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According to CoreLogic data, high-end property prices in Sydney and Melbourne have surged by up to 7% over the past three months, as more buyers entered the market to take advantage of the currently lower property prices. Despite the interest rate uncertainties, the three months leading up to April saw house prices in Sydney's Upper North Shore and Melbourne's Inner East shift from a downward trend to robust growth.

Certain areas in Sydney's Upper North Shore have seen substantial price rebounds in the past three months. Tim Lawless, CoreLogic's head of research, remarked that the price recovery in these expensive areas is not surprising, as the previous months' softness provided buyers with more affordable entry points. Lawless noted that this market segment is typically quite volatile, making it worth watching if the trend continues into the next quarter. This rapid change highlights the housing market's resilience amid downbeat sentiments.

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Nerida Conisbee, Ray White's chief economist, pointed out that a shortage of inventory and rising demand from wealthy buyers might also be driving the growth in high-end property prices. She noted that while some sellers remain cautious, there are fewer luxury homes available for sale. At the same time, affluent buyers who do not rely on mortgages, such as those who have profited from cryptocurrency, gaming, or mining, are entering the market, increasing competition. Conisbee added that owning a luxury home as a primary residence is a tax-free way to hold wealth, making these coveted properties highly sought after.

Despite market volatility, the high-end sector is likely to remain strong amid supply shortages and rising demand. Conisbee believes that the scarcity of high-end homes and rising land values will maintain their robust value. The high-end market is generally more resilient to changes in planning regulations, making a surge in apartment construction unlikely.

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In the past three months, Gordon in Sydney's Upper North Shore led with a 7.1% median price increase, with house prices rising by nearly AUD 250,000 in just three months, reaching a median of AUD 3.8 million. House prices in St Ives Chase, North Turramurra, East Killara, and North Wahroonga also saw increases, ranging from 3.4% to 5.7%, with median prices between AUD 2.7 million and AUD 3.6 million.

Bronwen Lipscombe, a sales agent at McGrath Wahroonga, mentioned that the low housing inventory has intensified competition among buyers, driving up prices. Thomas McGlynn, CEO of BresicWhitney, highlighted strong demand from Chinese buyers in the Upper North Shore,