Two Aussie cities have firmly shed their big country town vibes, with a new report revealing why their prestige property markets are outshining Sydney and Melbourne.
The inaugural Herron Todd White (HTW) Prestige Property Monitor, which was launched today, has revealed that sentiment in the top end of the market in Brisbane and Adelaide are “hot” with a score of 8, while Sydney and Melbourne recorded a “balanced” score of just 5.
Even Perth came out ahead of the nation’s two biggest capitals with a “warm” score of 7.
This house in Bridgeman Downs, a suburb 13km from the Brisbane CBD, recently sold for $6m
HTW managing director residential Drew Hendrey said the index revealed a fascinating shift in the dynamics of Australia’s high-end property market.
“We are seeing a two-speed market at the top end across the big cities,” Mr Hendrey said. “While the prestige markets in Sydney and Melbourne are taking a breather under the weight of economic uncertainty and affordability pressures, cities like Brisbane and Adelaide are experiencing a surge in confidence.
“This reflects a broader trend of population shifts and a re-evaluation of lifestyle and value by high-net-worth buyers.”
A three bedroom apartment in Brisbane’s New Farm recently sold for $3.1m
Mr Hendrey noted that the subdued start to 2026 in Sydney was particularly telling, with a noticeable drop in listings and sales above the $15 million mark compared to previous years. “The first half of 2026 is expected to remain subdued in Sydney’s lower-end prestige market in the $5 million to $10 million bracket, as high inflation and interest rates bite,” he said.
28 Ruby St in Sydney’s Mosman sold for $38m in December
Similarly, Melbourne is tracking in line with broader market conditions, with pessimism about state property taxes and land tax obligations tempering sentiment and transaction volumes at the upper end,” the report said.
12 Yarradale Road Toorak in Melbourne sold for $19.5m in October
In contrast, Brisbane is experiencing very strong demand for high-quality, architecturally designed modern homes, with agents reporting strong buyer interest and little drop-off in enquiries over the holiday period.
“Brisbane’s prestige market is firing on all cylinders,” Mr Hendrey said.
“There is a depth of demand for premium properties that is keeping the market exceptionally buoyant.”
Adelaide is also a standout performer, buoyed by both local and interstate buyers who see relative value compared to the larger capital cities.
“Adelaide is increasingly being recognised as a prestige destination, and we expect to see this trend continue as more high-quality stock comes to market,” Mr Hendrey said.
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43A Alexandra Avenue, Rose Park, in Adelaide sold for $3.03m
Perth remains a strong market, with firming conditions driven by high demand and a chronic under-supply of premium properties.
123 Point Walter Road, Bicton, in Perth sold for $5.25m
Mr Hendrey said the HTW Prestige Property Monitor will be a valuable tool for tracking the nuances of a market segment that often acts as a barometer for the broader real estate activity and economic confidence.
“The prestige market operates on a different set of drivers to the general market,” he said.
“By capturing the sentiment of our most experienced directors on the ground, the HTW Prestige Index provides a unique and timely insight into the health of this important sector.”
HTW managing director residential Drew Hendrey
Nationally, the HTW Prestige Index sits at 6.6 out of 10.
The latest PropTrack Home Price Index revealed that national home values held relatively steady in December, with price falls in Sydney and Melbourne offsetting gains in the other states.
The national home price rose 0.1 per cent in December to reach a new record high of $880,000, but values in the nation’s two biggest capitals fell 0.3 per cent.
In contrast, home values rose 0.8 per cent in December in Adelaide (to $908,000), and 0.5 per cent in Brisbane ($1.013m) and Perth ($950,000).
Tasmania had the best performing regional market, with growth of 0.9 per cent over December ($578,000), followed by regional South Australia (0.7%, $489,000) and regional Queensland (0.5%, $790,000).
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