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According to the inaugural High-End Real Estate Report, published by Westpac Private Bank, there has been an explosion in the number of transactions for properties over A$5 million, with the number of such properties more than doubling since 2019. Over the 20-year period to 2023, the number of A$5 million-plus property sales has surged by 1,151%.

Tim Lawless, executive research director for CoreLogic Asia Pacific, said that despite global uncertainty over the past few years, demand for high-end properties has remained strong. He noted, “The report shows that Australia's high-end real estate market continues to strengthen, especially relative to pre-epidemic levels. Over the 20 years to 2023, the number of transactions for homes priced at A$5 million or more has increased 12-fold.”

According to CoreLogic, the number of home transactions priced at more than $5 million soared 240 percent during the peak growth phase from 2019 to 2021. This explosive growth stabilized last year, with the number of A$5 million-and-over transactions dropping to 2,927 from a peak of 3,845 in 2021. However, the number of sales in this category still increased by 159% between 2019 and 2023.

Despite the general rise in home prices, high-end homes outperformed the rest of the sector.CoreLogic's National Home Value Index grew by 24.5% in 2021, but the strongest performance was in the top 25% of home values, which rose by 30%.

Ashley Stewart, managing director of Westpac Private Bank, said Australia's top real estate market was now operating within its own protection from the traditional windfalls of other markets. High-end real estate is less vulnerable to economic shocks. One reason for this is the high proportion of cash buyers among the wealthy, which minimizes the risk of interest rate fluctuations.

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Stewart notes, “The reality is that the purchasing decisions of high net worth clients are less susceptible to rising interest rates and macroeconomic factors than the overall market.” Supply chain disruptions, increased construction costs and overseas migration during the pandemic intensified the already scarce demand for well-located designer home resources.

In addition, the post-pandemic emphasis on lifestyle factors such as proximity to water and nature, health and wellbeing, working from home and intergenerational living has made luxury homes more important to wealthy Australians than ever before. This scarcity will support long-term demand, particularly for detached homes within 10km of the capital city and those close to the water.

Waterfront remains the number one feature of high-end property in Sydney, with 23 of the top 30 suburbs with sales of more than A$5 million located on the waterfront. Sydney is the city with the most and most expensive properties sold in 2023, accounting for nearly two-thirds (66.5%) of the number of properties sold above A$5 million across Australia.

Last year, Mosman on Sydney's Lower North Shore had the highest number of high-priced property sales in Australia, with 140 properties selling for $5 million or more in the long-established waterfront suburb. However, at the very top end of the market, Bellevue Hill in Sydney's East End had the highest number of transactions over A$20 million. The blue-chip suburb, known for its large homes and sea views, recorded 12 sales in 2023.

Toorak, Melbourne had the most sales of the most expensive properties in Victoria last year, with 48 transactions over A$5 million.Noosaville was the only Queensland suburb to make the top 30, with 22 property transactions in 2023 with sales over A$5 million.

As lifestyles change and the quest for a higher quality of life continues, more affluent buyers will continue to seek out well-located, well-designed luxury homes. Whether it's close to the waterfront, city centers or natural landscapes, these high-end homes will continue to appeal to homebuyers who are looking for an exceptional quality of life.