Australia’s prestige property market is splintering into distinct tiers, with Perth and Queensland now driving luxury price growth while Sydney and Melbourne consolidate at higher but slower‑growing levels, new Ray White analysis shows.
In its 2026 Luxury Outlook, Ray White defines luxury nationally and then drills down to SA2 level, revealing a market “running at several different speeds” across the capital cities.
Those findings sit against a recent backdrop of a broadly resilient prestige sector, with offshore demand helping sustain large deals in blue‑chip postcodes even as activity cooled.
Perth’s prestige suburbs are setting the pace. City Beach – long one of the city’s most coveted addresses – recorded 18% growth over 12 months, underpinned by a strong state economy, population inflows, and a chronic shortage of high‑end stock. Claremont lifted 17% to a $2.78 million median, while Mosman Park–Peppermint Grove climbed 16.9% to $3.03 million.
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Atom Go Tian, Ray White Group economist, says “Perth is in its third consecutive year of double-digit growth in the luxury space” and that this is no longer just a post‑pandemic or commodity boom anomaly; it is now the city’s baseline.
The practical result is a narrowing gap with Sydney. Buyers and property investors who once saw Perth as a clear value play relative to the eastern seaboard are now competing in a market where that discount is shrinking.
That shift is reflected in the national numbers. The national luxury house threshold now sits at $2.75 million, up about 80% over the past decade, with Brisbane and Perth’s thresholds now within roughly $100,000 of Melbourne’s after years of outperformance.
Queensland appears to be following a similar path, roughly a year behind. In Brisbane, Newstead–Bowen Hills rose 11.2% over the year to a $2.88 million median, with Ascot and Hamilton also posting double‑digit gains. On the Gold Coast, Surfers Paradise South, Mermaid Beach–Broadbeach and Main Beach each delivered annual growth between 8.6% and 9.7%, with Main Beach now at $3.86 million.
Sydney’s prestige market, by contrast, is growing more slowly in percentage terms but from a much higher base. Dover Heights, Double Bay–Darling Point and Bondi–Tamarama–Bronte all achieved annual gains a little above 5%, with medians between about $5.1 million and $6 million. That points to stability rather than momentum, but still sizeable dollar gains for upgraders and downsizers looking to recycle equity.
Melbourne’s recovery is more modest, with leading luxury suburbs posting low‑single‑digit growth as the city works through a long period of underperformance.
For brokers arranging large loans for prestige clients, the numbers indicate the most intense competition – and the sharpest price moves – are now in Perth and coastal Queensland. Sydney is consolidating at very high price points, while Melbourne is only slowly edging off the floor.
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