Prestige Property Divide

Brisbane and Adelaide Surge as Sydney and Melbourne Markets Soften, reveals new prestige property index

Australia’s prestige property market is a tale of two tiers, with sentiment in Brisbane and Adelaide running “hot” while the traditional powerhouses of Sydney and Melbourne have cooled to a “balanced” state, according to the inaugural Herron Todd White (HTW) Prestige Property Monitor.

The new monthly report features the HTW Prestige Index, a sentiment reading from the firm’s most experienced valuers across major capital cities.

The first index for February 2026 shows an average national prestige reading of 6.6 out of 10, indicating a “Warm” national prestige market.

However, this overall score masks significant divergence across capitals.

Brisbane and Adelaide are leading the pack with “Hot” sentiment scores of 8, while Perth is also considered “Warm” at  7.

In stark contrast, both Sydney and Melbourne recorded a more subdued “Balanced” reading of 5.

HTW’s Managing Director, Residential, Drew Hendrey, said the index revealed a fascinating shift in the dynamics of Australia’s high-end property market.

“We are seeing a two-speed market at the top end across the big cities,” Mr Hendrey said.

“While the prestige markets in Sydney and Melbourne are taking a breather under the weight of economic uncertainty and affordability pressures, cities like Brisbane and Adelaide are experiencing a surge in confidence.

“This reflects a broader trend of population shifts and a re-evaluation of lifestyle and value by high-net-worth buyers.”

Mr Hendrey noted that the subdued start to 2026 in Sydney was particularly telling, with a noticeable drop in listings and sales above the $15 million mark compared to previous years.

“The first half of 2026 is expected to remain subdued in Sydney’s prestige market, particularly in the lower end $5 million to $10 million prestige bracket, as high inflation and interest rates bite,” he said.

Similarly, Melbourne is tracking in line with broader market conditions, with pessimism about state property taxes and land tax obligations tempering sentiment and transaction volumes at the upper end.

In contrast, Brisbane is experiencing very strong demand for high-quality, architecturally designed modern homes, with agents reporting strong buyer interest and little drop-off in enquiries over the holiday period.

“Brisbane’s prestige market is firing on all cylinders,” Mr Hendrey said. “There is a depth of demand for premium properties that is keeping the market exceptionally buoyant.”

Adelaide is also a standout performer, buoyed by both local and interstate buyers who see relative value compared to the larger capital cities.

“Adelaide is increasingly being recognised as a prestige destination, and we expect to see this trend continue as more high-quality stock comes to market,” Mr Hendrey said.

Perth remains a strong market, with firming conditions driven by high demand and a chronic under-supply of premium properties.

Mr Hendrey said the HTW Prestige Property Monitor will be a valuable tool for tracking the nuances of a market segment that often acts as a barometer for the broader real estate activity and economic confidence.

“The prestige market operates on a different set of drivers to the general market,” he said.

“By capturing the sentiment of our most experienced directors on the ground, the HTW Prestige Index provides a unique and timely insight into the health of this important sector.”