Living beside the water has become significantly more expensive, with new research showing Australian waterfront homes now sell for an average 86 per cent more than similar properties located inland.
The latest McGrath research report, The Waterfront Advantage, shows the price gap has widened steadily over the past eight years, driven by scarce coastline, limited stock and sustained demand for homes with direct frontage.
Sydney leads the market with a 122 per cent premium for absolute waterfront homes, the highest uplift recorded across the East Coast.
Melbourne sits at 43 per cent, Brisbane at 59 per cent and the Gold Coast at 82 per cent.
These figures reflect a consistent upward trend in all major cities, supported by long-term growth in prestige waterfront values.
Strong premium growth across all markets
The report also details how the waterfront premium has strengthened over time.
Sydney has moved from an 86 per cent uplift in 2017 to 122 per cent in 2025, while Brisbane has risen from 42 per cent to 59 per cent.
The Gold Coast has increased from 62 per cent to 82 per cent, and Melbourne from 31 per cent to 43 per cent.
This pattern highlights the sustained appeal of homes with direct frontage and the limited availability of blue-ribbon shoreline.
Private beach access attracts the strongest uplift
Homes with private beach access continue to attract significant premiums, rising from a 44 per cent uplift in 2017 to 71 per cent in 2025.
These properties remain tightly held and are rarely offered to the market, which contributes to their pricing strength.
Harbour frontage commands the highest premium at 125 per cent, followed by coastal homes at 93 per cent, riverfront at 74 per cent and canal-front homes at 40 per cent.
Sydney Harbour remains the most influential factor behind the top-tier uplift due to its setting, deep sheltered waters and proximity to urban amenities.
Sales activity concentrated in Queensland and NSW
Across the 12 months to Q3 2025, there were 932 super-prestige sales on the East Coast, with almost one in three located on the waterfront.
Queensland held 58 per cent of all waterfront sales, followed by NSW at 38 per cent, while Victoria maintained about 9 per cent.
The number of absolute waterfront homes sold rose 6 per cent over the year, contrasting with a 30 per cent fall in waterfront reserve sales and a 34 per cent drop in opposite-waterfront homes.
Lifestyle motivations remain a strong driver
The report links the continued strength of the sector to lifestyle preferences that have become more pronounced since the pandemic.
Buyers remain drawn to open spaces, direct access to the water, privacy and the ability to spend more time at home without compromising on amenity.
Maritime facilities enhance this appeal; two-thirds of absolute waterfront homes sold in 2025 included at least one facility, such as a jetty, pontoon, mooring or slipway. Pontoons were the most common, followed by jetties.
Suburbs leading the market
Barangaroo recorded the highest number of waterfront apartment sales over the past five years, with 73 transactions.
Mosman led the house category with 38 sales.
In regional areas, Broadbeach Waters topped the list for houses, and Noosa Heads ranked highest for apartments.
With supply limited and demand holding firm, the waterfront premium is expected to remain supported into 2026.
The report notes that Australian buyers have placed greater emphasis on wellness and home-centred lifestyles, suggesting waterfront property will continue to attract attention across the prestige market.
