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As more buyers flock to the high-end market to take advantage of previous price drops, property prices in some of the more affluent areas of Sydney and Melbourne have seen significant rebounds in the past three months, with growth rates as high as 7%.

Despite uncertainties in interest rates, CoreLogic data reveals that property prices in Sydney's Upper North Shore and Melbourne's Inner East have shifted from decline to strong growth over the past three months (up to April). These areas are leading the nation in terms of price increases.

CoreLogic Research Director Tim Lawless stated, "Many expensive suburbs are bouncing back, which doesn't surprise me given their weak performance in recent months. This has provided more affordable entry points for buyers into the market."

He added, "This segment of the market tends to be quite volatile, so if this trend persists for another quarter, it will be noteworthy. But this quick turnaround does highlight the resilience of the property market, despite the overall low market sentiment."

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Despite the volatility in this sector, the luxury property market might continue to strengthen due to the combination of limited supply and increasing demand.

In Sydney's Upper North Shore, the median house price in Gordon surged by 7.1% over the past three months, a sharp recovery from the 1.4% decline in the previous quarter. The average house price in the area rose by nearly AUD 250,000 in just three months, reaching a median of AUD 3.8 million. Other areas like St Ives Chase, North Turramurra, East Killara, and North Wahroonga also saw price increases ranging from 3.4% to 5.7%, with median prices currently between AUD 2.7 million and AUD 3.6 million.

In Melbourne, suburbs such as Kew East, Balwyn, Kew, Balwyn North, Brighton, and Camberwell experienced a 5.5% price rise over the past three months, rebounding from a 3% decline in the previous quarter and overcoming the general softness in the city's real estate market.

Brisbane's luxury market also saw a rebound in the past three months, with inner suburbs like Balmoral and Wilston experiencing price increases of over 4%, up from 2.5% in the previous quarter.

In Perth, property prices in Swanbourne and Dalkeith rose by 7.4% and 1.7% respectively over the past three months, a strong recovery compared to the declines of 0.6% and 3.6% in the previous quarter.