Capital Gain
Fractional ownership is taking off among the uber-rich who are also looking at being more sustainable when it comes to investing in high-end collectibles.
While geopolitical unrest, higher interest rates and liquidity concerns have an impact on ordinary folks’ spending habits, the world’s super wealthy are still spending big on collectibles with history and “providence”.
There is also a trend towards owning a share of an item as a way of diversifying risk.
Known as “fractional ownership”, Berlin-based online trading platform Timeless Investments is selling fractions from as little as $US60 ($84) each in rare collectible items.
Timeless offers a fraction of a rare 66 million-year-old Edmontosaurus skull which delivered a 22.4 per cent return in just 8½ months in 2025, according to the 20th edition of Knight Frank’s The Wealth Report, released this week.
Reflecting a rise in sustainability, one of the surprise sales was Jane Birkin’s well-loved personal Hermes Birkin bag, which sold for $US10.1 million ($14.38 million) at Sotheby’s. These items are called “beater bags” and are being favoured over the new pristine Birkin and Kelly handbags.
The Wealth Report revealed that the Knight Frank Luxury Investment Index had slipped a marginal 0.4 per cent over the 2025 year. The small decline compared to drops of 2.7 per cent in 2024 and 3.3 per cent in 2023.
The report tracked 10 categories covering handbags, jewellery, coins, watches, cars, colour diamonds, furniture, whisky, wine and art.
Impressionist art had the highest rate of growth in 2025, with a surge of 13.6 per cent in value, driven by major single-owner sales and standout results including Gustav Klimt’s Portrait of Elisabeth Lederer, which changed hands for $US236.4 million, the highest-ever price for a modern artwork sold at auction.
The owners of the plethora of new watch shops in Sydney will be happy to know that sales rose by 5.1 per cent in the 2025 year, led by demand for Patek Philippe’s Aquanaut and Nautilus models and continued resilience from Rolex.
Classic car values fell 3.7 per cent, although “halo” models – such as the Ferrari F50 – remained in fierce demand, with major US and European auctions achieving notable results.
Lidcombe offer
The redevelopment of the Sydney Olympic Park precinct in the city’s west has prompted large-scale developers and owners JQZ to offer a site at Lidcombe with price expectations of about $20 million.
The seven-storey, 3731-square-metre building at 5 Uhrig Road has planning approval for two levels of hotel accommodation and five levels of co-living accommodation.
It is part of JQZ’s Vivacity development bordering Sydney Olympic Park and Carter Street and, once completed as a hotel and co-living housing, will have an estimated value of about $37 million.
A month ago, the NSW government finalised a master-plan to add 15,000 new homes to Sydney Olympic Park by 2050.
The plan aims to turn the precinct, best known for its sporting grounds, into a “vibrant community” that includes a mix of residential, retail and commercial properties to be developed over the next 24 years. Jeff Moxham, Tim Holtsbaum and Luke Shackleton of Knight Frank are handling the sale.
Artarmon’s sheds
A freehold industrial property in the tightly held lower north shore industrial precinct has been listed for sale by private investor Ken Ahn with price expectations of about $20 million.
The property at 4 George Place has 3208 square metres of high-clearance warehouse and office on a 2270-square-metre landholding with 37 on-site car spaces.
Artarmon is one of the busiest industrial property areas, with the ASX-listed Goodman developing a large-scale data centre on the site of the former ABC television studios. The site is being sold through Colliers’ John Carney and Hugh Anderson of Sutton Anderson.
Etna cafe
The former home of the famous Etna cafe in Mascot is being sold with a price tag of more than $5 million.
Although the cafe closed its doors a while ago, the Barbagallo family has owned the site at 1069-1075 Botany Road since 1962. It is being sold as part of a deceased estate after family matriarch Giuseppina Barbagallo passed away at age 102.
Originally three shops and a rear residence, the 1230-square-metre holding became home to the much-loved Etna Cafe, named after Mount Etna in Sicily, a nod to the family’s heritage. Over time, the family expanded, acquiring the neighbouring house and creating the substantial footprint now offered for sale.
Anthony Vella and Phillip Elmowy of RWC South Sydney are selling the property.
carolynannecummins@gmail.com
The Market Recap newsletter is a wrap of the day’s trading. Get it each weekday afternoon.
