Prestige Market Snapshot Q1 2025
Sydney’s prestige property market remains one of the world’s most sought-after luxury arenas. Despite global uncertainties, trophy homes from Point Piper to Killara continue to outperform, driven by scarcity, lifestyle appeal and rising international interest. But with heightened competition, nuanced auction dynamics and off-market opportunities shaping each precinct, navigating this segment demands specialist expertise. In this article we unpack the latest trends including who’s buying, which areas and where property prices are headed.
Record-Breaking Sales & Scarcity Premium
In 2024, Sydney’s luxury market hit new heights when Scott Farquar’s Point Piper estate fetched AUD $130 million; matching Australia’s all-time house-price record, and three of the year’s top four sales took place in Point Piper and Bellevue Hill. The combined value of the top 25 Sydney luxury house sales leapt from AUD $507.4 million in 2023 to AUD $595.9 million in 2024 . This near 18% jump underscores the intensifying demand for trophy assets amid perpetually tight supply.
Q1 2025 saw clearance rates in ultra-prime suburbs like Vaucluse and Mosman soar above 80%, even as the national luxury clearance dipped below 60%. Meanwhile, roughly 40% of prestige homes are now purchased off-market; highlighting the power of relationships in this end of the residential property market.
Who’s Buying: Local Confidence Meets Global Opportunity
Local buyers remain the backbone of Sydney’s prestige-home market. According to CBRE’s Q1 2025 Valuer Survey, 53% of valuers report ‘moderate’ demand in their luxury precincts and 14% observe ‘strong or very strong’ buyer interest (chiefly from those seeking to secure Harbourside addresses). At the same time, a softer Australian dollar and Sydney’s safe-haven reputation have drawn ultra-high-net-worth international buyers (especially ex-pat Australians) back into the fray, particularly for trophy homes above AUD $20 million.
Growth Corridors
Eastern Suburbs jewels (from Vaucluse to Double Bay) continue to deliver 5–7% annual capital appreciation, driven by unmatched harbour views and land scarcity. Harbour-fringe penthouses are bouncing back, offering lock-and-leave convenience with solid rental yields. Meanwhile, premium pockets of Mosman and Northbridge have recorded 3–4% gains as families and downsizers seek blue-ribbon schools and harbour access at relatively softer entry points.
This year Sydney’s prestige property market is defined by record-breaking highs, nuanced vendor sentiment and a growing reliance on off-market channels. To understand better how to navigate this competitive arena and secure your dream home Contact Goldman Bros.
