craven paid more than A$80 million for 27-29 St. Georges Road, a sprawling 7,246-square-meter, north-facing estate that was empty for decades after director of Ausvest Holdings, David Wu, bought the property for A$5 million in 1991.
Kim Easterbook of Elite Buyer’s Agents, who represented Mr. Craven in the deal, said finding an estate without heritage overlays on St. Georges Road is a rare opportunity.
“A property that is a blank canvas is so unusual here, and my client wanted to create something very modern on it,” she said. “Being on St. Georges Road also means being in good company: There’s a lot of big houses and big money here.”
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Boundaries
Located on a rise on the south side of a bend in Melbourne’s largest river, the Yarra, Toorak borders a series of wealthy suburbs with South Yarra on the west; Malvern at Glenferrie Road on the east; Prahran and Armadale at Malvern Road to the south; and the more hip suburbs of Richmond, Burnley and Hawthorn to the north of the river.
Price Range
It is difficult to determine an average price point for Toorak, let alone the exclusive St. Georges Road.
A fiercely private area where estates and homes are often sold off-market, prices here are influenced not only by cost-per-meter (ranging from A$8,000 to A$14,000, said buyer’s agent David Morrell of Morrell & Koren) but also by interest rates, generational deaths (when a family generation dies out) and interest from wealthy migrants.
Toorak’s median house dwelling value was just under A$5 million as of August, with apartment units going for just above $1 million, according to Eliza Owen, CoreLogic Australia’s head of research.
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And while Toorak often performs 5% better than any other suburb in Victoria, the pandemic has seen house values down in the area by 1% as compared to five years ago.
A downturn does not mean affordability, and Ms. Owen said properties selling on St. Georges Road are some of the most expensive in the area, routinely going for tens of millions.
“These are substantial family estates with giant entertainment areas, swimming pools, typically large land size, luxury fitouts and big gardens. Having that space and sanctuary, especially through the Covid period, became particularly important, where some of these high-end buyers would have retreated,” Ms. Owen said.
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What Makes It Unique
Premium street locations, walled, northern-backed gardens and close proximity to luxury boutiques, restaurants and public transport are just some unique features that characterize Toorak and its exclusive streets.
“Toorak is also a suburb of fences; everyone has a huge fence here and you don’t know who your neighbors really are,” Mr. Morrel added. “This sort of privacy, as well as the location and orientation, is what developers and homeowners will pay a premium for.”
Luxury Amenities
At the heart of Toorak’s commercial precinct lies Toorak Village, a popular local haunt featuring more than 300 boutiques, sunny street cafes, fine dining and luxury beauty parlors.
The neighborhood also includes Kooyong Lawn Tennis Club and Brookville Gardens. Geelong Grammar — one of Australia’s most prestigious schools attended by King Charles III for two terms in 1996 — also has its primary school campus in Toorak, as does boys’ private school St. Kevin’s College and girls’ school Loreto Mandeville Hall Toorak.
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Housing Stock
While Toorak may be known for its lavish mansions, in reality it is a mix of new and old buildings, townhouses and luxury apartments. And while the flats may not include extensive manicured gardens, they often feature similar luxury amenities to those found in mansions: large terraces and balconies with views of the Yarra River, the cityscape, multiple-car garages and luxury finishes.
Who Lives There
While Toorak is home to some of Australia’s most prominent families, Mr. Langley said premium housing is generally picked up by buyers from abroad.
“In the last five years, many estates have been bought by Chinese nationals,” he said. Other than wealthy expats, streets such as St. Georges Road and Albany Rd are targeted by members of well-known families who have been living in Toorak for generations.
“These are generational homes which will never be available for sale to the public,” Mr. Morell added. “There is always someone from one of these families looking for a property at any one time.”
Notable Residents
Other than Mr. Craven, notable residents include the Baillieus, a wealthy family started by politician and businessman William Lawrence Baillieu in the late 1800s and whose members include former Victorian Premier Ted Baillieu.
In 2010, property magnate Harry Stamoulis, head of Stamoulis Property Group, purchased a Baillieu family home for more than $24 million and controversially demolished the federation-style house that had been in the family for 70 years.
Trucking magnate Lindsay Fox, who founded Australia’s largest logistics company Linfox, lives on Irving Street in his A$50 million mansion, while apparel businessman Solomon Lew resides nearby in his Albany Road compound.
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Outlook
“In the past 12 months, we’ve seen relatively steep declines in value across the suburb,” Ms. Owen said. “For the overall selling market across Toorak, values are currently down 9.8%, with house values falling 9.5% and units 9.4%.”
The price downturn is the result of the steepest rate- rise cycle since the 1990s, which Ms. Owen said usually affects the high-end property prices most in the Australian housing market.
“When rates are being cut, the high end of the market will see some of the biggest upswings and gains in values,” she points out. “Now we’re in the opposite situation, which is bringing some of those high- end property markets down dramatically.”
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