Australia’s luxury housing market is accelerating in sharply different directions, with SA2-level* data revealing standout performance in Perth and increasingly strong momentum across parts of Queensland, while Sydney consolidates and Melbourne slowly rebuilds.
Ray White Economist Atom Go Tian says the market is now defined by extreme localisation rather than broad national cycles.
“Luxury is anything but generic. At its most specific, it’s a single lot on a single street in a single suburb; a location so particular that no two are alike,” he said.
The strongest performance is emerging in Perth, where luxury suburbs are delivering sustained, double-digit growth.
City Beach has surged 18 per cent over the past 12 months, underpinned by strong state economic conditions, ongoing population inflows and limited prestige supply.
Claremont is up 17 per cent to $2.78 million, while Mosman Park and Peppermint Grove has climbed 16.9 per cent to $3.03 million.
“Perth is in its third consecutive year of double-digit growth in the luxury space, a run long enough that it no longer needs explaining as a post-pandemic effect or a commodity boom by-product,” said Mr Go Tian.
“It’s simply where Perth luxury is now.”
The result is also narrowing the long-standing gap between Perth and Sydney luxury prices, reshaping perceptions of relative value across the national market.
Queensland is now showing similarly strong momentum, with broad-based growth emerging across Brisbane and the Gold Coast. Newstead–Bowen Hills has lifted 11.2 per cent to $2.88 million, Ascot is up 10.9 per cent to $2.97 million, and Hamilton has risen 10.8 per cent to $2.76 million.
On the Gold Coast, growth is spreading across multiple prestige enclaves rather than isolated hotspots. Surfers Paradise South, Mermaid Beach–Broadbeach and Main Beach all recorded gains between 8.6 and 9.7 per cent, with Main Beach now at $3.86 million.
The pattern mirrors Perth’s earlier stage of expansion, suggesting Queensland luxury is entering a more powerful acceleration phase driven by multiple suburbs moving in sync.
Sydney remains steady at the top end of the market, but without the same momentum seen in Perth and Queensland.
Dover Heights, Double Bay, Darling Point and Bondi–Tamarama–Bronte all recorded annual growth between 5.2 and 5.5 per cent.
While the pace is more measured, Sydney’s absolute price levels remain unmatched, with medians between $5.11 million and $5.99 million.
Even modest percentage growth translates into significant dollar gains, reinforcing its position as the country’s premium benchmark.
“Sydney’s luxury market is not weakening. It’s consolidating at a price level that still commands a significant premium over every other major city, and last year’s prediction that prestige buyers might rediscover Sydney’s relative value appears to be playing out, if gradually.”
Melbourne is showing early signs of recovery after a softer period, although momentum remains subdued compared to other capitals.
Surrey Hills (West)–Canterbury has risen 3.6 per cent to $2.92 million, Balwyn is up 3.2 per cent to $3 million, and Kew South has increased 2.8 per cent to $3.12 million.
While the turnaround is clear, Melbourne remains the slowest-growing major luxury market nationally, still lagging behind the pace set in other capital cities.
Canberra’s luxury market remains highly constrained, with only Forrest exceeding the $2.75 million threshold.
Mr Go Tian said the suburb has a median of $4.24 million and recorded 4.5 per cent growth, reflecting limited supply rather than broad-based expansion.
“There’s simply very little supply at this price point, and what exists is moving steadily upward.”
*SA2 (Statistical Area Level 2)
SA2 is a geographic classification used by the Australian Bureau of Statistics (ABS) to group suburbs and local neighbourhoods for statistical reporting. Each SA2 typically represents a community of around 3,000 to 25,000 people and is used to provide detailed local-level data that sits below broader city and regional averages.