Luxury Property Market Update – A year of transition ahead


The luxury end of our property markets, especially in Sydney and Melbourne, led to the property boom of 2020 -21.

But now this segment of the market is transitioning into the next phase of the property cycle creating opportunities for those looking to upgrade and enter the market according to Mark Browning, Head of Property Services Group at NAB.

Luxury Property

In a recent report to private NAB clients, Browning explained that:

“The start of the interest rate tightening cycle, with the recent reopening of international borders, sees the luxury property market enter a transition phase ahead.

Unlike the premium and broader markets which are historically more sensitive to interest rate increases, the luxury market is renowned for a different set of drivers including share market performance and outlook, business executive bonuses and international interest/diversification.

Was a golden year for a luxury property with 2022 seeing continued healthy demand, despite a softening in activity and value gains compared to 2021.”

Further, he commented:

“Despite the easing of dwelling values in both the premium and luxury segments of the market in 2022 (top 25% and top 2% respectively), the luxury market continues to provide the stronger annual value gains over the past 12 months.

Across the 5 major combined capital city markets, dwelling values now sit +19.8% up over the last year in the luxury/prestige segment of the market, while the premium price bracket has realised a lower, yet still strong +14.8% value rise since the end of April 2021.”

Luxury Market


Source: CoreLogic / NAB

Mr Browning further explained:

“Whist the softening in value gains has been a result in overall buyer confidence easing, more broadly in Sydney & Melbourne, the return of international migration, particularly from Asia, has seen early signs of increased activity to date in 2022.

This factor is expected to continue to shield the smaller luxury end of the market, with this market segment likely to see a hibernation, with vendors choosing to hold properties rather than sell.”

The NAB report looked into the luxury housing markets in the eastern states…


In excess of 50 sales have transacted over the past 15 months in excess of $10,000,000 in Toorak, Melbourne’s most affluent and expensive suburb.

Almost 20 of these have achieved a sale price above the $20,000,000 mark.

Along with the remainder of the market, the luxury end of the market has seen buyer demand moderate, however, sales across the more affluent suburbs have still been recorded in the opening months of 2022.


The highest sale of 2022 has been confirmed, with the property at 802 Orrong Road, Toorak, a contemporary mansion, changing hands for $38.5M in late February, in an off-market transaction.

Close by, at 28 Grange Road, Toorak, an opulent home was sold for $22.25M in late January 2022, taking second place on the list of highest sale prices this calendar year.

In other prestigious suburbs of Melbourne, strong sales results at the upper end of the market have also been reported.

Kew has seen the suburb record broken, with reports of ‘La Verna’ at 39 Sackville Road being sold for more than $20M in April, with a range of other sales being made in the $15M-20M price bracket within this tightly held suburb.

Spreading further, the Mornington Peninsula benefits from an extended summer selling period, with many sales reported above $5M already in 2022.

Headlines however have surrounded lifestyle properties within the affluent hinterland suburbs of Red Hill, Flinders and Main Ridge.


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