Luxury property values have risen sharply, with the upper end of the market rapidly outpacing median priced homes.
According to the Ray White Luxury Property Report, luxury house prices have increased 84 per cent since 2014, while median house prices have grown 70 per cent.
Notably, Hobart’s luxury market has been the best performed, up 122 per cent over the past 10 years, while Brisbane follows close behind with 102 per cent growth.
Melbourne was the only major city where median house price growth exceeded luxury house price growth.
Meanwhile, Perth showed the largest gap between growth rates, with a 24.3 per cent gap between luxury and median house price growth rate.
Sydney had the second largest gap, with 21.8 per cent difference between luxury and median house price growth rates.
Ray White Senior Data Analyst, Atom Go Tian, said tight supply had pushed prices skyward.
“Currently, the market is experiencing an unprecedented surge in prices for prime and super-prime properties, largely driven by limited supply, as there are only so many properties that can be built in the most desirable locations near beaches, bays, and rivers,” Mr Go Tian said.
“Homes with unique characteristics, such as exceptional views or proximity to water, are seeing even greater price appreciation.”
At the same time, luxury unit prices have also outpaced median unit prices, growing 58.3 per cent compared to 31.5 per cent.
Hobart had the largest growth rate across major cities with 101 per cent for luxury units and 102 per cent for median units.
It’s also the only city where median unit price growth was greater than luxury unit price growth.
Sydney is another standout as it not only has the second largest luxury unit price growth, but the most expensive luxury unit prices, the largest difference between luxury and median price growth, and the largest difference between absolute luxury and median prices.
In terms of transaction volume, the luxury home market experienced some notable shifts over the past decade.
Melbourne dropped four per cent market share in luxury units and 12 per cent market share in luxury houses, while the Gold Coast emerged as a rapidly growing luxury unit market with a nine per cent increase in market share.
Brisbane experienced substantial growth too, with both luxury house and luxury unit prices surpassing the million-dollar threshold for the first time.
Its luxury transaction growth rate in 2023 was the largest of any major city.
Meanwhile, Sydney continued to dominate, accounting for 64 per cent of all luxury house sales nationally and 51 per cent of all luxury unit sales.
Mr Go Tian said he expected continued strong performance from the upper end of the market in the years ahead.
“Overall, while 2023 saw stronger growth in median prices, the luxury market remains robust, particularly over a 10-year horizon,” he said.
“Regional disparities in growth rates and transaction volumes reflect varying market dynamics across Australian cities.”
