Waterfront Homes Surge Ahead as Australia’s Ultimate Luxury Asset
New research reveals absolute waterfront properties commanding soaring premiums and unmatched buyer demand across the East Coast.
3 min
Australia’s most coveted real estate isn’t found in penthouses, trophy suburbs or architectural showpieces. It’s found on the water’s edge.
New analysis shows that absolute waterfront homes continue to outperform the wider prestige market, with buyers prioritising lifestyle, wellness and long-term security, firmly placing beachfront, harbourfront and riverfront properties in a class of their own.
According to new data from McGrath’s The Waterfront Advantage report, waterfront homes across Australia now command an average 86 per cent premium over comparable inland properties.
Sydney leads the increase at 122 per cent, followed by the Gold Coast at 82 per cent, Brisbane at 59 per cent and Melbourne at 43 per cent. All major cities have seen premiums rise over the past two years, underscoring the enduring power of a blue-chip waterfront position.
A Market Defined by Scarcity and Lifestyle Shifts
Several drivers sit behind this sustained strength.
The scarcity of absolute waterfront land, combined with limited turnover, has long kept supply tight. But in recent years, buyer appetite has surged as Australians place greater value on wellness, nature, and the quality of time spent at home.
The research notes that even in uncertain economic periods, prestige waterfront properties remain “reliable investments” thanks to their strong marketability and ease of repositioning within a portfolio. These homes are sought-after for both lifestyle and legacy value.
Absolute Waterfront Outperforms All Other Positions
Not all waterfront locations carry equal weight. In the year ending Q3 2025, super-prestige sales on the absolute waterfront rose 6 per cent, while waterfront reserve properties fell 30 per cent, and opposite-waterfront homes dropped 34 per cent. Premium buyers want direct frontage, and they are increasingly decisive when the right property comes onto the market.
Queensland continues to dominate East Coast waterfront activity, accounting for 58 per cent of all waterfront super-prestige sales, ahead of NSW at 38 per cent.
Victoria has remained consistent at around 9 per cent. Over the past five years, Barangaroo topped the charts for absolute waterfront apartment sales (73 sales), while Mosman led house transactions (38 sales). Regional standouts included Broadbeach Waters and Noosaville.
Maritime Facilities: The Luxury Buyers Now Expect
For prestige homeowners, proximity to water is only part of the appeal. Increasingly, buyers want direct boating access and exclusive maritime amenities.
The report shows that two-thirds of absolute waterfront sales included at least one maritime facility. Pontoons appeared in 28 per cent of sales, jetties in 26 per cent, and smaller shares featured slipways or moorings.
This reflects Australia’s strong boating culture. More than 900,000 vessels were registered nationally in 2025, with 83 per cent located along the East Coast. Boats between six and eight metres recorded the fastest growth, rising 19 per cent over five years.
Private Beach Access: The Ultimate Luxury Premium
Among all prestige property features, private beach access delivers one of the most substantial price uplifts. These tightly held homes recorded a 71 per cent value increasse in Q3 2025 compared with inland counterparts, up from 44 per cent in 2017.
The report attributes this surge to scarcity, heightened demand during the pandemic and the lasting appeal of privacy and seclusion.
Harbour Homes Still Command the Highest Premiums
Harbour frontage remains Australia’s most valuable waterfront category, delivering a 125 per cent increase over non-waterfront homes.
This is largely driven by Sydney Harbour’s deep waters, natural beauty and globally recognised backdrop. Coastal homes recorded a 93 per cent uplift, while riverfront residences achieved 74 per cent. Canal-front homes held steady at around 40 per cent.
Strong Outlook for 2026 and Beyond
The outlook for premium waterfront homes remains exceptionally strong. With limited supply, sustained buyer demand and a national shift toward lifestyle-led decision-making, absolute waterfront properties are expected to continue outperforming the broader prestige market.
As the report concludes, waterfront homes are not just coveted lifestyle properties; they are “enduring legacy investments” that combine prestige, privacy and long-term financial security.
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The new Brooklyn Tower, a mix of luxury condos and rentals, rises from the historic Dime Savings Bank building.
3 min
Listing of the Day
Location: Downtown Brooklyn, New York
Price: $16.75 million
Boasting 360-degree panoramic views across New York City, this new 92nd-floor penthouse is the highest residence in Brooklyn.
The full-floor apartment stands atop the new Brooklyn Tower, which encompasses 143 condos and 398 rentals in the heart of downtown Brooklyn, said Katie Sachsenmaier, senior sales director, Corcoran Sunshine Marketing Group.
The condos begin on the 53rd floor, and the penthouses begin on the 88th floor. This one, Penthouse 92, is the only full-floor penthouse.
“The building is coming into its own now,” she said. “It feels very busy when you step into the lobby.”
Developed by Silverstein Properties, the building at 85 Fleet Street rises from the historic Dime Savings Bank building, according to a news release.
It was designed by SHoP Architects with interiors curated by Gachot Studios, and it is the borough’s only super tall skyscraper.
Penthouse 92 features custom interiors by Brooklyn-based Susan Clark of design firm Radnor, Sachsenmaier said. “Her selections have made it really beautiful. It feels very warm and inviting.”
Architectural details include 12-foot ceilings, European white oak floors in a custom honey stain, mahogany millwork, bronze detailing and floor-to-ceiling windows.
The eat-in kitchen features Absolute Black stone countertops, an island with seating, oil-rubbed bronze Waterworks fixtures and integrated Miele appliances, according to the listing.
The primary en suite bathroom showcases large-format Honed Breccia Capraia marble. There is also a separate laundry room as well as a wet bar and a butler’s pantry.
The views are spectacular, Sachsenmaier said. “If you’re standing in the living room, you take in the Statue of Liberty and all the way up through Midtown. On a clear day, you can see the planes take off at LaGuardia (Airport).”
Photo: Sean Hemmerle
Moving around the apartment, you see south over the harbor and then north and east over the whole city, she said.
From the front door, “you’re immediately greeted with the expansive living room and the view,” she said. “It’s really the first thing you see.”
The primary suite features a dressing room, multiple walk-in closets, two bathrooms (one with a cedar sauna) and southwest-facing windows, Sachsenmaier said. “You get those really beautiful harbour views.
The amenities will be ready by the end of summer, she said. A Life Time club will occupy the entire sixth and seventh floors, and an outdoor pool deck wraps around the dome of the bank building.
Stats
The 5,891-square-foot home has four bedrooms, five full bathrooms and one partial bathroom.
Amenities
Residents will have access to over 100,000 square feet of exclusive indoor and outdoor leisure spaces.
Fitness company Life Time will manage an array of amenities that include a 75-foot indoor lap pool, outdoor pools, a poolside lounge and atrium, a billiards room, a library lounge, a conference room, a theatre with a wet bar, a children’s playground and playroom and limited off-site parking.
The Sky Park offers an open-air loggia with a basketball court, foosball, a playground and a dog run.
Photo: Gabriel Saunders
Neighbourhood Notes
Downtown Brooklyn is at the centre of a number of neighbourhoods, including Fort Greene, Cobble Hill, Boerum Hill and Brooklyn Heights. The tower has access to 13 subway lines, 11 commuter trains, the city’s ferry network and 22 Citi Bike stations.
“You can walk to Fort Greene Park in less than 10 minutes,” and Dekalb Market Hall, which has a Trader Joe’s, a Target and a food hall, is “right next door,” Sachsenmaier said.
Agent: Katie Sachsenmaier, senior sales director, Corcoran Sunshine Marketing Group
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