Despite a volatile year for the broader housing sector, Australia’s luxury market continues to outpace expectations — but not every city is sharing in the spoils.
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Australia’s top-tier property market has not only held its ground but surged ahead, outperforming median market trends over the past decade.
According to Ray White’s Luxury Market Report 2025, demand for prestige homes with location, character, and uniqueness has fuelled long-term price growth, with Sydney and Brisbane emerging as key players in the nation’s high-end housing boom.
While the broader property market has faced its share of turbulence, the report reveals that luxury homes, particularly those in tightly held or lifestyle-rich areas, are proving to be recession-proof investments.
Ray White’s data shows that over the past decade, luxury house prices have grown 84%, compared to 70% growth in median-priced houses. Luxury apartments, too, posted significant gains — up 58% over the same period, outpacing the 31% growth seen in median units.
This upward trajectory highlights what affluent buyers have long known: scarcity and quality always command a premium.
“Luxury buyers are motivated by lifestyle and legacy — not just returns,” the report states. “They seek homes with architectural character, privacy, exclusivity and proximity to amenities. And increasingly, they’re willing to pay for uniqueness.”
In a rare deviation, 2023 marked the first time in ten years that the median market outperformed the luxury market. This was attributed in part to tighter credit conditions, a cautious global investment climate, and a flight to perceived value in the lower-priced brackets.
But Ray White analysts believe this was a temporary recalibration rather than a trend reversal.
“Across the long-term horizon, prestige continues to outperform,” the report concludes. “The recent dip was more reflective of macroeconomic sentiment than a fundamental shift in demand for luxury.”
Unsurprisingly, Sydney remains the juggernaut, commanding 64% of all national luxury house sales and 51% of unit sales. Harbour views, limited supply and generational wealth underpin its continued dominance.
But perhaps the most compelling story of 2025 is Brisbane’s ascent. For the first time, luxury house and apartment prices in Queensland’s capital have crossed the $1 million threshold, and buyer activity shows no signs of slowing.
Migration from southern states, lifestyle appeal, and the impending 2032 Olympics are all contributing to the city’s new prestige identity.
“Brisbane is no longer the underdog,” the report says. “Buyers from Sydney and Melbourne are increasingly seeing it as a value play — and that’s driving demand for luxury stock.”
The Gold Coast, meanwhile, has quietly expanded its market share in the luxury unit space by 9%, thanks to surging demand from downsizers and international buyers. Waterfront apartments and branded residences are proving particularly hot.
In contrast to the upbeat figures from Queensland and New South Wales, Melbourne has experienced a notable retreat. The city’s share of luxury unit sales has fallen 4%, and luxury house sales have dropped 12%.
While the report stops short of sounding alarm bells, it attributes Melbourne’s cooling to shifting lifestyle priorities, post-pandemic relocation patterns, and ongoing population churn.
“Melbourne’s prestige market isn’t declining — it’s simply being rebalanced,” the report notes. “But with the right architectural product and location, the appetite is still there.”
More than ever, luxury buyers are seeking differentiation — properties that offer not just size or finishes, but a distinctive story. Think: heritage homes with contemporary restorations, homes with water access or panoramic views, and penthouses in boutique developments rather than high-density towers.
Homes that stand out are commanding serious premiums — often well above suburb medians — especially in traditionally non-prestige postcodes.
“The days of ‘McMansions’ being considered luxury are over,” the report adds. “Modern buyers want soul, not just square footage.”
Whether it’s a terrace in Paddington, a penthouse in Newstead, or a vineyard in the Adelaide Hills, the message from the Ray White Luxury Report is clear: when it comes to high-end real estate, scarcity is king.
As buyers seek long-term value and lifestyle investments, the prestige market is expected to remain resilient, particularly in locations with strong infrastructure, lifestyle appeal, and development restrictions that limit supply.
In a world of economic uncertainty, luxury real estate is increasingly being seen not just as an asset, but as a form of security, both financial and emotional.
