The Australian home sector outperforming the rest
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The Australian home sector outperforming the rest

Pandemic fuelled renovations have only strengthened prices at this end of the market

By Bronwyn Allen
Thu, Jan 25, 2024 10:55amGrey Clock 3 min

Luxury houses have experienced a far stronger rate of capital growth than the rest of the market over the past 10 years, according to a historical analysis by Australia’s largest agency network, Ray White. Family houses at the median price point have increased by 78 percent in value over the past decade, while prestige houses priced within the top five percent of homes have doubled in value.

Ray White chief economist Nerida Conisbee said land was a large component of prestige homes’ value and this created stronger rates of capital growth.

There are only so many properties you can build in our most expensive suburbs, which tend to be located close to beaches, bays and rivers,” Ms Conisbee said. Anything with even more unique characteristics that are hard to replicate, such as a view or close proximity to the water, are likely to have increased even further.

Strong renovation activity during and after the pandemic accelerated capital growth.

“Luxury homes have become even more expensive over time as more investment has taken place,” Ms Conisbee said. “And while it is not possible to measure, it is likely a higher proportion of well-located luxury homes have been renovated than the rest of the market and almost certainly true that more has been spent on them.

Luxury apartments have also grown in value at a much higher rate than average units. Ms Conisbee said this indicated the rising popularity of apartment living among wealthy Australians. Developers are increasingly catering to this trend by producing high-quality lifestyle apartments with large floorplans, many luxurious inclusions and access to world-class amenities and services.

Ms Conisbee said prestige home values also had a higher rate of appreciation because Australia’s rich were getting richer.

A recent report from Oxfam has found that the wealth of Australia’s richest people has increased at a rate of $1.5 million per hour since 2020,” she said. “A lot of this wealth has been invested in luxury homes around Australia.

The most expensive homes in Australia

CoreLogic data shows the most expensive suburb in Australia for houses is Bellevue Hill in Sydney, with a median value of $9.73 million. Nearby Point Piper is the most expensive suburb for apartments with a median of $3.32 million. In 2023, Australia’s top five sales occurred in Bellevue Hill, nearby Vaucluse and Hawthorn in Melbourne, ranging from $39 million to $76 million.

In regional Australia, the most expensive suburbs are Sunshine Beach in Queensland with a median house price of $2.38 million, Gerroa in NSW ($2.34 million), Surfers Paradise in Queensland ($2.27 million), Burradoo in NSW ($2.25 million) and Noosa Heads in Queensland ($2.24 million).

During the pandemic, the highest capital growth was seen in the most desirable and expensive regional markets, as wealthy city dwellers bought large lifestyle homes and holiday residences in prime seachange and treechange areas. Last year, this trend reversed, with the greatest capital gains seen in more affordable regional coastal towns, according to a new CoreLogic report released today.

The report shows that 35% of Australia’s regional coastal markets had record-high median values at the end of 2023, despite rising interest rates and cost of living pressures. The study analysed 368 coastal markets located at least 50km from the nearest capital city to reveal the top 20 gainers. All of these suburbs had a median value well below $1 million and Western Australia dominated the list.

CoreLogic Research Director Tim Lawless said: “The performance of those with the largest gains and the highest growth rates are not the glamorous hot spots that rose to prominence during COVID. The past 12 months has seen markets that offer a combination of value and lifestyle attributes, such as commuting distance to a major city, great beaches, and quality housing at a more affordable price point, outperform more well-known areas.

“Suburbs in areas such as Western Australia and more northern regions of Queensland where it’s still possible to make a seachange for less than $1 million were the strongest performers last year. Although home values in these regions are mostly at record highs, they remain relatively affordable for seachangers selling out of more expensive metro markets.”

Highest annual capital gains in 2023 – regional coastal towns

1. Bouvard, Mandurah, WA (up 28% to record high of $560,138)
2. Augusta, Bunbury, WA (up 23.2% to record high of $717,573)
3. San Remo, Mandurah, WA (up 22.9% to record high of $678,940)
4. Halls Head, Mandurah, WA (up 22.8% to record high of $694,473)
5. Secret Harbour, South West Perth, WA (up 22.4% to record high of $699,469)
6. Golden Bay, South West Perth, WA (up 22.2% to record high of $613,265)
7. Mulambin, Central QLD, (up 22.1% to record high of $822,553)
8. Usher, Bunbury, WA (up 21.3% to record high of $418,780)
9. Silver Sands, Mandurah, WA (up 21.1% to record high of $592,355)
10. Singleton, South West Perth, WA (up 20.4% to record high of $657,632).

