INDUSTRY NEWSNationalReal Estate News

It now costs $2.52 million to buy a luxury home

The entry price for luxury homes in Australia has surged to $2.52 million, marking a dramatic 72 per cent increase from a decade ago when premium properties started at $1.49 million, according to new research.

Ray White’s Australia’s Luxury Report 2025 found that there were changing definitions of luxury, different buyer profiles, and emerging growth markets across the country in the luxury market.

“More than just a price point, luxury represents the pinnacle of craftsmanship, attention to detail, and scarcity within a market,” Ray White Senior Data Analyst Atom Go Tian said.

“It varies dramatically by location; what’s considered standard in Sydney might be exceptional elsewhere in Australia,” he said.

The report confirms Sydney remains Australia’s most expensive market, with luxury properties starting at $4 million. 

However, in a surprising shift, the Gold Coast has claimed second place at $2.6 million, overtaking Melbourne’s $2.49 million entry point.

Mr Go Tian said that the concept of luxury continues to evolve across Australia’s diverse property markets.

“True luxury in real estate combines premium materials, architectural distinction, prime location, and limited availability,” he said.

“As our data reveals, the concept of luxury continues to transform across Australia’s diverse regions, shaped by changing demographics, wealth distribution, and lifestyle preferences.”

The research revealed that $663 million changed hands across just 20 transactions, providing insights into where Australia’s wealthiest choose to live.

“Eastern Sydney continues to be the place to be, with the Double Bay-Bellevue Hill and Rose Bay-Vaucluse-Watsons Bay enclaves accounting for more than half of all top transactions,” Mr Go Tian said.

“Bellevue Hill alone appears five times on the list, while Vaucluse claims four spots. Beyond Sydney’s harbour views, Melbourne’s old-money suburbs of Toorak and Brighton each secured positions, while lifestyle destinations like Noosa Heads, Byron Bay, and Portsea also featured prominently.”

The report highlighted “Alcooringa,” a Spanish Mission-style residence in Bellevue Hill, as the standout transaction, commanding $80 million – exceeding its closest competitor by $30 million.

The profile of luxury buyers has evolved significantly, according to the research.

“Today’s ultra-luxury property buyers are primarily self-made business owners, especially those who built digital and tech companies, rather than corporate executives who once dominated this market,” Mr Go Tian said.

“The wealth behind these purchases now comes from a much wider range of industries, with online businesses and technology ventures leading the way.”

While buyers in their late 40s to 50s continue to form the core market, the report noted increasing participation from millennial entrepreneurs, particularly those who have built wealth through digital businesses.

Perth has emerged as a standout performer in the luxury segment, with all three of its premium suburbs ranking in the top 10 nationwide for price growth, led by Nedlands-Dalkeith-Crawley at 8.8 per cent.

In contrast, Melbourne’s luxury market shows signs of cooling, with several premium suburbs experiencing price declines – a stark contrast to Queensland’s heated market.

The report also revealed that wellness features have become a critical component of luxury properties, reflecting changing priorities among affluent buyers.

Properties with comprehensive wellness features now command price premiums of 10-25 per cent, reflecting a fundamental shift in what constitutes luxury in today’s market. 

Sustainable elements and indoor-outdoor integration are now considered essential rather than optional.

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Rowan Crosby

Rowan Crosby is a senior journalist at Elite Agent specialising in finance and real estate.