Australia’s luxury property market has outperformed international peers, with prices holding steady despite global slowdowns triggered by rising interest rates. Knight Frank’s Prime Global Cities Index shows all four Australian cities analyzed saw price increases in the luxury segment. Perth led with a 3.7% rise over the past year to June, followed by Sydney at 3.1%, Brisbane at 2.4%, and Melbourne at 0.6%.

Globally, price growth for the top 5% of property markets slowed from 4.1% in Q1 2024 to 2.6% in Q2, with a quarter of the 44 cities tracked experiencing negative growth. “Prices in Australian markets are still benefitting from the recommencement of migration after COVID,” said Knight Frank’s Liam Bailey.

Sydney’s luxury market remains robust, driven by strong international interest, particularly from Europe, Asia, and returning expats. Meanwhile, Melbourne’s market is slightly more price-sensitive, with demand still high but dependent on properties meeting buyer expectations. Perth continues to see strong growth, fueled by interstate migration.