NEW WAVE: THE EVOLUTION OF AUSTRALIA’S COASTAL LUXURY
From the shacks of yesterday to the sculptural sanctuaries of today, Australia’s coastal architecture has matured into a global benchmark for design.
From the shacks of yesterday to the sculptural sanctuaries of today, Australia’s coastal architecture has matured into a global benchmark for design.
In the land down under, the beach is in our DNA. So is it any wonder that Australian architecture is leading the world in luxury coastal design?
With about 85 per cent of our population living within 50 kilometres of the coastline, we’ve perfected the art of the beach house. Yet over the past two decades, there’s been a sophisticated shift in the traditional coastal cottage.
The residential revolution that has washed over our most valuable waterfront locations has replaced the original weatherboard “shacks” by the sea with a contemporary design movement shaped by admiration and respect for the natural environment.
No longer simply about the view, today’s coastal architecture is about creating beautiful homes that perform seamlessly in an increasingly volatile climate while meeting the rising tide of high-net-worth buyers who want it all.
From infinity pools to wellbeing spaces that connect with nature, one-time weekenders have been transformed into permanent escapes, providing year-round indulgence.

An island home
Belgian-born, Tasmania-based architect Lara Maeseele believes the quintessential coastal home has become a finely tuned instrument. With more vacant land to experiment with, and lower entry prices, she says the Apple Isle is perfectly placed for architects and homeowners to explore the new-age beach house.
“A highlight in Tassie is you can find these amazing vacant blocks on the coastline, and still be blown away by the unexpected views,” she says.
Having studied in Belgium and worked in London, Maeseele brings a northern European minimalist sensibility to the Australian beach house.
“Our way of life is so complex. When we get home, it’s nice to slow down, to declutter and find some peace and quiet.”
Nebraska House on Bruny Island took home the 2025 HIA Tasmanian Home of the Year and earned a commendation at the Houses Awards, but Maeseele still affectionately refers to her design overlooking the D’Entrecasteaux Channel as a “shack.”
“What we tried to do was make sure that from the foreshore, it was kept small and consistent with the neighbouring properties, and that’s the luxury element that I see in the shack. It sits quietly in its setting.”
With a water backdrop from most rooms, she says the ocean was a primary player when designing the house, but light was just as important for the clients.
“Both the western and eastern elevations slide wide open so it feels like a bit of an umbrella,” she says. “Then in winter, it’s fully insulated and glazed. When the sun sets, you have the most beautiful evenings, feeling cosy and sheltered while watching the wind and water outside.”
True to her European roots, Maeseele believes that when it comes to aesthetically pleasing and functional coastal design, the less-is-more approach should drive every project.
“We’re on an island, so we’re very aware any build leaves an impact,” she says. “We chose lightweight materials so, in the end, the house could be dismantled and the timber reused.”

Thriving by the sea
Sydney architect Jon King, who has designed both beach houses and boutique hotels, says the new generation of coastal design is a balancing act between luxury and environment.
Even in today’s dazzling designs, he believes comfort should still overshadow spectacle.
“If you’re going to make an exceptional beach house, it has to adapt. It needs to be beautiful when the sun is shining and the whales are jumping out of the water, but the next day it needs to withstand horrendous southerlies and wild storms,” he says.
“The material choices are vital because they need to look great, but last in that salty environment and in extreme winds and rain.”
What was once the domain of fibro cottages has developed into a sea of enviable, state-of-the-art designs.
“For a long time, we lived simply in beach environments because the land was cheap and our buildings were unsophisticated. But now, living on the coast has become coveted, even fetishised. People are making statements through architecture, and that changes everything.”
He says that in an effort to connect with nature, the temptation can be to build with vast walls of glass to capture the ultimate panorama, but subtle design can be more successful when it gives the dramatic backdrop a curated cameo.
“Most coastal locations are suburban in nature with small blocks and neighbours either side, so you can’t always get the view you want,” he says.
“But you can frame it beautifully rather than opening everything up to the elements.”
