Down Under in Demand

Scarcity, lifestyle appeal and strong international interest continue to support Australia’s premium property market, with buyers prioritising quality, convenience and long-term value

Few property markets combine lifestyle, stability and space quite like Australia. From established inner-city enclaves to prestigious coastal addresses, the country’s most desirable locations continue to attract buyers seeking long-term value, quality housing and an enviable way of life. According to Andrew Cook, Founder and Principal at Arno, limited supply and enduring demand remain key factors supporting the market’s strongest-performing sectors.

Victoria Taylor

1st September 2026

“The premium end of our local market continues to perform well, largely because of an ongoing shortage of quality stock,” says Andrew. “Homeowners in this area tend to hold their properties for long periods, resulting in very limited supply. Geographically, the area is also tightly constrained, with strict planning and heritage controls limiting new development. That combination of scarcity and strong demand continues to support values at the top end of the market.”

While conditions vary between cities and regions, Andrew notes that Australia’s strongest-performing locations continue to share a number of characteristics. “Across Australia’s major cities, the strongest-performing markets are typically those located closest to the Central Business District (CBD),” he explains. “Buyers continue to prioritise locations with excellent transport links, access to high-quality schools, strong employment hubs, vibrant lifestyle amenities and limited land supply. These fundamentals consistently underpin long-term demand and price growth.”

Changing lifestyles are also reshaping buyer preferences. Rather than seeking ever-larger homes, many purchasers are prioritising convenience and flexibility. “Today’s buyers are increasingly seeking lifestyle and flexibility over land size,” says Andrew. “Many are moving away from large properties that require significant maintenance and instead favour homes that offer a ‘lock-up-and-leave’ lifestyle. This allows them greater freedom to travel and enjoy other lifestyle pursuits without the ongoing demands of property upkeep.”

Unlike many markets where borrowing costs have significantly influenced activity, Australia’s premium sector has remained relatively insulated. “In our market, interest rates and lending conditions have had relatively little impact on buyer behaviour,” says Andrew. “The majority of purchasers are high-net-worth individuals who typically buy with cash rather than relying on finance. As a result, their purchasing decisions are driven more by lifestyle, location and the availability of quality properties than by borrowing costs.”

Pacific Prestige

Byron Bay Sotheby’s International Realty

Australia’s appeal extends well beyond its domestic audience. International buyers continue to be drawn to the country’s combination of value, quality and lifestyle. “Australia, and Melbourne in particular, remains highly attractive to international buyers,” says Andrew. “Compared with global cities such as London, Paris, New York and Hong Kong, Australian premium property often represents excellent value. Buyers are frequently surprised not only by the comparative affordability but also by the high standard of construction, generous living spaces and overall quality of housing available.

Across Australia’s major cities, the strongest-performing markets are typically those located closest to the Central Business District (CBD).

Looking ahead, Andrew expects confidence to strengthen over the coming year, particularly in Victoria. “Over the next 12 months, I expect confidence to strengthen, particularly in Melbourne, Victoria. If there is a change of government at the state election, it is likely to improve business and consumer confidence, which could translate into increased buyer activity and stronger demand.”

Despite economic and political influences, Andrew believes the fundamentals supporting Australia’s property market remain firmly in place. “More broadly, supply constraints, population growth and confidence will remain the key drivers of prices across many Australian markets.”

For investors and homebuyers alike, Australia’s blend of limited supply, strong lifestyle appeal
and established market fundamentals continues to support its position as one of the world’s most desirable and enduring residential property destinations.

Timeless Address

Capella Hotel Group and Verso Projects have announced Capella Residences Brisbane, an exclusive riverfront development set to open in 2029. Marking Brisbane’s first branded residences, the project will transform the historic Shafston House estate into a refined collection of luxury homes that combine heritage architecture with contemporary design.

Located at Kangaroo Point on the banks of the Brisbane River, the landmark estate has been a defining part of the city’s history for more than 170 years. The restoration will preserve its architectural character while introducing thoughtfully designed residences enhanced by Capella’s renowned hospitality and personalised service. Residents will enjoy an impressive collection of amenities, including the signature Capella Living Room, designed as a welcoming social space for relaxation, cultural experiences and everyday living. Landscaped gardens, six swimming pools, a private marina and dedicated wellness and leisure facilities will create a peaceful riverside setting. Two exclusive River Homes, private basement parking and elegant arrival spaces complete a development that promises to set a new benchmark for luxury residential living in Queensland.

Capella Residences Brisbane | www.capellahotelgroup.com

Legacy Living

Originally built in the late nineteenth century, The Arnaud is a remarkable residential development that celebrates the craftsmanship and architectural elegance of a bygone era. Carefully restored and reimagined, the landmark building preserves its rich Art Nouveau heritage while introducing the comforts and sophistication expected of contemporary luxury living.

Located at 101 Park Street, the development has been brought to life by Arno Corporation, with architectural expertise from Powell and Glenn. Generous proportions, impressive ceiling heights and beautifully restored period features reflect the quality of its original construction, while thoughtfully designed residences provide an elegant setting for modern life.

Surrounded by established greenery, The Arnaud offers a rare combination of history, privacy and refined design in one of the city’s most distinguished addresses. Every detail has been considered to honour the building’s heritage while creating homes that feel timeless rather than nostalgic. Blending architectural significance with contemporary luxury, The Arnaud presents an exceptional opportunity to own a residence that is as distinctive today as it was more than a century ago.

The Arnaud
www.arno.com.au

Pacific Panorama

Perched above the dramatic coastline of Whale Beach, Lodge Dauphin is an extraordinary oceanfront estate offering uninterrupted views across the Pacific Ocean, Whale Beach and the Central Coast. Occupying approximately 2,150m2 in one of Australia’s most sought-after coastal locations, the residence combines exceptional architecture with complete privacy, all within an hour of Sydney’s central business district.

With a price guide of AUS $26m, the home features expansive open plan living spaces, beautifully appointed interiors and a relaxed resort atmosphere. Landscaped gardens and generous outdoor entertaining areas create a seamless connection between the home and its spectacular surroundings, while floor to ceiling glazing captures breathtaking coastal views throughout.

The estate also offers an impressive collection of leisure amenities, including a private golf course, heated infinity swimming pool, spa and sauna, creating a lifestyle usually reserved for the world’s finest resorts. Combining architectural excellence with an unrivalled clifftop position, Lodge Dauphin represents one of Australia’s most exceptional luxury coastal properties, offering an extraordinary sense of privacy, tranquillity and connection to the surrounding landscape, in a truly breathtaking and private natural setting.