Cheap homes rising in value faster than prestige homes

Cheaper homes in the lower price quartile of market are growing in value at a faster pace than homes in the upper quartile, according to new CoreLogic figures.

Research director Tim Lawless said the upper quartile typically leads housing market cycles into their upswings and downturns. This occurred in 2023 when higher priced homes outperformed for the first seven months of the year as the market rebounded from its 2022 slump, which was caused by rising interest rates from May.

Then price growth among expensive homes slowed down, and cheaper properties began appreciating at a faster pace through the second half of the year, and now into 2024. Mr Lawless said the lower quartile in every capital city property market recorded superior growth to the upper quartile over the past three months.

At a national level, lower priced homes grew by 2.4 percent, middle priced homes appreciated 1.7 percent and upper quartile properties rose 0.6 percent. The market’s lower quartile is defined as homes within the bottom 25 percent of values, the middle quartile represents 50 percent of the market with medium–range prices, and the upper quartile is the most expensive 25 percent of homes.

“This trend is most evident in Sydney, Melbourne and, to a lesser extent Brisbane, where upper quartile values clearly led the 2023 upswing through the first half of the year,” Mr Lawless said. “The trend hasn’t been evident in Perth or Adelaide where lower quartile home values have consistently recorded a faster pace of capital gains through 2023 and the first two months of 2024,” he said.

Perth continues to record the highest capital growth overall among the capital cities. Home values in the Western Australian capital rose 5.2 percent over the three months to February and are up 18.3 percent over the past year. Perth offers exceptional value to owner occupiers and investors compared to the big East Coast capitals. Its median house price is $718,560 compared to $1,395,804 in Sydney, $942,779 in Melbourne and $899,474 in Brisbane.

Mr Lawless added that Perth had the fastest pace of price growth among lower quartile homes of all the capital cities over the past three months. There was a 2.2 percent difference between the growth rate of lower priced homes and upper priced homes. A noticeable spike in East Coast investors purchasing in Western Australia over the past year may be contributing to this superior pace of growth, given most investors target lower priced properties for affordability and stronger rental yields.

Other data just released by CoreLogic reveals the total value of Australian residential real estate increased to an estimated $10.4 trillion at the end of February. This is a new record high, up from $10.3 trillion in January. By comparison, Australian superannuation is worth $3.7 trillion and the ASX share market is worth $3.1 trillion.

Italian fine wines are gaining momentum among Australian collectors and drinkers, with new data from showing a surge in interest driven by value, versatility and a new generation of producers.

Long dominated by France, the premium wine conversation is beginning to shift, with Italy increasingly positioned as a compelling alternative for both drinking and collecting.

According to Langtons, the category is benefiting from a combination of factors, including its breadth of styles, strong food affinity and more accessible price points compared to traditional European benchmarks.

“Italy has always offered fine wine fans an incredible range of wines with finesse, nuance, expression of terroir, ageability, rarity, and heritage,” said Langtons General Manager Tamara Grischy.

“There’s no doubt the Italian wine category is gaining momentum in 2026… While the French have long dominated the fine wine space in Australia, we’re seeing Italy become a strong contender as the go-to for both drinking and collecting.”

The shift is being reinforced by changing consumer preferences, with Langtons reporting increased demand for indigenous Italian varieties and lighter, food-first styles such as Nerello Mascalese from Etna and modern Chianti Classico.

This aligns with the broader rise of Mediterranean-style dining in Australia, where wines are expected to complement a wider range of dishes rather than dominate them.

Langtons buyer Zach Nelson said the category’s versatility is central to its appeal.

“Italian wines often have a distinct, savoury edge making them an ideal pairing for a variety of cuisines,” he said.

The move towards Italian wines also comes as prices for traditional French regions continue to climb, particularly in Burgundy, prompting collectors to look elsewhere for value without compromising on quality.

Italy’s key regions, including Piedmont and Etna, are increasingly seen as offering that balance, with premium wines available at comparatively accessible price points.

Nelson said value is now a defining factor for buyers in 2026.

“Value is the key driver for Australian fine wine consumers… Italian wines are offering exactly that at an impressive array of price points to suit any budget,” he said.

The category is also proving attractive for newer collectors, offering what Langtons describes as “accessible prestige” and a more open entry point compared to the exclusivity often associated with Bordeaux.

Wines such as Brunello di Montalcino and Nebbiolo-based expressions are increasingly being positioned as entry points into cellar-worthy collections, combining ageability with relative affordability.

At the same time, a new generation of Italian producers is reshaping the category, moving away from heavier, oak-driven styles towards wines that emphasise site expression and vibrancy.

“There’s definitely a ‘new guard’ of Italian winemaking… stripping away the makeup… to let the raw, vibrating energy of the site speak,” Nelson said.

Langtons is also expanding its offering in the category, including exclusive access to wines from family-owned producer Boroli, alongside a broader selection spanning Piedmont, Veneto, Sicily and Tuscany.

The company will showcase the category further at its upcoming Italian Collection Masterclass and Tasting in Sydney, featuring more than 50 wines from 23 producers across four key regions.

For collectors and drinkers alike, the message is clear: Italy may have been overlooked, but it is no longer under the radar.

Cheap homes rising in value faster than prestige homes

Buyers are prioritising affordability amid high interest rates

Italian wines are emerging as a serious contender for Australian collectors, offering depth, rarity and value as French benchmarks continue to climb.