Australia’s prestige property market ended the financial year in record-breaking form, defying global uncertainty and reaffirming its position as one of the most sought-after luxury real estate markets in the world.
Nationally, sales of homes above $5 million rose 5.2 per cent year-on-year—more than triple the volume recorded five years ago, according to Cotality (formerly CoreLogic). The momentum was mirrored at the ultra-prestige level, with a series of $50 million-plus estates changing hands in Melbourne and Sydney, and two reported transactions exceeding $100 million.
Ross Savas, Managing Director of Kay & Burton, said the appeal of Australia’s blue-chip homes was being amplified by scarcity and a global appetite for secure, high-quality assets.
Group Board member
“People know what they want—and they want luxury real estate,” he said. “It’s a finite asset class, and once these properties are bought, they often remain in the same hands for decades. That scarcity factor is driving values to new heights,” he explained. “Successful people are becoming more successful, and they’re chasing a very limited part of the market. It’s a global trend, not just an Australian one.”
With location, exclusivity, and long-term capital growth high on the agenda, prestige property continues to operate on its own terms.
“In many ways, there’s a two-speed market across Australia—there’s luxury property, and then there’s everything else,” Mr Savas added.
The profile of prestige buyers has never been broader, with next-generation entrepreneurs, technology founders, and returning expats joining established family wealth. While they are searching for homes, Mr Savas says they are ultimately investing in intergenerational security.
“In a climate of macroeconomic unpredictability, prime property remains one of the few assets that offers both intrinsic value and utility,” he noted.
Beyond the prestige sector, Australia’s housing market continues to build momentum. According to Cotality’s Home Value Index, every capital city recorded a rise in value for the month of July, with combined growth of 1.8 per cent—marking the sixth straight month of gains. Cotality figures also show that annualising the most recent quarterly change implies a national growth rate of 5.8 per cent—above the decade average of 5.2 per cent.
In the March quarter, the national average price of residential dwellings in Australia surpassed $1 million for the first time, according to the ABS. The total value of the nation’s residential real estate reached $11.4 trillion, up $130.7 billion on the previous quarter.
The Kay & Burton team has been a leading force behind several of this year’s standout prestige sales, from landmark historical estates to contemporary inner-city penthouses, with more high-profile listings expected this spring. Across Kay & Burton’s core metro markets of Bayside, Boroondara and Stonnington, we held 46 per cent of total sales above $10 million for the financial year ending in June—ahead of our nearest competitor at 27 per cent*.
“Moving forward, we expect continued strength in the prestige market as demand for truly exceptional homes ramps up. Properties that can offer high-end buyers a combination of architectural uniqueness, privacy, and unrivalled location will continue to command top dollar from both domestic and international buyers,” Mr Savas said. “My prediction is the luxury sector of the market will continue to grow, and the next 12 months will be stronger than the last.”
Global capital flows back to Australia
The appetite for luxury property is increasingly international. Melbourne’s relative value for money is proving a significant drawcard for overseas buyers—particularly with the Australian dollar holding below US$0.65 for much of 2025. Jamie Mi, Partner and Head of International at Kay & Burton, said the shift in activity over the past year has been dramatic.
Partner, Head of International
“Between June 2024 and January 2025, the water in the tap was just dripping, not running. However, from late January to June this year, it felt like the tap was really flowing. Transaction numbers are healthy and the value of each transaction has increased,” she said.
This spring, Ms Mi anticipates renewed waves of enquiry from China, Hong Kong, Singapore, the US, and Vietnam. Kay & Burton’s international desk has been touring the globe to meet with clients in key hubs, while demand for Melbourne property continues to dominate PropTrack’s Overseas Search rankings. Alongside the CBD, suburbs including Brighton, South Yarra, Camberwell, Toorak, Armadale, and Hawthorn rank in the top 20 for offshore interest, according to its latest report.
Although Foreign Investment Review Board approvals for residential purchases fell in 2024, Victoria still accounted for the highest share nationally, with 2240 transactions compared to 1121 in Queensland and 656 in New South Wales. In total, international buyers acquired $4.6 billion worth of Australian property last year.
Ms Mi said most overseas purchasers are active in the $8 million to $16 million range, seeking turnkey homes with high-quality modern finishes. “These are sophisticated purchasers who want completely renovated or near-new properties,” she said. “For land, demand is mostly from Vietnamese buyers and local Asian or Australian buyers. We’re seeing a recovery in the building and construction industry, so we’re working closely with architects and our clients to secure the right opportunities.”
She noted that transactions are being completed more swiftly, even at the top end of the market.
“We’re seeing shorter settlements, even for homes up to $40 million, and a resurgence in the all-cash purchaser,” Ms Mi said. “If the Australian Government opens up immigration again, it will create another decade-long wave of demand in the top-end suburbs. Ultimately, we remain relatively affordable compared with other global cities, and we have some of the strongest long-term growth potential.”
*Data sourced from realestate.com.au sold listings and Kay & Burton CRM
In compiling this article, Kay & Burton relied upon information supplied by several external sources. This article has been provided for general information only and has not been tailored to your personal circumstance. Although high standards have been used in the preparation of the information, analysis, views, and projections presented in this article, Kay & Burton does not owe a duty of care to any person in respect of the contents of this article and does not accept any responsibility or liability whatsoever for any loss or damage resulting from any use of, reliance on or reference to the contents of this article.