September 9, 2022

Luxury property still in demand

Spring sees a renewed search for genuine luxury.

Quality trophy properties are resisting the squeeze from the interest rate tightening cycle, with a shortage of listings in this segment of the market keeping prices well supported. Buyers of luxury property have always been discreet and discerning with the ultra-high end of the market generally showing less cyclicality than the wider premium or broader market.

Unlike the premium and broader markets the luxury segment is influenced more so by share market performance and outlook, business executive bonuses and demand by cashed up foreign buyers and expats for luxury property.

While there does appear to have been a softening of dwelling values in both the premium and luxury segments of the market in 2022 (top 25% and top 2% respectively), the luxury market is proving to be more resilient.

The luxury end of the market has been shielded with the broader market softening, with vendors choosing to hold properties rather than sell. In the broader market, after 25% growth during 2021, prices have not-unexpectedly eased in 2022 with recent interest rate increases. This has been led by Sydney, with Melbourne and more recently Brisbane and other capital cities (excluding Darwin) entering a softening phase.

Here, we take a closer look at what’s happening in the eastern states.


The reported slowing of the wider market has not impacted the top end, with two record Melbourne sales achieved during the winter quarter and active demand for quality trophy homes. In Toorak, “Blair House” sold reported for just below $75M in August. The Georgian Revival residence designed in 1936 is set on 7,843 sqm of parkland. Meanwhile in St Georges Road a knockdown-rebuild was sold for a little over $80M, with the purchaser intending to build on the site. Both these sales well exceed the previous house price record of $52.M for the mansion known as Stonington, in Malvern sold in 2018.

Other recent significant sales in Toorak also included 61 St Georges Road $26M, 44-46 Hopetoun Road $23.6M and 35 Clendon Road ~$22M, with other sales activity at upper levels in similar prestige suburbs including Armadale ~$26.5M (52 Hampden Road), Kew $16M (52 Sackville St), Brighton $15M (5 Leslie Grove) and $13.7M (86-88 Wilson St).


The Sydney luxury market performed well during winter recording several sale results in excess of the $20M mark in 2022. There was also strong activity in the over $10M market segment, although on the back of a record 2021 with over 300 sales recorded above that mark, activity more recently has been easing.

Winter saw solid luxury activity in the traditionally affluent suburbs with a harbourfront 740sqm block of land in Point Piper selling for $27M. Key sales of luxury dwellings across various suburbs have set the pace over recent months and include Woollahra (85 Wallaroy Rd ~$35M), Double Bay (11 Pinehill Ave ~$30M), Bellevue Hill (50 Kambala Road ~$22M), Vaucluse (8 The Crescent ~$22M, 42 Wentworth Rd ~$19.5M), Burraneer (333 Woolooware Rd $20M) and a harbour front Mosman property (13 Thompson St ~$19M).

Luxury apartment sales include Bondi Beach (3/8 Notts Ave $24M), The Rocks (83 Harrington St $19M) and Darling Point (1/54 New Beach Rd ~$15M).

For those looking outside Sydney, in Byron Bay a 5.62ha property at Cooper Shoot sold for $22M meanwhile in the Southern Highlands the 49.78ha “Braesyde Estate’ sold for $22.59M.

Mosman also featured a number of properties selling over $10M with other key sales in the $10M-$15M range at Avalon Beach, Centennial Park, Bronte, Drummoyne, Point Piper and Birchgrove.


Brisbane, the Gold Coast and the Sunshine Coast in Southeast Queensland have seen consistently strong demand and associated rising prices in 2022, however more recent evidence is now pointing to a slight softening in the market.

The Brisbane Prestige Market has seen solid sales volumes and prices with more than 20 above $5M since the start of 2022, with recent sales including 18 Oxlade Dr, New Farm $15M and 29 Laidlaw Pde, East Brisbane $12.5M.

Similar to preceding years the Gold Coast remains high on the destination list for wealthy Australian and International buyers with Knight Frank’s Prime International Residential Index for Q2-2022 showing that the Gold Coast is now the 6th most expensive luxury real estate market on a global scale, up from 12th position at the end of 2021 and 22nd at the same time last year. High sales continue to be recorded in popular suburbs such as Mermaid Beach (159 Hedges Ave, $21M), Miami, Currumbin, Palm Beach, Broadbeach, Mermaid Waters and Sovereign Islands.

The Sunshine Coast, and in particular the Noosa region, remains popular with wealthy buyers. Noosa Heads and Sunshine Beach are still showing strong demand levels, particularly for well-located units, with free standing dwellings currently proving to be more tightly held. Recent sales include 32 Noosa Pde, Noosa Heads $16.2M and 58 Seaview Tce Sunshine Beach $18.75M.

Superior quality properties in the luxury segment historically continue to perform better than the broader segment and we anticipate this trend will continue during spring.

The information contained in this article is gathered from multiple sources believed to be reliable as at September 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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