While policymakers debate how to address Sydney’s housing shortage, the city’s prestige property market continues to set benchmarks. This week, a Rose Bay estate known as The Knoll sold under the hammer for $45.1 million — the highest recorded auction price for a house in Australia.

The property, a Georgian revival residence dating to the 1930s, had been in the same family since 1962 when it was purchased by descendants of Sir James Burns. The 2,536-square-metre landholding, with views across the Royal Sydney Golf Course, offered six bedrooms and four bathrooms.

The sale attracted close to half a dozen local families. Bidding began at $29 million and quickly escalated in multimillion-dollar jumps, eventually closing at more than $15 million above the opening offer.

Despite falling within areas identified under the state government’s low- and mid-rise housing reforms, industry observers had anticipated limited developer interest given the scarcity of comparable large-scale private estates in the eastern suburbs. That proved accurate, with the final buyers securing the property for residential use rather than redevelopment potential.

The campaign was handled by Richardson & Wrench agents Michael and James Dunn. Michael Dunn noted the rarity of such offerings: “Homes of this size and calibre seldom come to market. The strength of the result shows the value buyers place on truly unique holdings in Sydney’s east.”