Cheyne Fox of White Fox Gold Coast, who has recently listed one of only two houses on Hayman Island in the Whitsundays, agrees that Australia’s coastal homes are unparalleled.
“Gone are the days when people wanted their properties to stand out and look at odds with the surrounds. Today’s luxury designs are very much about fitting in,” Fox says.
The Residence at Hayman spans three levels and offers more than 1,400 square metres of internal and external living space.
Designed by the late, internationally renowned architect Kerry Hill, it also features breezeways, terraces and an infinity pool designed to embrace the subtropical environment.
“When you get to Hayman Island, you get calico bags. There are no plastic bottles or even cars. There is a true respect for the environment, being so close to the Great Barrier Reef. And as such, the architecture reflects that ethos.”
She says high-net-worth buyers will pay top dollar for such indulgent and considered coastal designs.
“This is a once-in-a-lifetime proposition for a purchaser, but also a once-in-a-lifetime proposition for an agent.”
The Australian leather house has opened an immersive four-day pop-up in Manhattan, unveiling its Bloom Collection and redefining what a product launch can look like.
Following the successful launch of its Palais Collection, MAISON de SABRÉ has unveiled a new modular handbag system offering more than 720 styling combinations.
The US housing market remains under pressure as high mortgage rates continue to weigh on affordability and demand. Industry leaders say 2026 has been one of the toughest years for home sales, with slower price growth, weaker mortgage activity, and fewer buyers entering the market. However, experts say reduced competition and more price cuts could create opportunities for well-prepared buyers.
The typically busy spring season for the housing market was a dud, and the summer isn’t looking much brighter.
Housing services companies like Zillow Group and Rocket RKT +3.78% were loud and clear last week on earnings calls: Rocket CEO Varun Krishna called the quarter through June “one of the toughest spring housing markets in years.”
Jeremy Hofmann, Zillow’s chief financial officer, said on a conference call that the company predicted earlier this year that the market for mortgages would be flat. “We actually now think it’s going to be down low-to-mid-single digits,” he said.
The rest of 2026 will remain challenging for mortgage origination volume, says KBW analyst Bose George. The question now is what happens in 2027. “If mortgage rates remain [around] 6.75%, I think that’s going to be challenging even for next year,” he says.
But what’s bad news for mortgage companies could be a positive for bargain hunters. Buyers can expect prices to grow more slowly—or mildly decline—with less competition as long as mortgage rates remain unpredictable.
Mortgage rates at the beginning of the year were solidly below year-ago levels, notes Zillow senior economist Kara Ng. But they surpassed last year’s levels recently, she adds, referencing Freddie Mac’s weekly survey of 30-year fixed mortgage rates. Last week’s reading, at 6.69%, was higher than year-ago levels for the first time in 2026.
“From the affordability point of view, it’s going to get more challenging in the second half of the year,” she says. “And when affordability gets more challenging, that impacts sales and home price appreciation.”
Mortgage application data tracked by the Mortgage Bankers Association has cooled since the beginning of the year. The trade group expects that the number of mortgage originations in the remaining two quarters will lag behind last year’s levels, after exceeding 2025 levels in the first half.
Rocket’s early-stage data—which the company told Barron’s it derives from its brokerage Redfin, demand for its mortgage products, and signs in its servicing portfolio that a homeowner is preparing to refinance or move—“leads us to expect the third quarter mortgage market to be smaller than the second,” Chief Financial Officer Brian Brown, said on the company’s call. He added that such an occurrence is “something the industry has not seen since 2022.”
Prices will be about flat nationally, Ng says. Zillow’s most recent forecast, which shows how values are expected to change in the year ending June 2027, show them dropping in roughly half of the 100 largest U.S. metros for which data is available.
Buyers aren’t rushing in at a time when mortgage costs are rising and unpredictable. But those with the right combination of patience and cash could stand to benefit. “If you are financially qualified to buy a starter home, you are facing less competition and you’re more likely to get a price cut,” Ng says.