Genuine prestige market defies property downturn - John McGrath

Australia’s most expensive homes are proving their worth even in a market correction and amidst warnings that high-end properties are now feeling the impact of this downturn.

But high-end properties don’t take into account the true prestige market which comprises sales in the price bracket upwards of $5 million or generally speaking, the top 5% of all property transactions.

To put this into context, Cotality shows Sydney’s median dwelling value is just over $1.2 million with Brisbane’s value standing at $1.08 million. *

It’s also important to understand that prestige vendors and buyers are more concerned with geopolitical issues and unrest in the Middle East, for example, rather than focusing on the domestic issues at play. This includes movement in Australia’s interest rates although they will monitor these changes. As a result, prestige buyers will often transact without a mortgage.

Likewise, Westpac Private Bank’s 2026 Prestige Property report noted that prestige sales are driven by capital availability, property quality and the scarcity of these listings and not borrowing capacity. Investment buyers are also less reliant on rental yields or tax settings.