Australia’s luxury real estate market has maintained its stability and renewed momentum at the beginning of 2026, although its annual growth remains slightly below the national average of 9.4%. The segment continues to stand out due to the scarcity of available properties and the depth of demand, particularly for homes valued at more than $5 million.
In Melbourne, Mitch Armstrong notes that the luxury market continues to preserve its value thanks to the quality of developments and the limited supply of land. Younger buyers, whose wealth is often linked to the technology sector, are increasingly entering the high-end market, alongside continued demand from international buyers and expatriates.
Demand remains a key factor in determining prices, as buyers tend to favor high-quality, move-in-ready properties that offer secure parking and advanced safety features. Renovation projects are generally less attractive due to the risks associated with cost and time.
Meanwhile, suburbs such as Toorak, Armadale, and Malvern continue to support market values, driven by land scarcity and the presence of prestigious educational institutions.