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The actress, who felt a ‘spiritual calling’ to the Harrison, N.Y., property, is asking $4.99 million for the home.
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Two years ago, fed up with the long drive to the Hamptons, the actress and daytime talk-show host Drew Barrymore started looking for a weekend home in Westchester County.
When she saw a circa-1700s mansion for sale, Barrymore said, she felt a karmic connection to the Harrison, N.Y., property.
“I walked in, and I was, like, ‘I know my family’s been here. I know that I have to work on this house. I know that I’m supposed to be doing this,’” said Barrymore, 51 years old, who lives primarily in Manhattan with her two daughters. “It was like a strange, spiritual calling.”
It turned out she actually did have a connection to the area: Her great-aunt, the late actress Ethel Barrymore, had a home in nearby Mamaroneck, where an enclave known as Barrymore Lane is widely believed to be named for the family.
Barrymore bought the roughly 12-acre estate for $4.4 million, according to property records. She did an extensive renovation; she has a deep interest in interior design and has considered pursuing it professionally. “Between Pinterest, thrifting and a can of paint, there’s nothing you can’t do,” Barrymore said with a laugh.
But roughly two years later, the actress is listing the property for $4.99 million. The renovation took longer than expected, she said, and the family’s lives have changed in the interim.
The estate includes a roughly 5,600-square-foot, five-bedroom main house, a pool and a poolhouse with an additional bedroom, according to Kori Sassower of Compass.
Barrymore said she previously owned a home in Sagaponack, N.Y., but the distance from the city and the weekend traffic to the Hamptons became untenable as her children’s schedules filled up with social and sporting activities.
Harrison, by contrast, offered accessibility and charm. The property, located roughly an hour from Manhattan, is a short drive from picturesque Rye and Bronxville, while nearby Bedford has drawn celebrities. The median sales price for a home in Harrison is around $1.1 million, according to Redfin.
The property’s expansive acreage gave Barrymore a sense of being close to nature. “It’s really like being in your own personal park,” she said. “There are tons of deer. There are pheasants, there are ducks, there are rabbits.”
When she purchased the home, Barrymore said, she thought it would need only a cosmetic renovation. Instead, it turned into a “complete internal gut,” with much of the plumbing, heating and air conditioning replaced, she said.
Barrymore also revamped the ground floor to open up the kitchen, which felt dark and boxed in. “It took a year of engineering to figure out how to accomplish it,” she said.
Barrymore declined to comment on the exact costs of the renovation, but compared herself to actress Shelley Long’s character in the 1986 film “The Money Pit.”
Some of the rooms have maximalist patterned wallpaper, elaborate art walls and heavy, old-fashioned draperies. Others are minimalist. “Every little corner gets scrutinised for what it could be,” she said. “If I see a closet, it’s probably not a closet, it’s going to become some secret hideout for my kid, or I’m going to take the door off and turn it into a sculptural piece.”
In the home’s living room, Barrymore said she cycled through multiple paint colours, including pink and green.
“I painted it all green because I was dying for greenery. And then the summer came, and I was, like, ‘Oh, God, everything is green!’”
She spent time at the property even while it was under construction. When they didn’t have a kitchen, the family cooked dinner on a grill outside and drank boxed water, she said.
When workers were redoing the pipes, Barrymore couldn’t shower. “I lived in the house in the most primitive of scenarios,” she said. “It’s some of my favourite times and memories.”
When Barrymore celebrated her birthday at the property in February, she and two friends decided to grill for old time’s sake, even though the kitchen was fully functional.
“There we were in zero-degree weather with parkas, hoodies, gloves and face masks. But we were, like, ‘We gotta do it. It’s the tradition.”
Barrymore, who grew up in Los Angeles, stars in films like “Never Been Kissed,” “Riding in Cars With Boys” and “Charlie’s Angels.” Her eponymous daytime talk show launched in September 2020.
Sassower is listing the property with her colleague Brian K. Lewis in New York City.
