Key takeaways
Australia’s prestige market has split into two. Brisbane and Adelaide are running hot, while Sydney and Melbourne have cooled to a balanced state.
Lifestyle-driven capitals are outperforming. Population shifts and value-seeking high-net-worth buyers are pushing Brisbane and Adelaide ahead.
Sydney and Melbourne are pausing, not falling. Economic uncertainty and tax pressures are slowing activity, but quality assets remain resilient.
Scarcity continues to drive strength nationwide. High-end, well-located prestige homes remain in limited supply, supporting premium prices.
Prestige sentiment is a leading economic indicator. The HTW Prestige Index reveals confidence returning unevenly — offering early clues to the next market cycle.
If you’ve been watching Australia’s prestige property market and feeling like the signals are a little " mixed", you’re not imagining it.
The top end of town is shifting in ways we haven’t seen for years, and the latest Herron Todd White Prestige Property Monitor confirms it.
What’s emerging is a clear two-speed market: some capitals are powering ahead with remarkable strength, while others are pausing to catch their breath.
Savvy investors see this divide as an opportunity, because when prestige markets move, they often tell us where economic confidence is headed long before the broader market catches on.
As HTW’s Managing Director, Residential, Drew Hendrey, puts it:
“We are seeing a two-speed market at the top end across the big cities… cities like Brisbane and Adelaide are experiencing a surge in confidence, while Sydney and Melbourne are taking a breather under the weight of economic uncertainty and affordability pressures.”
HTW’s newly launched Prestige Index gives us a sentiment score across major capitals, and the inaugural 2026 reading sits at 6.6/10, a solid “Warm” market overall.
But averages can be deceiving. Behind that modest national score lies a stark divergence in momentum, confidence, and buyer behaviour across Australia’s top-end markets.
The numbers reveal the real story:
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Brisbane: 8/10 — Hot
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Adelaide: 8/10 — Hot
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Perth: 7/10 — Warm
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Sydney: 5/10 — Balanced
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Melbourne: 5/10 — Balanced
This is precisely why monitoring prestige markets matters: scarcity, sentiment, and lifestyle drivers shape this segment differently from the mainstream market.
As the report highlights, these markets “respond to a different set of drivers,” including business confidence, international trade flows, and the sheer scarcity of high-end stock.
Sydney
According to the report it’s been a relatively quiet start to 2026 for the Sydney prestige market, even by January standards.
The number of listings with an asking price of $15 million or more is down compared to the previous two years, and only one sale above this mark was recorded in January.
Drew Hendrey said that they expect a subdued first half of 2026 for the prestige market, as high inflation and rising interest rates are pressuring prices, particularly in the $5to $10 million segment.
High-quality properties will still perform well, although he expects another year of more limited high-end trophy home sales above $50 million.
Melbourne
The data shows that Melbourne’s prestige residential market is tracking in line with broader market conditions, with modest growth evident across key inner and outer prestige suburbs.
Henry explained that move-in ready, turnkey properties continue to command premium pricing in this segment, capitalising on buyer preferences for low-maintenance, quality-finished homes.
However, ongoing pessimism about state property taxes and land tax obligations remains a headwind, tempering sentiment and transaction volumes at the upper end of the market.
Brisbane
There have been limited sales in the prestige space in Brisbane over the last year, according to the report.
Even so, agents are reporting strong buyer interest and that there was little drop-off in enquiries over the Christmas/New Year period.
- Also read:National Weekly Auction Report – February 21st 2026 | Auction Markets Steady Again Despite Listings Surge and Higher Rates
- Also read:Adelaide housing market update | February 2026
- Also read:Perth housing market update | February 2026
- Also read:Brisbane housing market update | February 2026
- Also read:Home Loans Surge… But the RBA Just Hit the Brakes | Property Insiders
There is still very strong demand, particularly for high-quality, architecturally designed, modern homes in well-located city fringe suburbs, according to Henry.
Adelaide
According to the report, with a relatively short period of time having elapsed in the New Year, the prestige residential property market in South Australia is expected to continue as it left 2025, buoyed by both local and interstate buyers who see value relative to other major Australian capital cities.
Henry noted that appropriately priced, well-presented properties are likely to continue to garner the greatest demand.
With several property listings above $5 million to bring in the New Year, a clearer picture of the 2026 prestige residential property market will emerge in the near future.
Perth
Firming conditions are being experienced across most of the inner city, riverside, and coastal suburbs in the mid to top end of Perth, according to the report.
During early and mid-2025, these markets showed signs of softening amid global economic conditions, including trade tariffs, geopolitical tensions, and conflicts.
However, as some of this uncertainty subsided, the market picked up toward the end of the year, with momentum continuing into 2026.
There is a high level of demand in this space, whilst it also experiences a chronic under-supply, resulting in premium prices for high-quality prestige products in the most desira-ble suburbs of Perth.
What this prestige divide means for investors
For strategic investors, this report highlights a couple of trends:
1. Lifestyle-driven markets are outperforming
Brisbane and Adelaide are benefiting from population shifts and value recalibration.
Wealthy buyers are no longer anchored to Sydney and Melbourne.
2. Sydney and Melbourne aren’t weak; they’re resetting
Both remain global cities with long-term prestige appeal.
The current “Balanced” sentiment simply means opportunity for buyers who understand timing.
3. Scarcity remains the ultimate driver
Across all prestige markets, whether it's Toorak, Mosman, Mount Pleasant or East Brisbane, limited supply amplifies resilience.
4. Prestige leads the broader market
When confidence returns at the top end, it often trickles down.
The current divide foreshadows how different markets may perform over the next cycle.
Final thoughts
Australia's prestige market has always been a window into economic confidence and behavioural shifts among high-net-worth buyers.
As Drew Hendrey emphasises:
“The prestige market operates on a different set of drivers… the HTW Prestige Index provides unique and timely insight into the health of this important sector.”
It will be interesting to keep track of updates to this report, as when you understand how the top end moves, you’ll always be several steps ahead of the broader market.
