2.5-3.5m

DINKS, high flyers and yuppies just love them. Power couples and gorgeous gay men with Weimaraners buy them. Yes folks prestige properties have broad appeal.

From a minimalist Penthouse that would make Donald Judd proud, to a converted warehouse with industrial-luxe finishes, the prestige category is defined as a Six Star Entertainer. Prestige properties are a once in a lifetime investment. If you want to shop smart in this category, you’ll do well to consider new emerging suburbs. The trend for groovy warehouses is no longer confined to Surry Hills and Redfern but spreading out west along the train line.

31 Australia Street, Camperdown recently sold for $4,275,000. With equal parts soul & a clean interior aesthetic, this architect-designed warehouse home is among Sydney’s best warehouse conversions.

Hot spots: Bargain hunters will open their minds to consider locations like Newtown, Surry Hills, Paddington, Chippendale, Elizabeth Bay and Birchgrove. These new trendy suburbs have had some big money invested into them, which means you might be pleasantly surprised by what you find behind the 8 foot roller door or high front fence. Even poky places in outlier suburbs that look anonymous from the street have often been upgraded, converted and extended inside.

Property types: Large Victorian terraces, converted warehouses, terraces with magical extensions, single-storey family homes and penthouses with water views.

Hint: The way to unlock growth in this category is to gun for tightly held pockets and good streets in out of the way burbs. As the years tick by, these trendy, close to amenity zones are sure to climb in value and desirability. To top up the perennial value of the home, seek water views or leafy outlooks.

View from the garage at  31 Australia Street, Camperdown recently sold for $4,275,000

View from the garage at 31 Australia Street, Camperdown which recently sold for $4,275,000

Think design: “The warehouse conversion is a popular choice for investors and residents at the upper end of the market,” notes Nicky Lobo from Habitus.

“There’s something about entering an unremarkable or industrial building and emerging into a kind of interior wonderland that is irresistible. It’s like the grand reveal in an architect or designer’s magic show,” Lobo says.

Architectural expert and author Paul McGillick stresses the importance of location to the retiring age group and emphasises the need for classic design decisions.

“The trend is to invest in gimmicks and home entertainment – integrated electronics, home theatres and that kind of thing, but for prestige buyers it is location; prestige, security and proximity to amenity.

“They are looking for a world-within-a-world, featuring security, privacy, immediate amenity and an integrated house. Hence, an extension linked seamlessly to the existing house, often provides for large scale entertaining,” McGillick says.

37 Windsor Street, Paddington recently sold for $2.7 million. In this terrace old world meets the new in elegant style. Set in the very heart of Paddington village, 37 Windsor is a sophisticated and refined example of prestige property. With hints of classic detail and new finishes throughout.

26 Hincks Road is a gritty un-refurbished 250sqm warehouse located in Kingsford. This property sold for $785,000 in 2009. Today it is prime for development after passing through the hands of two new owners in the last year. This open plan space, in the traditionally non-celebrity area of Kingsford, recently sold for $1.4m and then again at auction for $1.6m. Hincks demonstrates an increased demand for this category of warehouse property and the increasing prestige of once neglected city fringe address.

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