Australia’s smaller capitals, Perth and Brisbane, are outpacing Sydney and Melbourne in luxury market performance, offering new opportunities for residential property investing in Australia.

Knight Frank’s Prime Global Cities Index (PGCI) for Q1 2025 ranks Perth 16th globally, with prime property prices up 3.8% in the 12 months to March. Brisbane follows at 18th, with luxury values rising 2.8%.

In contrast, Sydney sits at 36th with prices down 0.7%, and Melbourne ranks 40th with a 2.1% decline.

The index tracks prime residential price movements across 44 global cities, with Seoul taking top spot, recording 18.4% growth.

Adam Ross, Associate Director at Knight Frank’s Australian partner McGrath Estate Agents, says prestige markets are set for continued growth through 2025, driven by limited supply and increased demand.

Particularly from returning expats taking advantage of currency conditions.

For investors, tight stock and rising demand signal strong capital growth potential in Australia’s luxury housing markets.