Australia Luxury Residential Real Estate Market Size
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 23.88 Billion |
| Market Size (2029) | USD 31.58 Billion |
| CAGR (2024 - 2029) | 5.75 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Australia Luxury Residential Real Estate Market Analysis
The Australia Luxury Residential Real Estate Market size in terms of transaction value is expected to grow from USD 23.88 billion in 2024 to USD 31.58 billion by 2029, at a CAGR of 5.75% during the forecast period (2024-2029).
- In Australia, the rising population of High Net Worth Individuals (HNWIs) is fueling demand for luxury properties, especially in major metropolitan hubs like Sydney and Melbourne.
- The limited availability of high-end properties, particularly in coveted areas such as Sydney Harbour, continues to intensify competition and demand. For example, in April, the national median home value in Australia reached a record high of USD 774,000, marking a 6.6% increase since 2023. While housing stock remains limited, prices surged 20% in Perth and 14% in Adelaide year-over-year.
- According to Industry Association’s latest Prime Global Cities Index, all four Australian (Perth, Sydney, Brisbane, Melbourne) cities saw an uptick in luxury residential property prices. Leading the pack was Perth, which saw a 3.7% rise over the past year up to June. Sydney followed with a 3.1% increase, then came Brisbane at 2.4%, and finally Melbourne, which saw a modest 0.6% uptick.
- These developments have heightened interest from offshore buyers in Australia's luxury real estate market. In response, the Foreign Investment Review Board (FIRB) revamped its foreign investment framework policy in May. The updated regulations promise a streamlined application process for investors with a history of compliance. Notably, the FIRB aims to process 50% of applications within the standard 30-day review window.
- Residential real estate is witnessing a surge in foreign investment, with transactions up by 27% from the previous year 2023. New dwellings captured 49.3% of foreign investments, while vacant residential land attracted 16.7%. Notably, international buyers hailing from China, Hong Kong, and India are leading the charge in residential real estate purchases, as highlighted by Industry Associations in September 2024.
Australia Luxury Residential Real Estate Market Trends
Ultra High Net Worth Individuals Driving the Demand for Prime Properties
- Australia's luxury residential real estate market thrived in 2024, especially in smaller cities known for their lifestyle offerings. Reports from industry associations indicate that the population of Ultra High Net Worth Individuals (UHNWIs) in Australia is on the rise, projected to reach 27,330 by 2026. While the COVID-19 pandemic had its repercussions, most High Net Worth Individuals (HNWIs) in Australasia saw their wealth increase. In contrast, a segment of the population grappled with rising inflation and a heightened cost of living.
- Sydney currently boasts the highest concentration of UHNWIs in Australia, a status it's set to retain until at least 2026, with projections of 6,308 UHNWIs. Meanwhile, Melbourne is poised for the most substantial growth, anticipating a 34% surge, bringing its UHNWIs count to 4,968 by 2026. Following Melbourne, Brisbane is projected to have 2,449 UHNWIs, and Perth is expected to host 2,408, as per reports from Industry Associations.
- Notably, over 15,000 Australians have already crossed the UHNWI threshold, with an additional 4,000 expected to join their ranks in the next four years from 2024. In conclusion, the increasing number of UHNWIs in Australia is significantly driving the demand for luxury residential real estate, particularly in cities like Sydney and Melbourne. This trend is expected to continue, shaping the market dynamics over the next few years.
Sydney's Luxury Demand Surges, While Melbourne's Notable Sales Propel the Market
- According to Industry Association's Global Prime Residential Forecast, both Sydney and Melbourne ranked among the top 10 cities witnessing an uptick in luxury property price growth projections for 2024. Specifically, Sydney's luxury residential property growth forecast for 2024 was adjusted from a stagnant 0% in 2023 to a promising 3%. In contrast, Melbourne's forecast saw a shift from a slight decline of -1% in 2023 to a modest growth of 1% in 2024. These adjustments underscore the cities' stronger-than-anticipated performance throughout 2023 and into 2024.
- Sydney dominated the nation's luxury property sales in the first half of 2024, buoyed by a robust demand for high-end properties amidst a constrained supply. Meanwhile, Melbourne's Toorak emerged as the standout luxury suburb, but other areas like East Melbourne, South Yarra, Armadale, Kew, Hawthorn East, Brighton, and Portsea in the Mornington Peninsula also showcased significant activity.
- In Sydney, luxury property transactions remained vibrant across several suburbs. Notable areas included Point Piper, Bondi, Mosman, Bellevue Hill, Darling Point, Woollahra, Double Bay, Palm Beach, Centennial Park, Maroubra, Coogee, Manly, Vaucluse, and Rose Bay, all of which have seen consistent sales since the year's onset.
- In conclusion, both Sydney and Melbourne have demonstrated remarkable resilience and growth in their luxury property markets from 2023 to 2024. The upward revisions in their forecasts reflect a robust demand and limited supply, positioning these cities as key players in the global luxury real estate market.
Australia Luxury Residential Real Estate Industry Overview
The Australian luxury residential real estate market is competitive with the presence of local and international players. The Australia Luxury Residential Real Estate Market can be defined as a semi-consolidated market. Some of the top players in the market are Metricon Homes, James Michael Homes, Stunning Homes, Rossdale Homes, and Medallion Homes.
Domestic developers are increasingly entering joint ventures, drawn by the rising influx of international funds and foreign capital. This move not only helps them establish a stronger presence in the country but also bolsters their financial strength and management expertise.
