The Australian home sector outperforming the rest
Pandemic fuelled renovations have only strengthened prices at this end of the market
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
Source: CoreLogic
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A landmark Watsons Bay residence formerly owned by businessman Mark Bouris has returned to the market, bringing one of the harbourside village’s most distinctive homes back into play.
The five-bedroom property at 23 Robertson Place occupies 654 square metres opposite Robertson Park, within footsteps of Watsons Bay Beach, the ferry wharf and the celebrated restaurants lining the foreshore.
Its position places the home at the centre of one of Sydney’s most recognisable harbour villages, yet its substantial proportions, private outdoor areas and garaging give it a degree of separation rarely found so close to the waterfront.
The residence was previously owned by Bouris, the founder of Wizard Home Loans and chairman of Yellow Brick Road. Property records show it last changed hands in November 2013 for $7 million, having sold for $890,000 in 1995.
That 2013 transaction was handled by prestige agent Bill Malouf through Highland Double Bay. Bouris was the vendor when the home last sold.
Architect Malcolm Sholl designed the contemporary residence around a fluid connection between its interiors and outdoor entertaining areas. Extensive glazing draws natural light into the principal rooms, while district views take in the Sydney Harbour Bridge.
Travertine flooring extends through the principal living areas and out towards the terraces, reinforcing the relationship between the home and its coastal setting.
At the centre of the residence is a marble kitchen equipped with Gaggenau gas appliances and an integrated Miele coffee machine. It connects to expansive open-plan living and dining areas designed for both family life and large-scale entertaining.
Five double bedrooms are accompanied by three bathrooms and a guest powder room. Informal living spaces include a home cinema.
Outside, there’s a 23-metre lap pool and an alfresco entertainer’s terrace. Internal access from the garage and accommodation for four cars are especially valuable in the tightly held village location.
The address also carries an unusual fragment of local architectural history. Woollahra planning material identifies portions of an early Victorian cottage dating from about 1839 within the contemporary three-storey residence, placing the property within the wider Watsons Bay heritage conservation area.
The home made headlines for another reason in January 2025, when a Ferrari left the road and struck the property. Two occupants of the vehicle were taken to hospital following the incident.
The Agency’s Ben Collier has a $20 million guide.
Watsons Bay remains one of Sydney’s smallest and most tightly held prestige markets. There have only been two house sales in the suburb so far in 2026. The suburb record was set late last year when yachtie Linda Goddard paid $35.5 million for a Pacific Street waterfront.
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