Economic analysis of
ARCHITECTURAL FEATURES IN AUSTRALIA’S 20 MOST EXPENSIVE HOMES
NERIDA CONISBEE RAY WHITE CHIEF ECONOMIST
What distinguishes Australia’s most exceptional homes? You could ask an architect, who would offer valuable insights on design principles and spatial innovation. Or you could approach it like an economist with data and a spreadsheet, which is precisely what we’ve done, bringing a slightly different perspective.
To do this analysis, we examined the 20 highest-priced properties sold in Australia over the past 12 months using visual and data analytics. This review identified seven key architectural elements that define today’s premium residences.
Key architectural findings
1. INDOOR-OUTDOOR INTEGRATION
(75 per cent prevalence)
High-end disappearing glass wall systems typically require substantial six to seven-figure investments, representing significant capital allocation decisions. In properties with premium views, these systems deliver something that justifies their considerable cost. One Vaucluse property featured an extensive system spanning several metres, demonstrating the importance of planning for view maximisation to boost value in waterfront locations.
The economics here are straightforward: when a property commands a premium price primarily for its location and views, the value of a seamless vista far exceeds implementation costs.
2. MATERIAL CONTRAST AND LAYERING
(85 per cent prevalence)
The mixing of premium materials creates sophisticated visual impact while driving significant price premiums. Our data analysis reveals consistent investment in rare materials, which are seen as a marker of quality in the luxury space. One Point Piper residence featured bathroom walls made from single slabs of Calacatta Viola marble, a costly premium material, paired with custom-milled Tasmanian Blackwood.
These material combinations signify quality, allowing properties to command substantially higher per-square-metre valuations compared to similar properties with standard materials.
3. MULTI-LEVEL FUNCTIONALITY
(90 per cent prevalence)
Looking at how vertical space is used in luxury homes reveals interesting insights about value creation. While average home buyers think in terms of price per square metre, the luxury market thinks about volume, transforming basement levels into premium lifestyle spaces (home theatres, gyms, wellness areas) that generate substantial additional value.
One Bellevue Hill property featured a five-level residence with an entire luxury wellness complex beneath the main living areas, effectively increasing the property’s usable floor area by 42 per cent within the same land footprint. This represents an excellent investment opportunity; converting traditionally lower-valued space into areas that approach the per-square-metre value of above-ground living spaces.
4. ARCHITECTURAL FLEXIBILITY
(65 per cent prevalence)
Adaptable spaces reflect the evolving needs of sophisticated households while delivering long-term value through future-proofing. Premium properties with separate wings that function independently while connected to main living areas provide versatility that appeals to discerning buyers.
A forward-thinking Double Bay residence included what an architect would call “functional elasticity”, spaces that could expand or contract based on needs without major renovation. This approach represents a calculated investment in long-term use, significantly improving resale potential by accommodating everything from multi-generational living to work-from-home arrangements.
5. CLIMATE-RESPONSIVE DESIGN
(80 per cent prevalence)
Climate-responsive design elements represent both environmental consciousness and comfort optimisation. Strategic shading, adjustable facades, and cross-ventilation features require substantial upfront investment but deliver impressive long-term efficiency gains and enhanced living environments.
A Mosman property featured an automated louver system that adjusts throughout the day based on sun position, wind speed, and temperature, with an upfront cost in the mid-six figures. The resulting energy efficiency reduced operating costs by approximately two-thirds compared to conventional climate control systems. This demonstrates how buyers are increasingly factoring lifecycle costs into purchase decisions, recognising operational efficiency as a significant value component.
6. CURVED ARCHITECTURAL ELEMENTS
(60 per cent prevalence)
Curved architectural elements reveal an appreciation for design artistry in luxury homes. Curved walls, arched doorways, and organic shapes typically increase construction costs by about a third to nearly half compared to straight-line equivalents, yet remain prevalent in premium properties due to their distinctive visual impact.
One particularly impressive Rose Bay home featured a spiral staircase enclosed in a curved glass wall, representing a seven- figure investment. While this might seem excessive, cost-benefit analysis indicates these investments are economically rational when they establish unique property characteristics that reduce direct market comparisons and create memorable architectural experiences that drive premium pricing.
7. INTERIOR LIFESTYLE AMENITIES
(100 per cent prevalence)
Premium interior amenities enhance the living experience in Australia’s finest homes. When home theatres rival commercial cinemas and wellness areas outshine exclusive spas, these residences provide unprecedented convenience and privacy value.
These specialised rooms from professional-grade home theatres to comprehensive wellness suites with saunas, steam rooms, and treatment areas represent thoughtful investments in creating complete living environments. The universal presence of these features across all analysed properties indicates strong market consensus on their value contribution, making them essential components for properties competing in this market segment.
