Australia’s Prestige Property Market: A Phenomenal Year of Record Sales
Australia’s prestige property market has closed the 2024/25 financial year with a resounding bang, setting new benchmarks in the ultra-prestige category and showcasing continued strength across Melbourne’s most exclusive suburbs. According to the September 2025 edition of Kay & Burton’s Luxury & Lifestyle magazine, the activity in the market for homes priced at $10 million and above has reached unprecedented levels, capturing the attention of both domestic and international buyers alike.
Record Transactions and Market Leadership
Kay & Burton has positioned itself as a key player in this thriving market, securing multiple transactions that exceeded $50 million this year. Highlighting the agency’s prowess is a notable sale in Toorak, which has caused waves across the nation and a record-setting beachfront transaction in Brighton that showcases the appeal of waterfront properties.
According to data from Cotality (formerly CoreLogic), national sales of homes priced above $5 million have grown by 5.2 per cent year-on-year, significantly outpacing the volume recorded just five years ago. Kay & Burton’s leadership is undeniable, handling an impressive 46 per cent of all sales over $10 million for the year ending in June—almost double that of its nearest competitor.
Dominance Across Key Suburbs
The agency’s domination is particularly evident in Melbourne’s Bayside, Boroondara, and Stonnington areas. In Bayside, for instance, Kay & Burton achieved a remarkable feat, capturing 60 percent of the region’s $10 million-plus sales, including the landmark sale of 16 Moule Avenue, which reset the suburb’s price record. Over in Boroondara, the agency accounted for half of all ultra-prestige transactions, and in Stonnington, its share reached 40 percent.
The performance underscores a critical trends: while the market has remained resilient and robust, scarcity of high-end properties is driving values to soaring heights.
The Impact of International Demand
Another significant factor contributing to the market’s vitality is the resurgence of international interest in Melbourne property. With the Australian dollar hovering below US$0.65 for much of 2025, overseas buyers are starting to see Australia as a destination offering substantial value for high-end properties.
Jamie Mi, Partner and Head of International at Kay & Burton, has observed a remarkable increase in enquires since the beginning of the year. She notes, “The period from June 2024 to January 2025 was sluggish, but post-January, the market has experienced a noticeable uptick in both transaction numbers and deal values,” indicating that international investment is once again flowing into the market.
Buyer Profile and Motivations
The dynamics of the prestige property buyer demographic appear to be shifting as well. The rising profile now includes next-generation entrepreneurs, technology founders, returning expatriates, and established families looking to secure intergenerational wealth. In a world marked by unpredictability, premium properties offer both intrinsic value and opportunities for secure living.
Ross Savas, Managing Director of Kay & Burton, explains this shift: “Luxury real estate is a finite asset class. Once acquired, these homes often stay within the same ownership for decades. This level of scarcity is pushing values to unprecedented heights, complemented by a global trend of wealth accumulation.”
The Future Outlook
Looking forward, both Kay & Burton and market analysts are optimistic. Expectations are set high for the coming year, with predictions pointing toward continued strength in the ultra-prestige sector. Properties that offer unique architectural designs, unparalleled privacy, and prime locations are anticipated to command premium prices. Mr. Savas concludes, “The next 12 months could be even stronger than the last, driven by global demand and the limited nature of prestigious assets.”
For those interested in delving deeper into this thriving market, the September 2025 edition of Luxury & Lifestyle magazine is available for perusal at any Kay & Burton office, or can be accessed online through their digital platform.