Herron Todd White's deep dive into Australia’s prestige residential markets finds that top-end conditions remain broadly resilient, even as momentum cools from the post-pandemic highs.
There are fewer transactions than at peak levels, but deal sizes at the very top remain substantial, supported by steady offshore interest in blue-chip postcodes.
As Perron King (pictured), director, notes, “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.”
Across the broader property landscape, retail has also rebounded, with rate cuts, resilient consumer spending and limited high-quality supply driving firm investor demand and stronger confidence into late 2025, HTW reported. This improved sentiment provides a supportive backdrop for wealth and investment decisions at the prestige residential end of the market.
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 a mix of off-market and high-profile auction sales that continue to set new benchmarks. Sydney accounted for 17 of the top 20 residential sales this year, amounting to $1.1 billion in aggregate – a concentration that highlights how much of Australia’s super-prime activity is still anchored around the harbour.
Although buyer demand remains strong for ultra-premium estates, some softness is emerging at the margins. 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 of homes 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, HTW reported.
With the spring selling period now in full bloom, several high-end properties have entered the market, ranging from $20 million to $50 million, revealing 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. In some cases this is contributing to more detailed due diligence and longer decision timelines.
Notwithstanding these challenges, demand remains relatively strong for premium properties in A-grade suburbs such as Hawthorn, Canterbury, Armadale, and Brighton, particularly where homes offer:
Furthermore, Melbourne’s market is expected to continue modest growth from now through into 2026, particularly for well-located, high-quality stock – pointing to a steady rather than spectacular trajectory following the post-pandemic surge.
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. This uplift signals a growing cohort of high-net-worth buyers, often linked to business ownership, intergenerational wealth or lifestyle-driven relocations from other states.
This shift is reshaping expectations around price points and product in Brisbane’s river and city-fringe prestige suburbs, bringing it more in line with the country’s traditional luxury strongholds.
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. For high-income buyers, the city is offering both capital growth and relative affordability compared with the east coast.
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. That value gap is increasingly influential for mobile buyers weighing up prestige options across capitals.
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,” King said.
International and expat purchasers remain active in tightly held prestige enclaves, especially around Sydney Harbour and Melbourne’s blue-chip inner-east.
While momentum has eased from the boom years, Australia’s prestige residential sector continues to demonstrate resilience, and remains a key barometer of wealth, confidence, and global demand for local bricks and mortar.
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