Australia Luxury Residential Real Estate Market Leaders
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Metricon Homes Pty Ltd.
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James Michael Homes
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Stunning Homes
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Rossdale Homes
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Medallion Homes Pty Ltd.
*Disclaimer: Major Players sorted in no particular order
Australia Luxury Residential Real Estate Market News
- September 2024: Loutraki Aussie Real Estate Development, a subsidiary of Australia's 'Nucorp Constructions', has unveiled a luxury residential project in Dubai, emphasizing sustainability and modern specifications tailored for an eco-friendly environment.
- August 2024: Arada, a Dubai-based master developer, is making its first foray outside the UAE, launching operations in Australia. The company has established a new office in Pyrmont, a suburb of Sydney, and is eyeing multiple projects in Australia's largest city. With a project pipeline valued at AED6 billion, Arada aims to play a pivotal role in Sydney's urban renewal, addressing the city's pressing housing shortage.
- March 2024: Home Lands Group of Companies, a prominent player in the real estate and property development arena, proudly unveils its latest venture: Home Lands (Melbourne) PTY LTD. This marks the group's strategic expansion into the Australian real estate market. With a focus on both apartment and land sales, Home Lands (Melbourne) is dedicated to delivering unmatched service and convenience to meet the diverse real estate needs of its clientele.
Australia Luxury Residential Real Estate Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Background
1.2 Study Assumption and Market Definition
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS & DYNAMICS
4.1 Current Market Overview
4.2 Market Dynamics
4.2.1 Market Drivers
4.2.1.1 High Net-Worth Individuals
4.2.1.2 Strong Economic Performances
4.2.2 Market Restraints
4.2.2.1 Affordability Concerns
4.2.2.2 Regulatory Changes
4.2.3 Opportunities
4.2.3.1 Sustainable Luxury
4.2.3.2 Smart Homes
4.3 Industry Attractiveness - Porter's Five Forces Analysis
4.3.1 Threat of New Entrants
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Bargaining Power of Suppliers
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
4.4 Industry Value Chain Analysis
4.5 Government Regulations and Initiatives in the Industry
4.6 Impact of Geopolitics and Pandemic on the Market
5. MARKET SEGMENTATION
5.1 By Type
5.1.1 Apartments
5.1.2 Condominiums
5.1.3 Villas
5.1.4 Landed houses
5.2 By Cities
5.2.1 Sydney
5.2.2 Perth
5.2.3 Melbourne
5.2.4 Brisbane
5.2.5 Other Cities
6. COMPETITIVE LANDSCAPE
6.1 Market Concentration Overview
6.2 Company Profiles
6.2.1 Metricon Homes Pty Ltd.
6.2.2 James Michael Homes
6.2.3 Stunning Homes
6.2.4 Rossdale Homes
6.2.5 Medallion Homes Pty Ltd.
6.2.6 Ray White Group
6.2.7 LJ Hooker
6.2.8 Harcourts
6.2.9 Belle Property
6.2.10 Mirvac*
- *List Not Exhaustive
7. FUTURE OF THE MARKET
8. APPENDIX
8.1 Macroeconomic Indicators (GDP Distribution, by Activity)
8.2 Economic Statistics - Transport and Storage Sector Contribution to Economy
8.3 External Trade Statistics - Exports and Imports by Product and by Country of Destination/Origin
Australia Luxury Residential Real Estate Industry Segmentation
Luxury residential real estate is characterized by its prime location, elevated price, spaciousness, use of valuable materials, expert design, high-end amenities, and often, a prestigious history. This report delves into the Australian luxury residential real estate market, offering a comprehensive analysis. It encompasses an evaluation of the economy and the contribution of various sectors, an overview of the market, size estimations for key segments, emerging trends, market dynamics, and geographical insights.
Australia's luxury residential real estate market is segmented by type (apartments and condominiums, villas, and landed houses) and by cities (Sydney, Perth, Melbourne, Brisbane, and other cities). The report offers market sizes and forecasts in value (USD) for all the above segments.
| By Type | |
| Apartments | |
| Condominiums | |
| Villas | |
| Landed houses |
| By Cities | |
| Sydney | |
| Perth | |
| Melbourne | |
| Brisbane | |
| Other Cities |
Australia Luxury Residential Real Estate Market Research Faqs
How big is the Australia Luxury Residential Real Estate Market?
The Australia Luxury Residential Real Estate Market size is expected to reach USD 23.88 billion in 2024 and grow at a CAGR of 5.75% to reach USD 31.58 billion by 2029.
What is the current Australia Luxury Residential Real Estate Market size?
In 2024, the Australia Luxury Residential Real Estate Market size is expected to reach USD 23.88 billion.
Who are the key players in Australia Luxury Residential Real Estate Market?
Metricon Homes Pty Ltd., James Michael Homes, Stunning Homes, Rossdale Homes and Medallion Homes Pty Ltd. are the major companies operating in the Australia Luxury Residential Real Estate Market.
What years does this Australia Luxury Residential Real Estate Market cover, and what was the market size in 2023?
In 2023, the Australia Luxury Residential Real Estate Market size was estimated at USD 22.51 billion. The report covers the Australia Luxury Residential Real Estate Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the Australia Luxury Residential Real Estate Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Australia Luxury Residential Real Estate Industry Report
Statistics for the 2024 Australia Luxury Residential Real Estate market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Australia Luxury Residential Real Estate analysis includes a market forecast outlook 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
Australia Luxury Residential Real Estate Market Report Snapshots
