April 1, 2022

Luxury Property Market Update

All you need to know

The luxury property market has continued to strengthen across the start of 2022 as buyers compete intensely for the scarce levels of offerings on the market. This has resulted in a strong start to 2022 with trophy homes transacting at record prices. Demand has remained strong across all major capital city markets, with particular emphasis on the Sydney and Brisbane markets. Underlining this has been the high number of trophy home sales, or those in excess of $10M, that have already transacted in early 2022 so far.

The luxury end of the market, being the top 2% of each market by value, remained strong over the Summer period. On an annual basis, the housing market at the upper end of the market continues to outperform the broader market across the capital city markets.



2021 saw ultra-wealthy buyers in Sydney drive sales volumes to new heights for a calendar year, with a record of 260 properties having changed hands for more than $10M. While the second half of the year was largely marred by the resurgence of the COVID-19 pandemic and associated extended restrictions, this failed to dampen confidence levels of wealthy buyers across Sydney. The result of the unwavering demand gave rise to sales above this price point outperforming the record setting 2020 calendar year, by around +70%.

The Sydney market has already reported 10 sales beyond the $20M mark in 2022 and it is on track for another strong year. This has been highlighted by a (reported) $62M sale in Wentworth Road, Vaucluse, which once confirmed, will be the third highest sale in Australia on record. Additionally, Mosman, on the lower north shore has seen a strong level of activity in the price bracket above $10M, with a $33M sale in early March 2022 being recorded, setting a new benchmark for the suburb.

Additionally, highly regarded suburbs such as Centennial Park ($20.5M), Dover Heights ($14.5M) and Paddington ($12M) have all seen new record heights being reached in 2022. On a global scale the Sydney Property Market is highly regarded, therefore expectations are the market will be buoyed by the international border reopening of late February 2022, with the return of foreign buyers to Sydney anticipated to add a further layer of demand.

The strong results have not been limited to the housing market in 2022, with several off the plan sales being recorded for luxury penthouse apartments in boutique developments. The highlight of these being the $16M off the plan penthouse sale in the luxury Vedalia development in Double Bay. The sale price of the three-bedroom apartment set a new record on a dollar rate per square metre of living area, with the purchase reflecting $108,000 per square metre. Additionally, there are very recent reports of a yet to be completed, penthouse apartment in Tamarama selling for $17M, which is the highest result for an established or off the plan apartment in that suburb. This sale reflected a rate per square metre of slightly below the $100,000 per square metre threshold.


2021 provided some of the strongest market conditions in the luxury price bracket of the market on record. Sales above the $10M mark in 2021 totalled 100, which was a +96% rise compared to the more challenging 2020 calendar year. While a slightly slower start to 2022 has been seen, there have still been several trophy home sales reported. The highest sale of 2022 so far, being 802 Orrong Road, Toorak, for a reported $38.5M in early March 2022, will sit as the third highest residential sale on record in both Melbourne and Victoria once confirmed.

Whilst much of the attention on the top end of the market focuses on the abovementioned Melbourne suburb, the Mornington Peninsula continued to benefit from the Summer selling season, as it is a time of year when more affluent Melbourne buyers transcend on the region. As such, several transactions were reported over this period, including the recent sale of a luxury estate in Red Hill South, purchased for a figure within its $25M – $27M price guide range, a new record high for the hinterland region of the Mornington Peninsula.


The Brisbane luxury property market is still providing very strong results as the momentum continues from a record setting 2021 calendar year. As was seen throughout 2021, many Brisbane suburbs continue to see new peak prices achieved. The influx of new arrivals, whether they be from Melbourne, Sydney or ex-pats, has seen cashed up buyers looking to the Brisbane luxury/prestige market for a new place to call home.

The more affluent suburbs of Ascot, Hamilton, New Farm, Kangaroo Point, Robertson and Paddington have all continued to see strong results reported in 2022, with high demand for properties in these locations. A key reported sale located in Robertson, being a six bedroom mansion on a 1 hectare site, is reported to have sold for $17.25M, with the sale, once confirmed, being the highest sale of 2022 so far and the highest residential sale on the southside of Brisbane on record.

The recent flood event in late February 2022 and into early March, is expected to see the broader market lose some momentum, as sales activity may pause and new listing volumes coming to market are reduced. This may extend to the luxury end of the market in the short term.

Demand remains extremely strong in the two most popular regions for capital city escapees, being the Gold and Sunshine Coasts. With the reopening of the Queensland border in early December 2021, demand and activity across the luxury real estate market has intensified further across these two markets.

On the Gold Coast both the southern beachside suburbs and the broad water suburbs continue to dominate as the in-demand suburbs from affluent buyers, looking to take advantage of the lifestyle on offer. A number of trophy home sales have already been reported this year, led by a handful of sales above the $10M mark, with a number of these being made in off market deals and in record time.

Similarly, on the Sunshine Coast, the prestige/luxury market continues to see demand fail to ease. Despite more listings becoming available in early 2022 strong results are still being to be reported.  There were a reported 25 sales above the $5M threshold across the Noosa region over the final three months of 2021, with 2022 reportedly already seeing a number of high-end homes transact, with several of these, although not confirmed, believed to be in the $20M to $30M price range.

Important information

The information contained in this article is gathered from multiple sources believed to be reliable as at March 2022nd is intended to be of a general nature only. It has been prepared without taking into account any person’s objectives, financial situation or needs. NAB recommends that you seek independent legal, property, financial and taxation advice before acting on any information in this article. ©2022 NAB Private Wealth is a division of National Australia Bank Limited ABN 12 004 044 937 AFSL and Australian Credit Licence 230686.

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