Sydney's luxury property market remains resilient, attracting international buyers despite a slight reduction in affordability. Limited stock, strong demand, and a robust economy continue to drive interest from affluent buyers, with Sydney retaining its status as Australia's flagship luxury property market.
However, the Gold Coast has emerged as a more affordable alternative, offering luxury properties at a better value. For US$1 million, buyers can secure 119 square metres of premium real estate, making it Australia's most accessible luxury property market. Brisbane and Perth follow suit, providing more value than Sydney and Melbourne.
In the coming year, Sydney’s luxury property prices are expected to increase by just 1 per cent, reflecting a slowdown in the market amid geopolitical uncertainty and a looming federal election. Despite this, Sydney’s top-tier market remains attractive due to its resilient stock market, many cash buyers, and continued supply shortages.
The trend towards downsizing into luxury apartments and exclusive homes is gaining momentum, with many high-net-worth individuals focusing on Sydney's premium properties. Globally, the luxury real estate market thrives, with Miami and Dubai experiencing the strongest price growth. Established markets like London, New York, and Paris have seen price stabilisation.
Sydney ranks 67th in the Prime International Residential Index, with a modest price growth of 1.1 per cent forecast for 2024. Cross-border investment into Sydney real estate reached US$8.6 billion last year, underscoring the city’s ongoing appeal to foreign investors despite the high entry costs. The demand for luxury real estate remains strong, driven by cash buyers and private capital in established luxury markets.
