What is LUXURY?
ATOM GO TIAN RAY WHITE SENIOR DATA ANALYST
Throughout Australia, luxury real estate represents far more than just a price point - it embodies an evolving standard of quality, design, and exclusivity that continues to redefine itself across different markets.
Luxury is an evolving standard composed of quality, design, and exclusivity. What qualifies as luxury today may become commonplace tomorrow as tastes and markets shift. More than just a price point, luxury represents the pinnacle of craftsmanship, attention to detail, and scarcity within a market. It varies dramatically by location; what’s considered standard in Sydney might be exceptional elsewhere in Australia.
True luxury in real estate combines premium materials, architectural distinction, prime location, and limited availability. It reflects both the financial threshold of the top five per cent of properties in a market and the intangible qualities that make a home exceptional. 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.
From a national perspective, luxury properties in Australia now command prices exceeding $2.52 million, representing a 72 per cent increase from $1.49 million a decade ago.
However, standards for luxury vary significantly across major cities, with Sydney maintaining the highest threshold at $4 million. What qualifies as luxury elsewhere in Australia often sits closer to Sydney’s median price range.
The most dramatic shifts have occurred in South East Queensland’s markets over recent years. Gold Coast luxury house prices have more than doubled over the past decade, rising from $1.14 million to $2.6 million, now exceeding Melbourne. Sunshine Coast has shown the highest growth rate among all major markets, while Brisbane has seen luxury thresholds jump from under $1 million to over $2 million. Together, these three Queensland regions represent Australia’s fastest-growing luxury real estate sector.
In contrast, Melbourne’s luxury house prices grew by just 47 per cent over ten years, from $1.6 million to $2.49 million, and notably decreased over the past year - the only major city to experience such a decline. This cooling trend stands in stark contrast to the heated Queensland market.
Looking to the west, Perth shows exceptional recent potential with a 10 per cent increase in luxury house prices over the past year. Growth remained muted during the first half of the decade but has accelerated dramatically in recent years. Similarly, Adelaide has demonstrated strong momentum with six per cent growth in the past year and a doubling of prices over the decade. Adelaide’s luxury threshold could reach $2 million before Canberra, which has experienced more moderate growth. Darwin remains the least developed luxury market, with high-end properties still priced below $1 million.
It’s worth noting that only two of Australia’s nine major cities, Sydney and Gold Coast, maintain luxury house prices above the national threshold of $2.5 million, highlighting how the luxury market remains concentrated in select locations. This concentration underscores the exclusivity that defines true luxury.
From a national perspective, luxury properties in Australia now command prices exceeding $2.52 million, representing a 72 per cent increase from $1.49 million a decade ago.
LUXURY HOUSE PRICE GROWTH IN AUSTRALIA’S MAJOR CITIES
House prices in the 95th percentile for March 2025 v 2015
■ 2025 ■ 2015
SYDNEY
GOLD COAST
MELBOURNE
SUNSHINE COAST
BRISBANE
PERTH
CANBERRA
ADELAIDE
DARWIN
AUSTRALIA
Source: Neoval
Turning to apartments, luxury units in Australia start at $1.6 million, a 52 per cent increase from the $1 million threshold in 2015.
Compared to houses, the luxury unit market shows more restrained growth outside of Queensland’s coastal regions. Sydney leads with luxury units starting at $2.2 million, while Gold Coast and Sunshine Coast are the only other cities with luxury unit thresholds exceeding $2 million. Given the explosive growth in these Queensland coastal markets, it’s not difficult to imagine a future where South East Queensland becomes Australia’s premier luxury apartment destination.
Melbourne’s luxury unit market has shown sluggish 38 per cent growth over ten years and recently experienced price decreases, mirroring the trend in its house market. Brisbane, while lagging behind its Queensland coastal neighbours, shows promising recent growth at 7.5 per cent annually. Perth leads in one-year unit price growth at 10.4 per cent, though its long-term performance has been relatively weak compared to eastern markets.
Canberra’s luxury unit market has grown to $1.15 million, up 53 per cent over the decade, though recent growth has stalled at just 0.1 per cent. Adelaide’s luxury units have reached the same $1.15 million mark with stronger momentum, showing 59 per cent ten-year growth and a healthy eight per cent rise in the past year. Darwin remains an outlier as the only city where luxury unit prices have fallen over the decade, dropping 11 per cent to $688,000, with only minimal recovery of 1.1 per cent last year.
Luxury units in Australia start at $1.6 million, a 52 per cent increase from the $1 million threshold in 2015.
LUXURY UNIT PRICE GROWTH IN AUSTRALIA’S MAJOR CITIES
Unit prices in the 95th percentile for March 2025 v 2015
■ 2025 ■ 2015
SYDNEY
GOLD COAST
MELBOURNE
SUNSHINE COAST
BRISBANE
PERTH
CANBERRA
ADELAIDE
DARWIN
AUSTRALIA
Source: Neoval
