Main image: Set on a rare oversized block, this Brighton residence achieved the suburb’s highest recorded sale price, illustrating how $20m-plus transactions now define Australia’s premium property landscape.
As next-generation wealth drives multimillion dollar transactions, Australia’s luxury property market is witnessing a transformation in both price and prestige.
—by Kirsten Craze
While mainstream metrics might demonstrate steady growth in overall property values, it’s the ultra-luxury price bracket (homes sold for more than $10m) that offers a compelling narrative for Australia’s luxury real estate. Increases in elevated transactions reveal that the high-end market is being redefined.
In Melbourne, more than 10 homes boasting eight-digit price tags hit the market in the first week of August alone, while approximately two dozen sold over that price point in the first half of 2025, according to realestate.com.au listings. For Sydney, 15 homes asking $10m-plus came to market in early August, while more than 100 have sold over that benchmark since January 2025. Anecdotally, luxury real estate agents across the country confirm there are dozens more off-market sales topping $10m, suggesting that the scale of ultra-luxury sales is impossible to accurately tally.
At the extreme end of property prices, new thresholds have been surpassed this year in Sydney and Melbourne. A yet-to-be-built three-storey penthouse in Barangaroo fetched more than $140m, while in Victoria, luxury real estate agency Kay & Burton discreetly negotiated two of the state’s most significant transactions ranging between $50m to $150m. The former $31.6m house price record in Melbourne’s suburb of Brighton was also reset with a recent sale on Moule Avenue which sold for an undisclosed figure.
Mark Browning, head of valuations and property advisory at NAB, says today’s ultra-luxury purchasers are largely entrepreneurs who place features such as privacy, security, and a well-being-focused lifestyle high on their wish lists.
“There has always been a segment of buyers drawn to traditional family estates that have been meticulously renovated with every conceivable modern amenity,” Browning says. “But there’s an equally strong demand for contemporary penthouses, whether it’s a beachfront property on the Gold Coast or a harbour-view residence in Sydney, with integrated luxury amenities. Both styles are commanding premium prices, reflecting how diverse luxury preferences have become.”
While luxury real estate purchasers typically skew towards their 40s and 50s, Browning notes that ABS lending data shows there has been a rise in wealthy younger millennials making their move into the multimillion-dollar market.
Financing figures don’t tell the whole story, with a cohort of top-tier buyers unaffected by interest rate movements or borrowing power.
“At the top, interest rate fluctuations have minimal impact. It probably speaks more to confidence in the wider Australian economy, rather than affordability, given these buyers typically transact in cash,” he explains. “But if lower rates spur the general economy and in turn, share market gains and business viability, that creates a stronger correlation for these buyers than mortgage costs.”
Kay & Burton managing director Ross Savas anticipates the high net worth population may undergo fundamental changes over the coming decade, and with that shift may come an evolution of the top-end property preferences and market dynamics.
“Australia is experiencing a massive intergenerational wealth transfer that represents a once-in-a-generation economic shift with global implications and the momentum is already building,” Savas explains.
“Additionally, we’re seeing significant wealth creation from entrepreneurs in technology and digital commerce, a trend that is expected to accelerate in the near future.”
The weakened Australian dollar presents another driver in the luxury property sector. Sitting at or below USD$0.65 for most of the year, the Australian currency presents an enticing value proposition for offshore buyers.
“The lower Australian dollar positions our property market in a favourable light worldwide,” Savas explains. “We’re seeing substantial interest from expats and offshore buyers who are eager to buy here. Both our overseas client database and international business meetings reflect that demand.”
Research shows that on a global stage, Australia’s top 5% of most expensive homes offer impressive “bang for buck.” According to Knight Frank’s The Wealth Report 2025, US$1m (AUD$1.53m) buys 45sqm of luxury Sydney real estate, while the same amount would secure 87sqm in Melbourne. These metrics represent extraordinary buying power when compared with other cities such as Hong Kong, Singapore, London, New York or Geneva, where US$1m bought less than 40sqm of prime property in 2024.
Jamie Mi, partner and head of international at Kay & Burton, says Melbourne’s luxury property market continues to represent outstanding value for overseas purchasers.
“Melbourne remains significantly affordable relative to comparable global cities and emerging luxury markets.”
“By October this year, we predict a new wave of curiosity and powerful overseas inquiry, specifically from China, Hong Kong, Singapore, the US and Vietnam,” she says.
“Already, we’re witnessing shorter settlements, even for homes selling for up to $40m, and a resurgence in the all-cash purchaser,” Mi adds. “Should the Australian Government expand immigration pathways, it may create another decade-long wave of demand in the top-end suburbs. Ultimately, we remain competitively priced against other global cities while offering strong long-term growth potential.”
01 Bespoke wine storage exemplifies the custom features now expected at the ultra-premium price point.
02 An elegant entrance and landscaped gardens frame this prestigious residence at 73 Kooyongkoot Road Hawthorn.
03 This record-breaking Brighton home features direct beachfront access and sweeping bay views, along with a swimming pool and tennis court.