Australia’s prestige property market continues to evolve in 2025

This month, we take a deep dive into Australia’s prestige residential markets.

Sydney continues to dominate Australia’s trophy home landscape and remains one of the world’s least affordable major cities. Recent deals reinforce that point; large sales have commanded record-setting prices, with the top-end harbourside suburbs of Point Piper, Bellevue Hill and Vaucluse pushing into the tens of millions.

Throughout 2025, Sydney’s luxury segment has seen both off-market and high-profile auction sales that continue to set new benchmarks. For instance, Sydney accounted for 17 of the top 20 residential sales this year, amounting to $1.1 billion in aggregate.

Although buyer demand remains strong for ultra-premium estates, some softness is emerging. Days on market for prestige properties have increased marginally, sale volumes are somewhat lower than peak periods, while price growth has moderated compared to the post-COVID boom. Still, limited supply with signature waterfront settings and commanding views in prestige neighbourhoods continues to insulate the market from sharp price corrections. For well-located, high-quality mansions or hero homes, competition remains intense and pricing remains strong.

Melbourne lags somewhat behind Sydney in headline luxury activity, though its top end remains fairly competitive in specific suburbs, particularly the crown jewel of Melbourne prestige, Toorak. With the spring selling period now in full bloom, we have seen several high-end properties enter the market, ranging from $20 million to $50 million, revealing a confidence that robust transactions will occur at the top end.

However, Melbourne’s prestige segment faces some headwinds that are not as pronounced in Sydney. These include state-level tax policy pressures and a more cautious investor sentiment. Notwithstanding, for premium properties in A-grade suburbs such as Hawthorn, Canterbury, Armadale, and Brighton, with prestige amenities including views, contemporary design by respected architects and designers, access to elite schools, or water views and beach access, demand remains relatively strong. Furthermore, Melbourne’s market is expected to continue modest growth from now through into 2026, particularly for well-located, high-quality stock.

Brisbane is increasingly emerging as a serious prestige market. It has recently recorded a substantial increase in the number of very high-value residential sales. Brisbane recorded 139 sales over $5 million in the past year – a new record, and a 25 per cent increase year on year in this segment.

In the west, Perth is among the strongest luxury home markets in Australia in 2025. It recorded the highest growth in luxury residential property among Australian capitals over recent years. Perth’s luxury residential prices rose by 5.3 per cent over 2024 and are on track for a further three per cent to the end of the year. There is bang for your dollar in the Perth luxury market compared with more expensive cities – $4 million buys more square metres of luxury property in Perth than in Sydney or Melbourne.

Overlaying all markets, overseas buyer appetite remains cautiously positive. Australia’s relative economic stability and quality of life appeal continue to draw interest from global high-net-worth individuals, particularly in Sydney’s and Melbourne’s prestige suburbs.