Luxury apartment ‘rightsizing’ boom reshapes prestige property market

Australia’s prestige apartment market is booming as wealthy homeowners increasingly choose to “rightsize” into luxury apartments rather than remain in large family houses.

New research from McGrath shows the number of prestige apartments sold in 2025 has tripled over the past decade as high-net-worth buyers prioritise lifestyle, security and convenience.

McGrath chief executive John McGrath said the shift reflects a growing preference among affluent Australians for luxury apartment living.

“Prestige apartments have been the strongest market segment in the last few years as high-net-worth individuals choose luxury, security and lifestyle in apartments over houses,” he said.

“Demand has increased dramatically as luxury apartments have gone to a whole new level in design, finishes and amenities.”

Queensland has led the surge in prestige apartment sales, accounting for 43 per cent of East Coast transactions in 2025. New South Wales followed with 41 per cent, while Victoria made up the remaining 16 per cent.

Southeast Queensland leads the trend

Southeast Queensland has become a particularly popular destination for luxury apartment buyers seeking waterfront lifestyles with convenient access to major cities.

Mr McGrath said the region’s beaches and rivers had provided the ideal setting for a new generation of high-end residential developments.

Prices for newly built prestige apartments have also significantly outperformed established units over the past five years. New apartments on the Gold Coast have surged 88 per cent, compared with 60 per cent in Brisbane, 34 per cent in Sydney and 32 per cent in Melbourne.

Apartments getting larger

Developers have responded by building larger apartments with more bedrooms and premium amenities to appeal to affluent downsizers.

McGrath’s national head of research, Michelle Ciesielski, said the emerging rightsizing trend had reshaped the type of apartments being built across Australia.

“After identifying the emerging rightsizing trend in Australia back in 2020, there has been more than double the delivery of apartments with three or more bedrooms, and the average apartment built was one-third larger,” she said.

Hotel-style amenities and premium parking

Buyers are also increasingly seeking features previously associated with luxury hotels, including pools, gyms and high-end shared facilities.

More than two-thirds of residential towers across the CBDs of Sydney, Melbourne and Brisbane now include both a pool and gym.

Parking has also become a major selling point in the prestige apartment market. Research shows Sydney apartments with more than four car spaces command a 62 per cent price premium compared with those with just one space.

Despite strong demand, developers continue to face rising construction costs, labour shortages and higher material prices when delivering new luxury projects.

Even so, McGrath said demand for prestige apartment living is expected to remain strong as wealthy Australians look for sophisticated homes that offer space, security and a lifestyle-driven alternative to traditional houses.