SCARCITY AND STATUS DRIVE AUSTRALIA’S HIGH-END PROPERTY BOOM
Despite a volatile year for the broader housing sector, Australia’s luxury market continues to outpace expectations — but not every city is sharing in the spoils.
3 min
Australia’s top-tier property market has not only held its ground but surged ahead, outperforming median market trends over the past decade.
According to Ray White’s Luxury Market Report 2025, demand for prestige homes with location, character, and uniqueness has fuelled long-term price growth, with Sydney and Brisbane emerging as key players in the nation’s high-end housing boom.
While the broader property market has faced its share of turbulence, the report reveals that luxury homes, particularly those in tightly held or lifestyle-rich areas, are proving to be recession-proof investments.
Prestige Properties Outperform the Median
Ray White’s data shows that over the past decade, luxury house prices have grown 84%, compared to 70% growth in median-priced houses. Luxury apartments, too, posted significant gains — up 58% over the same period, outpacing the 31% growth seen in median units.
This upward trajectory highlights what affluent buyers have long known: scarcity and quality always command a premium.
“Luxury buyers are motivated by lifestyle and legacy — not just returns,” the report states. “They seek homes with architectural character, privacy, exclusivity and proximity to amenities. And increasingly, they’re willing to pay for uniqueness.”
2023: An Unusual Dip for Luxury
In a rare deviation, 2023 marked the first time in ten years that the median market outperformed the luxury market. This was attributed in part to tighter credit conditions, a cautious global investment climate, and a flight to perceived value in the lower-priced brackets.
But Ray White analysts believe this was a temporary recalibration rather than a trend reversal.
“Across the long-term horizon, prestige continues to outperform,” the report concludes. “The recent dip was more reflective of macroeconomic sentiment than a fundamental shift in demand for luxury.”
Sydney Still Leads — But Brisbane and the Gold Coast Are Rising
Unsurprisingly, Sydney remains the juggernaut, commanding 64% of all national luxury house sales and 51% of unit sales. Harbour views, limited supply and generational wealth underpin its continued dominance.
But perhaps the most compelling story of 2025 is Brisbane’s ascent. For the first time, luxury house and apartment prices in Queensland’s capital have crossed the $1 million threshold, and buyer activity shows no signs of slowing.
Migration from southern states, lifestyle appeal, and the impending 2032 Olympics are all contributing to the city’s new prestige identity.
“Brisbane is no longer the underdog,” the report says. “Buyers from Sydney and Melbourne are increasingly seeing it as a value play — and that’s driving demand for luxury stock.”
The Gold Coast, meanwhile, has quietly expanded its market share in the luxury unit space by 9%, thanks to surging demand from downsizers and international buyers. Waterfront apartments and branded residences are proving particularly hot.
Melbourne’s Prestige Market Contracts
In contrast to the upbeat figures from Queensland and New South Wales, Melbourne has experienced a notable retreat. The city’s share of luxury unit sales has fallen 4%, and luxury house sales have dropped 12%.
While the report stops short of sounding alarm bells, it attributes Melbourne’s cooling to shifting lifestyle priorities, post-pandemic relocation patterns, and ongoing population churn.
“Melbourne’s prestige market isn’t declining — it’s simply being rebalanced,” the report notes. “But with the right architectural product and location, the appetite is still there.”
The New Luxury: Character, Lifestyle, and Privacy
More than ever, luxury buyers are seeking differentiation — properties that offer not just size or finishes, but a distinctive story. Think: heritage homes with contemporary restorations, homes with water access or panoramic views, and penthouses in boutique developments rather than high-density towers.
Homes that stand out are commanding serious premiums — often well above suburb medians — especially in traditionally non-prestige postcodes.
“The days of ‘McMansions’ being considered luxury are over,” the report adds. “Modern buyers want soul, not just square footage.”
The Verdict: Scarcity Drives Value
Whether it’s a terrace in Paddington, a penthouse in Newstead, or a vineyard in the Adelaide Hills, the message from the Ray White Luxury Report is clear: when it comes to high-end real estate, scarcity is king.
As buyers seek long-term value and lifestyle investments, the prestige market is expected to remain resilient, particularly in locations with strong infrastructure, lifestyle appeal, and development restrictions that limit supply.
In a world of economic uncertainty, luxury real estate is increasingly being seen not just as an asset, but as a form of security, both financial and emotional.
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Hospitality entrepreneurs Bruce and Chyka Keebaugh have set a new price benchmark for apartment living in Richmond with their purchase of a Carmine House penthouse.
2 min
Leading Australian development manager Fortis has secured a landmark off-the-plan sale at Richmond Square, with high-profile hospitality entrepreneurs Bruce and Chyka Keebaugh purchasing a 550sqm penthouse residence in Carmine House, establishing a new price benchmark for apartment living in Richmond.
The purchase underscores the continued demand for premium, amenity-rich residences in Melbourne’s inner east.
The transaction marks a significant milestone for the $330 million mixed-use precinct, reinforcing buyer appetite for integrated, lifestyle-led developments.
Richmond Square comprises two residential offerings – Carmine House and Wiltshire House – alongside a 57-room boutique hotel, strata office space and a curated mix of retail and lifestyle operators.
As part of Carmine House, residents have access to hotel-style amenities and services, including concierge, housekeeping, dry cleaning and in-residence food and beverage delivery.
Best known for building The Big Group into one of Australia’s leading luxury hospitality and events businesses, the Keebaughs were drawn to the precinct’s integrated lifestyle offering and its proximity to Melbourne’s hospitality, cultural and sporting precincts, while remaining well connected to the Mornington Peninsula, where they spend much of their time.
As well, Chyka is well known to Australian audiences as one of the original stars of The Real Housewives of Melbourne, appearing across three seasons of the hit reality series.
Alongside her business ventures with Bruce, she has built a public profile as a lifestyle authority, authoring two books on home and entertaining, Chyka Home and Chyka Celebrate.
“We weren’t simply looking for a luxury apartment,: the couple said. “We were looking for a home that delivers an exceptional lifestyle every day. The combination of design, walkability, security and the broader precinct vision for the broader precinct immediately stood out.”
Jordan Winada, Head of Acquisitions (Commercial) Victoria at Fortis, said the result highlights evolving priorities at the top end of the market.
“This sale reinforces that premium buyers are prioritising the complete lifestyle experience,” says Winada.
“They’re increasingly looking beyond the apartment itself and assessing the quality of the surrounding neighbourhood as well.”
Sean Cussell, Director at Christie’s International Real Estate Victoria, who negotiated the transaction, said the result reflects the lack of comparable product at this level of the market.
“There’s simply no direct comparison for this in Richmond. It’s not just an apartment; it’s part of a fully integrated precinct combining residential, hotel, workplace and lifestyle amenity,” Cussell said.
“Buyers are increasingly assessing the broader offering, from amenity and walkability to service and convenience. Projects that deliver a complete lifestyle experience continue to outperform.”
The sale contributes to Fortis’ strong national performance, with the business recording more than $124 million in sales since March, the last three all record-breaking penthouse sales across the country, reflecting sustained momentum across its portfolio and continued appetite for premium, design-driven developments.
This follows Fortis’ recent record-breaking Ruby House penthouse sale in Sydney’s Double Bay, which set a new benchmark for apartment living in the suburb and underscores the strength of demand at the ultra-premium end of the market.
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