A new report shows two unexpected Australian cities are among the world's hottest luxury real estate markets — and one of our state capitals is defying the trend.
Australia's ultra wealthy people are getting richer and their numbers are swelling, according to a new report. This means greater demand for scarce luxury homes, driving prices higher and affordability lower.
Yet here's the twist: despite Australia's sky-high price tags, our prime real estate remains enticingly affordable compared to other nations — with two Aussie cities named prestigious property hotspots.
Brisbane has been named one of the world’s hottest luxury property markets according to Knight Frank. Picture: Getty
Knight Frank’s 2026 Wealth Report ranks Brisbane among the world’s hottest prestige property markets — rivaling Miami, Mumbai and Abu Dhabi.
The luxury boom in Australia's third largest city stems from its surging population, favourable planning environment, and massive infrastructure spending ahead of the 2023 Olympics, including the Cross River Rail, Brisbane Metro and Victoria Park Stadium.
Adam Ross, Head of International and Private Clients at McGrath said Brisbane has leapt to global luxury "remarkably quickly".
"There’s a real can-do attitude in the city. You can get an 80-storey tower approved in less than a year. Anywhere else in Australia, that’s simply not happening. As the city evolves, it is increasingly drawing in more high-net-worth buyers attracted to the rare combination of lifestyle, scale and value.
"These factors are resonating not just with domestic buyers, but with global capital as well.”
REA Group data backs this up. Brisbane property prices have surged 95% since 2021, yet premium properties (priced within the top 5%) remain cheaper than equivalent homes in Sydney, Melbourne and Perth.
Brenton Hebrard at Brisbane Prestige Real Estate said the city's luxury property market is stronger than ever, with build quality soaring and high-end buyers craving turnkey city apartments, quality acreage and waterfront homes.
"The past five years have brought unprecedented levels of high-end transactions. Ten to 15 years ago there were nice homes here or there, but now big money's everywhere, fueled by people moving to Brisbane alongside local wealth," he said.
Brisbane has several homes on the market that are expected to fetch around $20 million, including this grand Mediterranean-inspired estate on Aminga Street in Fig Tree Pocket. Picture: realestate.com.au
Brisbane’s luxury residential property prices rose 2.1% during 2025, while the Gold Coast also saw a 2.8% jump.
Geelong's luxury waterfront
The Knight Frank report also names Geelong’s waterfront among the world’s hottest luxury markets, set to outperform spots like Queenstown’s Dalefield, the French Alps’ St-Martin-de-Belleville, Italy’s Lake Como and LA’s Pacific Palisades.
On Corio Bay’s north-facing shores — 75 km southwest of Melbourne — this waterfront precinct lures high-net-worth buyers with its relaxed coastal vibe, walkable foreshore, water-view homes, marina, cultural and dining scene, fast links to Melbourne and airports, plus nearby Surf Coast beaches and the Bellarine Peninsula's wineries and golf courses.
The Geelong waterfront has been identified as one of the world’s hottest luxury housing markets set to outperform. Picture: realestate.com.au
Jim Cross of McGrath Geelong Newtown reports booming demand for prime waterfront apartments and townhouses over the past five years from local, interstate and international buyers — with over a dozen sales at $3m–$6m.
"The Geelong waterfront has experienced an amazing transformation, with some of the country’s finest property developers choosing to invest and develop a much more sophisticated type of apartment project, which has reshaped lifestyle living in our city," he said.
The Geelong waterfront sits on the north facing shores of Corio Bay. Picture: realestate.com.au
REA Group Senior Analyst Megan Lieu said Geelong has become increasingly popular.
"It offers both a regional lifestyle and accessibility to Melbourne’s CBD. Transport networks are fairly well established, with a direct train to the CBD, which is around a one‑hour drive away.
"Infrastructure investment and urban renewal have contributed to its surge in popularity among buyers as well."
Melbourne bucking the trend
But while most Australian luxury markets are growing less affordable, Melbourne is bucking the trend.
Today, $1.5m buys 82.6sqm of prime real estate in the city, up 4% from 79.4sqm five years ago.
John McGrath, CEO of McGrath Estate Agents, called the Victorian capital "one of the most attractive entry points into a global-tier city right now".
Melbourne bucks the global trend on buying power for luxury property. Picture: Getty
Meanwhile, Sydney continues to dominate Australia's super-prime market, boasting a record Q4 2025 for $14m+ deals. But in line with global trends, it's becoming less affordable — offering 5% less space than five years ago, the same as Brisbane (Perth and Gold Coast have become 11% and 14% less affordable respectively).
Yet Aussie cities — even Sydney — remain significantly more affordable than their global peers: $1.5m gets you 42sqm in Sydney versus 16sqm in Monaco, 23sqm in Hong Kong, 33sqm in London or 34sqm in New York.
By global luxury property standards, Sydney remains affordable compared to markets like Monaco, Hong Kong and London. Picture: Getty
By comparison, Miami has become 40% less affordable in five years, Tokyo 41% less and Dubai a staggering 66% less.
"Australia offers world-class lifestyle credentials while still trading at a meaningful discount to many of its global peers," said Mr McGrath.
Looking forward
Around the world, prime residential prices have outpaced mainstream housing, though Australia once again has defied this trend.
They fell in Sydney and Melbourne in 2025 (by 0.4% and 1.3% respectively), though saw modest rises in Perth (4.1%), Gold Coast (2.8%) and Brisbane (2.1%).
Knight Frank predicts Perth's high-end real estate to top 2026 growth at 3%, Brisbane and Gold Coast to remain stable (0%), and Sydney and Melbourne to see a 2% fall.
By 2027, it forecasts Brisbane, Gold Coast and Perth's luxury markets to grow by 2%, Melbourne to see a 1% and Sydney to be stable.
In 2027 Brisbane, the Gold Coast and Perth are expected to be the strongest performing luxury markets, with 2% forecast growth in luxury residential prices. Picture: Getty
Premium demand will be fueled by Australia's ultra-high-net-worth individuals (with a net worth of around $40m or more), who are expected to surge by nearly 60% in five years, said the report.
These buyers are less impacted by the credit constraints that define buyers with smaller budgets.
However, Ms Lieu said the upper end of the market is the first to react to economic shifts, as evidenced with this year's rate hikes and Middle East uncertainty.
"The high-end and premium market have seen weaker growth than the low and middle segment from January to March," she said.
"This has been evident in Melbourne, Adelaide, Perth and Hobart, while Sydney and Brisbane premium markets have been more resilient. [And] with more rate hikes anticipated, we could see a further deceleration in the luxe market."
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