Group Board member
Melbourne’s luxury property market has remained resilient throughout 2025, defying broader global headwinds and economic uncertainty. According to Kay & Burton Managing Director Ross Savas, the city’s most exclusive homes—particularly those valued above $10 million—continue to attract strong, qualified demand.
“The luxury market in Melbourne continues to perform exceptionally well,” Mr Savas says. “We’re seeing a clear shift toward larger, amalgamated estates that reflects a growing appetite for scale, privacy and longevity. Buyers are thinking generationally—not just about today’s lifestyle, but about legacy.”
And luxury homes are no longer just about location or prestige; amenities are paramount.
“Buyers today are looking for trophy properties with extensive land, cinema rooms, wellness centres, and wine cellars where they can entertain,” Mr Savas explains. “They want more than ever before: more space, more luxury, more utility.”
Extraordinary results for properties such as 123 Rosyln Street, Brighton and 12 Yarradale Road, Toorak, articulate the depth of demand for quality, turnkey homes that embody lifestyle, design excellence and long-term value.
Cotality data shows Australian home values rose 1.1 per cent in October, the fastest monthly gain since June 2023, contributing to 6.1 per cent growth over the past 12 months. The data also reveals $5 million-plus home sales have more than doubled nationally since 2020, with Melbourne recording a 13.5 per cent increase in annual sales.
Nationally, the total value of Australian residential real estate has climbed to a record $12 trillion—a figure more than double the market’s size a decade ago—signalling the continued depth and resilience of the market.
“With limited supply and growing global demand, Melbourne is well-placed heading into 2026.”
—Ross Savas
Melbourne also continues to offer relative value compared with other global capitals. Knight Frank data reveals the cost per square metre for prime properties remains attractive against London, Hong Kong, and New York, giving domestic buyers confidence in both lifestyle and long-term
wealth preservation.
Despite two years of interest rate fluctuations, there has been a decisive return of optimism to the market. The NAB Residential Property Survey notes that Victoria’s improved sentiment was “particularly noticeable”, jumping from +16 in Q1 of 2025 to +36 in Q2 2025. With prices outpacing earlier expectations, NAB has lifted its forecast for the eight-capital-city dwelling price index from 3.5 per cent to 6 per cent across 2025 and expects a further 6 per cent growth in 2026.
“While rate cuts didn’t arrive as quickly or as often as many expected, buyers still feel supported and confident,” Mr Savas says. “There’s a strong sense of stability returning and with that comes confidence to make significant acquisitions.”
That confidence has been reinforced by private capital allocations; 44 per cent of global family offices said they planned to increase real-estate investments in 2025, providing a structural tailwind for the luxury market, according to Knight Frank’s 2025 Wealth Report.
Looking ahead, Mr Savas believes scarcity and intergenerational wealth will define the domestic luxury segment.
“Luxury property is about preservation of capital as much as enjoyment of life,” he says. “With limited supply and growing global demand, Melbourne is exceptionally well-placed heading into 2026.”
International buyers drive demand for Melbourne’s trophy homes
Director, Head of International
“In 2026… the city’s standing as a global luxury destination will only strengthen.”
—Jamie Mi
While domestic buyers navigate these tight market conditions alongside family wealth succession, Melbourne’s international purchasers have also re-emerged as powerful forces in 2025, driving intense competition for the city’s most coveted estates.
The international segment of Melbourne’s luxury market has rebounded strongly, driven by high-net-worth buyers from the United States, Europe, Singapore, and beyond. Jamie Mi, Director and Head of International at Kay & Burton, says the resurgence has been both swift and significant.
“We’ve seen a wave of confidence from international purchasers throughout 2025,” Ms Mi says. “The pace quickened markedly through winter and spring—whenever premium stock became available, it was immediately pursued. Everyone is watching the top end closely.”
International clients have been particularly drawn to ready-to-live-in properties with premium positioning.
“They value condition and location more than local buyers. Homes that are brand new or completely renovated in the best streets are highly sought after,” she says.
“Their preferred price range is $10 million to $25 million, and top suburbs include Toorak, Brighton, Canterbury, Kew, Hawthorn, and Hawthorn East. Most sought-after properties feature four or more bedrooms, multiple ensuites, and generous land between 800–1500 sqm.”
Stock scarcity has been a defining feature of the international market in 2025, driving urgency among buyers, particularly for homes on premium streets.
Ms Mi says international buyers dominate Melbourne’s trophy segment, accounting for more than 80 per cent of Kay & Burton’s top-end activity. Currency advantages are further enhancing their buying power, particularly from US and Singaporean dollar buyers to acquire premium properties at a relative discount.
In November, Ms Mi and members of Kay & Burton’s leadership group travelled to Hong Kong, China and Macau for the World Chinese Entrepreneurs Convention. The global forum provided an opportunity to strengthen relationships, foster collaboration and showcase Melbourne’s position as a leading destination for international investment, further highlighting Kay & Burton’s global reach and strategic partnerships across Asia.
Looking ahead to 2026, Ms Mi says momentum is set to continue.
“Victoria presents excellent opportunities due to affordability relative to other major cities, and buyer confidence is expected to continue to rise,” she says. “In 2026, premium turnkey homes in top suburbs will continue to attract international attention, and the city’s standing as a global luxury destination will only strengthen.”
