From the leaf-lined streets and sprawling mansions of Toorak to the ultra-modern waterfront residences of Point Piper, prices and demand for luxury property in Australia have never been higher.
Although initially limited to the most prestigious neighborhoods, this trend has spread across the country, including Brisbane and Perth, where homes in desirable areas are increasingly being priced at several million dollars and above.
“There is a lot of wealth coming back into Australia meaning luxury properties that would typically take longer to sell have been moving quite quickly.”
“When we talk about the luxury market, we’re referring to the upper end of the prestigious property market,” says Ben Braysich, National Head of Property, Commonwealth Private.
“Overall, there is a strong appetite among high-net-worth investors for luxury real estate, thanks to buoyant migration and persistently elevated building costs. On top of this, the high demand and constrained supply of premium properties across Australia is sustaining the luxury real estate market.”
High-net-worth growth
One of the biggest changes affecting the Australian market is its strong population growth. Before the COVID-19 pandemic, around 235,000 people migrated to Australia each year. While this number was almost zero during the pandemic, in 2024 this number hit 548,800.
Off the back of this recent migration, Australia’s ultra-high-net-worth population rose by 2.9 percent, from 14,922 people in 2022 to 15,347 people in 2023, according to the 2024 ‘Knight Frank Wealth Report’.
“Inflation is decreasing and monetary policy around the world is pivoting to lower interest rates.”
“We are seeing a lot more of the expat community returning back to Australia,” Braysich notes. “For various reasons, they see Australia as a safe haven from an investment point of view compared to the uncertainty they’re seeing across other markets.
“As a result, there is a lot of wealth coming back into Australia, meaning luxury properties that would typically take longer to sell have been moving quite quickly.”
Another contributing factor is that during the pandemic, many construction companies encountered financial difficulties, leading to a reduction in the number of new, freestanding luxury homes. This has led to a shortage of luxury properties that are ready for owners to take possession of without having to undertake substantial work on the property.
As a result, luxury properties have risen approximately 30 percent since the start of the pandemic, according to property data firm CoreLogic. And this trend is likely to continue if interest rates in Australia fall.
“Inflation is decreasing and monetary policy around the world is pivoting to lower interest rates,” Braysich explains. “When this happens, more buyers are likely to come to the market, creating greater competition and further exacerbating shortages.”
Supporting home buyers
With property prices likely to remain high and even grow over the coming years, Commonwealth Private is well-placed to assist high-net-worth home buyers with the financing they need.
As one of Australia’s largest full-service private banks, Commonwealth Private is backed by the extensive resources of CommBank. With unrivaled experience in supporting clients with complex lending, Commonwealth Private offers bespoke banking and private wealth services designed to cater to the distinctive needs of high-net-worth Australians.
“Every client enjoys the personalized attention of a dedicated banker, who takes the time to gain a deep understanding of their financial situation in order to provide thoughtful and tailored advice and recommendations,” Braysich says.
“Additionally, with a dedicated credit team that understands complex needs, we can help our clients move quickly to execute a property purchase and achieve their real estate goals.”
“Our goal is for our clients to feel that the service they get from Commonwealth Private is as unique as they are, highly personalized to help them create the life they want.”
To help home buyers, Commonwealth Private runs an annual webcast called Property Pulse, where industry experts provide high-net-worth clients with a detailed insight into the residential property market in Australia.
Additionally, CommBank’s Global Economic and Markets Research team hosts webinars to discuss the cash rate and the implications for the Australian economy, following the Reserve Bank of Australia’s announcements.
“We understand that priority service makes all the difference in a market where stock is in high demand,” Braysich says confidently. “Our goal is for our clients to feel that the service they get from Commonwealth Private is as unique as they are, highly personalized to help them create the life they want, distinct from anyone else.
“We strive to be the trusted partner who stands alongside our clients as they grow and protect their wealth, for their families and the next generation.”
