Australia’s luxury property market has outperformed its international counterparts, with prices remaining stable despite global economic slowdowns caused by rising interest rates. According to Knight Frank’s Prime Global Cities Index, all four Australian cities surveyed 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%.

In contrast, global 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 monitored experiencing negative growth. Knight Frank’s Liam Bailey noted, “Australian markets continue to benefit from the rebound in migration post-COVID.”

Sydney’s luxury market remains strong, bolstered by significant international interest, particularly from Europe, Asia, and returning expats. Melbourne’s market, while still in demand, is more sensitive to price expectations. Perth, on the other hand, continues to experience robust growth, driven by interstate migration.