Location, location, location? More like lifestyle, lifestyle, lifestyle
For many years defining ‘luxury’ came down to the price bracket and the most-coveted suburbs, but for many Australians, luxury is increasingly becoming how a home allows you to live.
While Sydney remains the most expensive luxury market with the top five per cent of houses exceeding $4.79 million, coastal Queensland has surged ahead. Luxury house prices have risen 152 per cent on the Gold Coast and 159 per cent on the Sunshine Coast over the last decade, suggesting buyers are prioritising open space, flexibility and quality of life, over particular postcodes and CBD proximity.
The momentum in Perth isn’t slowing down
Perth is in its third consecutive year of double-digit growth in the luxury space with no signs of slowing. In the last 12 months, City Beach in Perth saw the highest growth in luxury house prices by 18 per cent year on year, closely followed by Claremont up by 17 per cent and Mosman Park–Peppermint Grove up by 16.9 per cent.
This growth isn’t just a post-pandemic trend, the growth in Perth looks set to continue as prestige is becoming more distributed and the luxury market is no longer only a Sydney and Melbourne story. Perth is quickly closing the gap, and along with Brisbane, it’s now sitting within $100,000 of Melbourne in current luxury threshold prices.
A new generation of luxury buyers
The profile of luxury buyers is shifting, and CEOs and inheritors are no longer the defining standard of the market. Across the top transactions in the past year where buyer backgrounds could be established, it’s dominated by a generation of self-made entrepreneurs.
Buyers who have built their fortunes in finance, technology and e-commerce reveal not just who is buying luxury property, but where and why. While Sydney’s Eastern Suburbs remains the top destination, many of these founders aren’t anchored to a CBD. The growth in coastal areas, buyers choosing lifestyle over location and an influx of top-level home technology suggest this new generation are carefully selecting properties that align with how they live and work.
Sea or snow: the regional markets making a statement
With the definition of luxury shifting and the luxury growth seen outside of Sydney and Melbourne, it’s no surprise that the regional market has also stepped up. What once might have been more of a niche market has seen strong growth across multiple luxury precincts in the last 10 years, with the top two growth markets suggesting it’s a choice between sea and snow.
Alpine luxury markets, such as Thredbo–Perisher and Jindabyne in New South Wales, Falls Creek and Mount Buller in Victoria, saw a huge 175 per cent increase in house prices since 2016. This market shows the clearest cyclical behaviour; prices rose as demand spiked and then levelled out when interest rates began to rise.
Meanwhile temperate coastal prestige markets such as Byron Bay in New South Wales, Portsea and Lorne–Anglesea in Victoria, and Noosa Heads in Queensland saw a 132 per cent increase in the last decade. This market saw a sharp spike in house prices post-pandemic, but has shown durability as the impact of remote and hybrid work has seen buyers relocate to the coast.
The switch from smart homes to intelligent health ecosystems
Traditionally, what made a property luxury was the visual opulence; marble benchtops, statement staircases, premium finishes imported from Europe. But in 2026, luxury has transformed from homes that just look good to homes that actively make the homeowners feel good.
With Australia’s wellness economy now sitting at $141 billion, buyers are investing in environments that improve sleep, health and overall wellbeing. From responsive AI-powered systems tracking air quality, temperature, humidity and light level, sleep monitoring systems that can adjust mattress temperature, to advanced water purification and hydrotherapy. It’s not just health benefits that buyers are seeing; luxury homes that integrate these features are already achieving 15 to 30 per cent premiums over homes that don’t.
