Currently, the market is experiencing an unprecedented surge in prices for prime and super-prime properties, largely driven by limited supply, as there are only so many properties that can be built in the most desirable locations near beaches, bays, and rivers. Homes with unique characteristics, such as exceptional views or proximity to water, are seeing even greater price appreciation.
The Australian luxury home market demonstrated strong long-term growth trends over the past decade (2014 to 2023) with luxury house prices outpacing median prices at 84 per cent compared to 70 per cent and luxury unit prices outpacing median prices at 58 per cent compared to 31 per cent. Notably, Hobart led with a remarkable 122 per cent growth in luxury house prices and a 101 per cent growth in luxury unit prices. 2023 was a unique year though because for the first time in the past decade, median prices grew stronger than luxury prices.
In terms of transaction volume, the luxury home market experienced some notable shifts over the past decade. Melbourne dropped four per cent market share in luxury units and 12 per cent market share in luxury houses, while the Gold Coast emerged as a rapidly growing luxury unit market with a nine per cent increase in market share. Brisbane experienced substantial growth too with both luxury house and luxury unit prices surpassing the million-dollar threshold for the first time. Its luxury transaction growth rate in 2023 was the largest of any major city. Meanwhile, Sydney continues to dominate, accounting for 64 per cent of all luxury house sales nationally and 51 per cent of all luxury unit sales.
Overall, while 2023 saw stronger growth in median prices, the luxury market remains robust, particularly over a 10-year horizon. Regional disparities in growth rates and transaction volumes reflect varying market dynamics across Australian cities.
