While many locations around Australia have enjoyed strong capital growth over the last year, the luxury end of the market has been a little quiet, but that’s not unusual at times of economic uncertainty.

If you think about it, you don’t need a new $20 million luxury home when you’re $15 million home suits you quite nicely.

On the other hand, as interest rates fall next year, it is likely that wealthy buyers with significant equity in their homes will re-enter the market, buoying the more expensive end of the market.

However, over the past 12 months, cheaper properties saw the strongest price growth, with houses in the lowest percentile increasing by 12.2%, while our most expensive homes have seen a price slowdown,

But what is interesting to note is that, over the long term, Australia’s most expensive homes have significantly outperformed the rest of the market.

Over the past decade, median-priced houses have increased by 78% but, in comparison, houses priced in the top 5% have doubled.

Nerida Conisbee, Ray White Group chief economist, explains that a big driver of luxury house price growth is simply land value.

“There are only so many properties you can build in our most expensive suburbs, which tend to be located close to beaches, bays and rivers,” she said.

“Anything with even more unique characteristics that are hard to replicate, such as a view or close proximity to the water, are likely to have increased even further.”

Another driver has been renovation activity, which surged during and immediately after the pandemic.

Luxury homes have become even more expensive over time as more investment has taken place, and while it is not possible to measure, it is likely a higher proportion of well-located luxury homes have been renovated than the rest of the market and almost certainly true that more has been spent on them.

So where are these luxury homes being sold?

The top 10 highest property sales in the last 12 months

By compiling data of the highest property sales made in 2024, we can see that NSW continues to dominate.

Of the top 10, 8 are located in NSW (and mostly around the eastern suburbs area), while 2 of the year’s highest property sales are located in Toorak, Melbourne.

At the top of the list is 550 New South Head Road, Point Piper.

Known as “Elaine”, the sprawling waterfront mansion in Sydney’s east was sold by Atlassian co-founder Scott Farquhar and his wife Kim Jackson, matching the national price record.

The 160-year-old, seven-bedroom, 5-bathroom mansion was built in the early 1860s.

Atlassian co-founder Scott Farquhar and his wife, Kim Jackson, sold the property to an unidentified buyer after buying it in 2017 for $71 million, breaking the national house price record at the time.

They sold it for about the same price they paid for Uig Lodge, a nearby baronial mansion, in 2022.

In second, third and fourth place on the list were 120-122 Wolseley Road in Point Piper, 42 Billyard Avenue in Elizabeth Bay and 27 Victoria Road, Bellevue Hill, all located in NSW and all of which sold around the $80 million mark.

The two Victorian houses in Toorak came in sixth and seventh place.

14 St Georges Road, Toorak and 54 Albany Road, Toorak sold for $40 million each in February and March this year respectively.

The outlook for luxury property

According to Conisbee, the outlook for luxury property remains positive despite the general slowdown in the market currently occurring.

“The Federal Government Housing Accord seeks to build more homes within established suburbs.

“However, it is likely that most of them won’t be built in our most expensive suburbs.

“Owning a luxury house or apartment in our most expensive suburbs is set to continue to be a solid investment over the next decade, providing of course you can afford to buy one in the first place,” she said.

A final note

While these top 10 highest property sales for 2024 make interesting reading, they aren’t the type of property I would recommend investing in.

At Metropole, we always advise on the importance of investment-grade properties and locations, rather than chasing a hotspot or growth area.

That’s areas and properties which hold their value over the long term, rather than benefit from an uptick in demand.

But even before looking for the right location, make sure you have a Strategic Property Plan to steer you through the upcoming challenging times our property markets will encounter.

Aside from remembering that you should focus your efforts on investment-grade properties and locations, you also need to remember that property investing is a process, not an event.

That means that things have to be done in the right order – and selecting the location and the right property in that location comes right at the end of the process.

And that’s because what makes a great investment property for me, is not likely to be the same as what would suit your investment needs.

About Leanne Spring
Leanne is a highly experienced Buyers Agent in the Brisbane Real Estate market. Leanne became a passionate lover of property in 2001. Since then, both professionally and personally, she has been involved in all aspects of property including purchasing, negotiating, renovating, and selling.