Boom is back with penthouse marketing splash

A CITY penthouse described as Melbourne's most opulent could approach the record apartment price once offers close next month.

But the marketing campaign to sell the former home of recruitment entrepreneur Bob Biddle at The Melburnian on St Kilda Road for more than $10 million is almost as extravagant as the property itself.

Three top chefs, including celebrity masterchef George Calombaris, will tonight make use of its twin kitchens to cook for a VIP launch.

About 50 guests will watch the sunset from the lawn of its private roof garden, which has a heated lap pool, observation deck and views from Port Phillip Bay to the Dandenongs.

Among them will be the girlfriend of footballer Lance Franklin, model Kasia Zachwieja, who starred in one of two YouTube films made to promote the sale.

Ms Zachwieja will wear a fuchsia gown for tonight's launch, but in case of emergency, the apartment's dressing room is stocked with spare Chanel clothes and Manolo Blahnik shoes.

Real estate agent Kay and Burton is investing in the kind of campaign that has not been seen since the caviar and string quartets that accompanied the sale of luxury property during the 2007 property boom.

The global financial downturn hit the top end of the residential market hardest and sales are still comparatively quiet, with the lack of activity reflecting decreased demand and vendors' unwillingness to put quality stock on the market.

But house prices in Melbourne's most expensive suburbs made a major comeback in the June quarter to recover most of the value lost in last year's slump and drive overall price growth, according to Australian Property Monitors.

Some agents see the apartment's listing for sale as a symbol of returned confidence in the upper end.

The Melburnian, on the site of the former Prince Henry Hospital, has been among the city's best-performing buildings for capital growth since it was completed in mid-2002, according to RP Data.

Designed by the architects of Federation Square, it has been home to some of Melbourne's rich and famous, including footballer Matthew Lloyd, former chairman of the IT group Senetas, Francis Galbally, and a member of Melbourne's judiciary.

Mr Biddle, who founded nursing agency Origin Healthcare, paid a record $5 million when he purchased off the plan in 2000.

Victoria's record for an apartment is believed to be $18.2 million, paid late last year by a mystery buyer for the sub-penthouse at Salta's redevelopment of the old Mercy Hospital in East Melbourne, which is due to open next month.