CEO’s address

Each November we ask our residential teams around Australia to provide a comprehensive review of their prestige property market’s performance throughout the past year – and in 2024 it’s been a compelling set of submissions. 

The definition of “prestige” is of course heavily dependent on location. The sheer breadth of Herron Todd White’s market coverage illustrates this. For example, a $2 million home in Rockhampton would be among the city’s most luxurious, but that same figure in Sydney’s Rose Bay reflects a comfortable three-bedroom unit. 

One of the compelling conclusions you can draw from this month’s submissions is the way markets are redefining their prestige sectors in terms of price points and suburbs. For example, the Mossman price record was broken this year. Other locations are seeing new levels of prestige activity too. I was recently discussing this sector with our directors in Toowoomba, and they noted their city hadn’t seen a $5 million-dollar residential sale until this year, and then there were three transactions above that figure in the space of one month. 

Many of our valuers have also noted that across some markets, transaction numbers at prestige price points haven’t increased dramatically, but sale prices have. Often, it’s because there’s a limit to the number of listings coming to market. A lot of purchasers at the top end are less affected by interest rate cycles and lending restrictions. As such, they will pay a premium price to secure a home among the limited listings that will meet their specific needs.

In this environment the price point record at the ultra-prestige end is regularly being raised by dramatic sale results. There’s also a material strength in medium-size capital city markets with recent data suggesting the highest priced suburbs in Brisbane have seen their median values increase 20 to 40 per cent this year, while luxe suburb prices in Perth and Adelaide increased by even more. Of course, at this top end, just a few very high sale results among the low transaction numbers can result in a dramatic shift in median values. 

My sense is that despite the strong numbers throughout 2024, we are entering a period of buyer caution at the top end in response to both an uncertain economic outlook in 2025 and less demand from some buyer types such as offshore purchasers. I still expect quality property to achieve outstanding figures and strong demand, but it will be interesting to see if selling periods increase and vendors are more open to discounting in the near term. 

For our commercial property readers, this month’s submissions are a 2024 wrap up of the office sector. There’s been diverse performance across the country with different classes of property operating at varied speeds.

Finally, our rural submissions this month cover some of the country’s primary grazing property markets. There are details on compelling sales in 2024, and speculation on market direction in the year ahead.

Gary Brinkworth

CEO