Australia Luxury Residential Real Estate Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

Australia Luxury Residential Real Estate Market Analysis

The Australia Luxury Residential Real Estate Market size in terms of transaction value is expected to grow from USD 23.88 billion in 2024 to USD 31.58 billion by 2029, at a CAGR of 5.75% during the forecast period (2024-2029).

The increase in demand for luxury residences in the primary metropolis drives the market. Furthermore, the market is driven by the reduction in prices meeting the demand for luxury residential properties from foreign buyers.

By the beginning of 2022, the median house price in Australia's most affluent capital cities had surpassed seven figures. Although real estate prices have increased significantly over the previous few years, the Australian Bureau of Statistics reported yearly price growth of 24%. In terms of annual capital growth, Perth led the luxury residential real estate market in Australia with 4.1%, followed by Brisbane (3.8%), Gold Coast (3.5%), Sydney (1.9%), and Melbourne (0.4%). Sydney recorded an annual growth of 27% in property prices, while the property prices in Canberra and Brisbane rose by 29% each. Surprisingly, leaving all these expensive cities behind, Hobart emerged as the hottest property market with a 30% annual appreciation in property prices in 2022.

Luxury house sales peaked during the boom in terms of price and volume, but these outcomes are becoming less common as the market cools. Over the last two fiscal years, luxury purchases have doubled. According to a new survey, over the past two financial years, more than 1000 residences nationwide—doppel the volume from the previous two years—sold for more than USD 10 million, and almost 2550 luxurious flats went for more than USD 3 million.

The luxury property market has braked as well-heeled buyers start to worry about brewing profitable headwinds, new numbers show. High property prices – the most precious 5 percent of homes in a market – have fallen or are slightly rising across major Australian metropolises. Rising interest rates have pushed property prices lower in the broader request and reduced how important plutocrat home buyers can adopt. But top-end properties are less affected because numerous wealthy buyers have had business success and can buy a home without a mortgage. Rather, top-end property markets can be affected by the position of profitable confidence- but can also be asset-specific when a buyer finds a home they like. Where increased mortgage rates have suppressed the growth within our mainstream domestic markets since mid-year, the ongoing global profitable query and the inflow onto other asset classes within wealth portfolios have only lately started to impact the prestige domestic market.

Australia Luxury Residential Real Estate Market Trends

Ultra High Net Worth Population Driving the Demand for Prime Properties

Australia Luxury Residential Real Estate Industry Segmentation

Luxury residential real estate is a property that features a prime location, high price, large size, valuable materials, expert design, high-end amenities, and prestigious history. A complete background analysis of the Australian luxury residential real estate market, including the assessment of the economy and contribution of sectors in the economy, a market overview, market size estimation for key segments, emerging trends in the market segments, market dynamics, and geographical trends, and COVID-19 impact, is covered in the report.

Australia's luxury residential real estate market is segmented by type (apartments and condominiums, villas, and landed houses) and by cities (Sydney, Perth, Melbourne, Brisbane, and other cities). 

The report offers market sizes and forecasts in value (USD) for all the above segments.