John McGrath continues to achieve strong success in the luxury real estate market

The recent data from Cotality reveals that the median house value in Brisbane has surpassed $1 million for the first time ever. While this figure may come as a surprise to many Australians struggling with a cost-of-living crisis, there is a growing number of buyers who consider properties priced at $1 million and above as affordable options.

In particular, the prestige property market, which encompasses sales ranging from $5 million to over $20 million, is experiencing significant growth. According to the 2025 Prestige Property report by Westpac Private Bank, there has been a substantial increase in the number of $5 million-plus property sales, reaching their second-highest figure on record in 2024. This surge in sales represents a 217% increase compared to five years ago and a 5.2% rise from the previous year.

Not only are property sales in the prestige market on the rise, but premium property rentals are also experiencing steady growth, particularly in Sydney and Melbourne. Sydney has seen a 43.1% increase in rental prices over the past five years, placing it at the third position on the Prime Global Rental Index, while Melbourne follows closely behind with a 39.7% rise.

In a recent report by Herron Todd White (HTW), the prestige buyer segment is highlighted as a standout performer, driven by low supply and high demand, especially for new builds. Despite minimal shifts in the prestige market following interest rate drops, buyer sentiment and confidence have improved overall.

Unlike the broader housing market, where buyers often rely on mortgages, prestige buyers tend to utilize cash, strategic lending, or high equity in other investments when purchasing a home. These high-net-worth individuals are more influenced by global economic factors such as equity market performance, offshore capital flows, and currency fluctuations, rather than just interest rate changes.

Recent trends indicate that prestige buyers are increasingly focused on the long-term value of properties, as opposed to short-term gains. They prioritize properties that hold value over time, contributing to intergenerational wealth and legacy planning. Moreover, the demographic of prestige buyers is becoming more diverse, including Aussie expats, individuals with offshore income, foreign buyers, second-generation business leaders, and young entrepreneurs.

Expanding beyond traditional luxury markets, areas like Brisbane, Perth, Adelaide, and regional Queensland have witnessed record $5 million-plus sales in 2024. Notably, regional Queensland surpassed Brisbane in $5 million-plus sales volume, with popular locations like Noosa Heads, Surfers Paradise, and Noosaville leading the way.

Exclusive suburbs like Vaucluse, Point Piper, and Bellevue Hill in Sydney continue to attract $50 million-plus sales, further solidifying their status as premium property hotspots. Particularly, Point Piper stands out with the highest number of ultra-prestige transactions, earning its reputation as Australia’s top destination for luxury real estate.

In conclusion, the prestige property market continues to thrive, driven by increasing demand from affluent buyers who prioritize long-term value and asset positioning. As the market landscape evolves, diverse buyer demographics and expanding luxury markets are reshaping the real estate industry, creating new opportunities for both buyers and sellers alike.