Partner
“Both buyers and vendors have been more considered this year… Yet even in this environment, well-positioned properties are still achieving exceptional results.”
—Oliver Booth
After a year marked by cautious sentiment, Stonnington’s prestige market continues to demonstrate its enduring strength. While 2025 has presented its share of challenges—from interest rate sensitivity to broader economic uncertainty—Stonnington’s hallmark of stability has remained intact.
“Both buyers and vendors have been more considered this year,” says Oliver Booth, Partner at Kay & Burton. “There’s less urgency in decision-making and many people are taking a more cautious approach. Yet even in this environment, well-positioned properties are still achieving exceptional results.”
Stonnington’s performance reflects the resilience of Melbourne’s blue-chip suburbs, where scarcity and quality continue to underpin demand. For premium inner-city postcodes like those in Stonnington, where available land is limited, strong premiums are being achieved for large blocks and turnkey homes.
A once-in-a-generation opportunity in Toorak articulates the enduring appeal of the area, as one of the most significant development offerings the suburb had seen in recent years. Encompassing more than 6340 sqm*, the blue-chip landholding—represented by Kay & Burton’s Ross Savas, Nick Kenyon and Jamie Mi—offers scope for a landmark residential development (STCA) in a location long regarded as the apex of luxury living. Its exceptional scale and flexibility have set it apart—an unencumbered parcel of this size is exceedingly rare in Toorak. According to Landchecker, there are only two other properties of comparable size without heritage overlays.
Domain data shows Toorak was among Victoria’s 12 suburbs to record a six-figure decline to its median house price over the past year. However, Dr Nicola Powell, Domain’s Chief of Research and Economics, notes these figures don’t reflect the suburb’s extraordinary diversity, where sales have ranged from $1 million to multiple transactions well above $50 million in the past 12 months—arguably the broadest price spectrum of any Melbourne suburb. These variations point to recalibration rather than weakness—a brief correction within a market defined by enduring prestige and global demand.
In another segment of the market, CBRE’S Residential Valuer Insights Q2 2025 noted a 42 per cent increase in demand for recently renovated properties. Mr Booth agrees, observing “huge demand for properties that require no work”, particularly among families and high-net-worth buyers seeking lifestyle certainty.
The $5 million to $15 million range remains Stonnington’s “sweet spot”, he adds, led by established homes in Armadale, Malvern, Toorak and South Yarra. Larger blocks over 700 sqm, with family functionality, four-to-five bedrooms and dedicated work-from-home zones, continue to be tightly held.
Macroplan analysis supports this trend, noting that more than half of Stonnington residents work from home at least one day a week—reflecting the premium placed on liveability and flexibility.
“Buyers in these areas tend to work in finance, communications, and medicine,” notes Macroplan’s 2025 report, “giving them greater ‘bidding power’ to prioritise location and amenity.”
In a highlight for the spring market, the sale of 17 Manning Road, Malvern East, set a house price record for the suburb. Extensive interest and an acceptable offer of $10 million resulted in a private auction being held in the property’s glorious gardens, where six parties vied for the landmark Gascoigne Estate home. The property ultimately sold for an undisclosed figure that exceeded expectations.
Looking ahead to 2026, Mr Booth anticipates measured improvement as buyer confidence rebuilds, supported by intergenerational family wealth and international capital that continues to flow toward Stonnington’s elite schools, village culture and enduring architectural appeal.
“If there are a handful of more rate cuts, that will help unlock momentum,” he says.
For discerning buyers, Stonnington’s balance of stability, scarcity and sophistication remains unmatched. It’s a market that rewards patience and rarely disappoints those who secure their place within it.