Source: CoreLogic



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A two-level penthouse atop Burleigh Heads’ award-winning Norfolk development has hit the market for the first time, offering sweeping ocean views and a private rooftop pool.

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One of Burleigh Heads’ most architecturally significant penthouses has hit the market for the first time since its completion five years ago.

The listing provides the first real look inside the two-level penthouse crowning Norfolk, Forme’s award-winning Goodwin Terrace development which was completed in 2021.

The penthouse sold off the plan for $5.35 million around 18 months before construction was completed and has remained tightly held ever since, meaning its resale offers the first insight inside one of Burleigh’s most architecturally impressive apartment buildings.

The four-bedroom residence spans approximately 461 sqm, comprising 276 sqm of internal living and a further 185 sqm of outdoor space across its two levels.

Its position on Goodwin Terrace gives the penthouse one of the Gold Coast’s comparatively rare true north-to-water aspects, with views stretching from Burleigh Headland along the coastline towards the towers of Surfers Paradise. Floor-to-ceiling glazing has been used extensively throughout the residence, framing the ocean outlook from almost every principal living space.

Forme, led by Managing Director David Calvisi, acquired the prime 1,012 sqm site, formerly home to The Fish House restaurant, before developing Norfolk as the first new multi-residential project delivered on Goodwin Terrace in around three decades.

The strength of the location was clear. The more unusual proposition was the building itself.

Forme appointed Koichi Takada Architects to design the 10-level development, marking the practice’s first Gold Coast building. Rather than treating Norfolk’s beachfront setting as a backdrop, Takada used the Norfolk Island pines along the foreshore as the basis for the architecture.

Curved balcony slabs and horizontal battens create the building’s distinctive layered exterior. Sliding timber screens can be repositioned for privacy, shade and protection from the coastal conditions, continuously changing the appearance of the façade.

Takada has compared the concept to the structure of a pinecone, whose overlapping layers open and close according to environmental conditions. In an earlier account of the project, the architect said the objective was to celebrate the site and create a stronger connection between the residences and the elements outside.

The response helped turn Norfolk into an architectural marker for Burleigh’s transformation.

Norfolk comprises 12 half-floor apartments, two dual-level penthouses and one two-level beach house. MIM Design created the interiors, Hutchinson Builders undertook construction and Plus Architecture supplied documentation services for the builder.

Inside Residence 901, MIM Design’s restrained palette brings together timber, natural stone and tailored joinery without competing with the outlook. Travertine surfaces have subsequently received paint-protection film, while the home is being offered with a custom furniture package.

A private lift opens directly into the main living level. Living, dining and media spaces are arranged along the view, accompanied by a concealed bar and a broad north-eastern terrace.

The kitchen has an oversized stone island, European appliances and bespoke cabinetry, supported by a butler’s pantry and separate scullery. An integrated RTI system controls lighting, climate, fans, security, entertainment and audio using in-home touchscreens or a smartphone application.

The principal suite occupies a private wing with ocean views, a dressing room and ensuite. Two additional bedrooms have their own ensuites, while a fourth bedroom can operate as an executive study. A concealed Murphy bed allows that room to accommodate guests when required.

The rooftop is what moves the residence beyond even a generously proportioned beachfront apartment.

Reserved exclusively for the penthouse, it contains a heated lap pool, landscaped gardens, several entertaining areas and an alfresco kitchen with a built-in barbecue. An integrated outdoor cinema allows the rooftop to function as an open-air screening room above the Pacific.

Four side-by-side secure car spaces, dedicated electric-vehicle charging and private storage address practical constraints often encountered by prestige-apartment buyers. The parking allocation is particularly relevant for owners moving from a large house or maintaining a car collection.

Norfolk’s wider amenities include a beach-club-style residents’ area, swimming pool, gymnasium and sauna. Burleigh Beach is directly opposite, while James Street, Burleigh Head National Park and restaurants including Rick Shores and The Tropic are within walking distance.

The building’s reputation has also moved well beyond its beachfront address. Norfolk received both jury and popular-choice honours in the mid-rise multi-unit housing category at the 2022 Architizer A+Awards. It won a Queensland Australian Institute of Architects award for multiple housing and was named the 2022 Medium-Density Residential Development of the Year by The Urban Developer. Further recognition came from the Master Builders awards and Architecture MasterPrize.

Calvisi later said the aim with Norfolk was to produce something the Gold Coast had not previously seen.

The penthouse is being marketed through expressions of interest by Dean Pegoraro of Whitefox Gold Coast.

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