Surging Luxury Home Sales Reflect Rising Wealth

Luxury property sales are soaring across Australia as increased wealth among high net worth individuals drives demand. This sharp uptick could worsen existing supply shortages. The number of Australian homes sold for more than $5 million reached 3,295 in 2024, which represents a 55% increase from 2020 and a 5% rise compared to the previous year, based on research by Westpac and Cotality. As more wealthy Australians invest in real estate, competition in the high-end segment is intensifying.

Australia's expanding millionaire population is helping reshape the real estate market. In 2024, the country added 55,000 high net worth individuals, a 9% increase from the previous year. At the same time, total wealth held by the top 200 on the Australian Financial Review Rich List climbed nearly 7% to $667.8 billion. These changes help explain why activity at the high end of the market continues to grow, with affluent buyers showing strong interest in homes priced above $5 million.

Mosman in Sydney led the nation in high-end home sales last year with 148 transactions, followed by Bellevue Hill with 83. In Victoria, both Toorak and Brighton recorded 72 sales. While traditional urban hubs continue to lead, regional markets are emerging as serious players. On the Gold Coast for example, 40% of Queensland’s 380 prestige home sales took place, highlighting growing interest outside major cities. At the same time, demand in metro Adelaide and surrounding parts of Perth contributed to record-breaking results for both South Australia and Western Australia.

High-end market growth is now reaching beyond traditional strongholds. While Sydney’s sales growth held steady, prestige sales in Perth rose by 69% and Adelaide saw a 140% surge. Melbourne followed with 569 luxury transactions, about one-fourth the volume of Sydney, reinforcing the city’s ongoing dominance. However, lifestyle preferences and intergenerational wealth transfers are bringing more buyers to regional and seaside locations.

This activity suggests a lasting trend rather than a short-term surge. Analysts credit factors such as low interest rates, strong equity markets and increasing capital inflows into Australia. Coastal and lifestyle suburbs close to major cities, including Noosa, Byron Bay and Surfer’s Paradise, continue to attract wealthy buyers seeking both liveability and solid investment performance.

With demand outpacing supply, especially in tightly held premium areas, luxury homes are increasingly rare. As more buyers look for turnkey options and cross-border interest remains high, growth in the high-end segment appears likely to continue. Rising construction costs and a growing preference for move-in-ready homes may further elevate competition within an already constrained market.

Source: Australian Financial Review, Mordor Intelligence, Knight Frank Australia, Data Insights Market, Smart Property Investment, NAB Business