Something fascinating is happening at the moment in the luxury dwelling market. Say hello to the newly crowned suburbs.
It’s the top end of the property market in Sydney and Melbourne where values are softening the most, while more affordable areas are holding up pretty well.
Even so, it’s hard to believe the prices still being paid for properties at the luxury end of the market.
Old suburb royalty
According to a report this week from Ray White chief economist Nerida Conisbee, when it comes to Australia’s most expensive locations, the old money suburbs aren’t budging.
Bellevue Hill, Point Piper and Rose Bay continue to top the list of most expensive suburbs for luxury homes in Australia. The top 10 per cent of these markets now have an average price above $11 million.
Sydney continues to dominate, with one Melbourne suburb, Toorak, appearing. But beneath the high-level numbers of the most expensive suburbs, the luxury market is now shifting.
The newly crowned
Nerida has taken a look at not only where the most expensive luxury homes are located but also the suburbs that have seen the strongest increase in prices. Rather than looking at just the median price, Ray White have concentrated on prices and growth in the top 10 per cent of the market in each suburb to get a better read on the luxury end of the market.
Changes happening on the Gold Coast has seen it showing up in the luxury end of the property market. Luxury homes at Main Beach have nearly doubled in value since 2019, jumping from $3.8 million to $6.6 million. Not bad for a suburb that was sitting at 50 in the most expensive luxury market in 2019.
Surfers Paradise North is similar. The median price for luxury properties has surged past $6.7 million and is now on par with Coogee and Clovelly in Sydney. Mermaid Beach-Broadbeach also features in the top 10 of growth areas for luxury properties.
There is continued strength in luxury markets in Perth. Cottesloe in Western Australia has seen property values increase by $2.4 million in just five years. Prices are now similar to luxury homes in East Melbourne and Roseville in Sydney.
Canberra suburb, Forrest, is also a luxury home star performer. While Canberra’s property price growth is now relatively stable, the top end has seen impressive increases.
Meanwhile, traditional powerhouses like Mosman and Double Bay continue to perform well, but they’re no longer dominating the growth story.
What does this tell us?
According to Nerida, while the top end of the market remains relatively stable, albeit slowing, the path to luxury status is becoming more diverse. While it continues to be dominated by Sydney suburbs and Melbourne’s Toorak, the Gold Coast, Perth and even Canberra, are now seeing some of the luxury property growth in the country.
Bellevue Hill and Point Piper aren’t likely to lose their crowns anytime soon, but the competition for top spots is becoming increasingly interesting.
