_Perth records the highest price growth for luxury residential property of the Australian capitals

• 2024 was the second year Perth recorded the highest growth for Australia, with a growth rate of 5.2% in 2023
• The report found US$1m will buy 102sq m of prime residential property in Perth, significantly more than Sydney (45sq m) and Melbourne (87sq m), but less than Brisbane (114sq m) and the Gold Coast (119sq m)
• In Perth the number of square metres of luxury real estate you can buy for US$1m has actually increased by 9% over the past decade, due to changes in the exchange rate, while in every other Australian city analysed it has fallen
• Perth is expected to again have the highest luxury property price growth of the Australian cities over 2025, but it is predicted to be a more moderate 3%

Perth has recorded the highest luxury residential price growth of the Australian capital cities for the second year in a row, according to Knight Frank’s The Wealth Report 2025, released today.

Knight Frank’s flagship report found that Western Australia’s capital saw growth of 5.3% in prime residential property prices over 2024, almost on par with its growth rate of 5.2% over 2023.

The city recorded luxury property price growth above the global average, with The Wealth Report 2025 finding there was a global increase of 3.6% in prime residential prices last year as they continued on an upward trajectory, marginally up on the 3.3% rise in 2023.

Within Australia, Brisbane (4.1%) and the Gold Coast (3.6%) also recorded luxury property price growth equal to or above the global average over 2024.

Of the 100 global markets tracked in Knight Frank’s Prime International Residential Index (PIRI), 77 recorded positive annual price growth, three were at a standstill and 20 saw prices fall, including Melbourne.

Asian and Middle Eastern markets dominate the first six spots in the ranking with Seoul (18.4%), Manilla (17.9%) and Dubai (16.9%) leading the list. (see page 82 of The Wealth Report for the full global list).

Knight Frank’s The Wealth Report 2025 found in Perth’s luxury residential property market, US$1m (circa AU$1.61m at the time of calculation) will buy 102sq m of prime residential property, significantly more than Sydney (45sq m) and Melbourne (87sq m), but less than Brisbane (114sq m) and the Gold Coast (119sq m).

Perth also offers significantly more bang for your buck than other global cities, including Monaco, where you can only buy 19sq m of luxury real estate for US$1m, Hong Kong (22sq m) and Singapore (32sq m).

The Wealth Report 2025 found that in Perth the number of square metres of luxury real estate you can buy for US$1m has actually increased by 9% over the past decade, due to changes in the exchange rate, while in every other Australian city analysed it has fallen.

Knight Frank Global Head of Research Liam Bailey said price growth in Australia’s luxury property markets was expected to moderate over 2025.

“Perth is expected to again have the highest luxury property price growth of the Australian cities over 2025, but it is predicted to be 3%, down from last year’s 5.3%,” he said.

“This will be followed by Brisbane and the Gold Coast with 2% and Sydney at just 1%. Melbourne luxury property prices are expected to remain flat.

“Perth’s luxury property market – and indeed the whole property market - is underlined by the strong economic conditions in Western Australia, which is driven off the back of the massive resources sector, and associated population growth.

“The latest CommSec State of the State report found Western Australia was Australia’s best performing economy for the second quarter in a row, being ranked first on five of the eight economic indicators, including population growth.

“Demand for luxury property has outweighed supply in Perth, which will continue to push prices up.”

Mack Hall, Principal of Mack Hall Real Estate, Knight Frank’s partner in Western Australia, said Perth’s luxury real estate market had been very strong last year but there were signs it had already started to moderate this year.

“As was the case with the mainstream property market, the past 18 months was fantastic for property in Perth at the top end, with several sales of around $15 million and above,” he said.

“For example, I sold 33 View Street, a six-bedroom, four-bathroom house on 2,476sq m of land in Peppermint Grove for $14.5 million in August last year and another property for $20 million.

“This year, however, we have seen a little less activity to date.

“Supply in the luxury market in Perth is more limited than Sydney. Construction and the delivery of projects is also posing more challenges, and in 2025 we have seen less stock in the top end of the market available for sale.

“There are still buyers in the market looking for opportunities, but the upcoming Federal Election is impacting sentiment, with many top-end buyers waiting to see what the outcome will be before acting.

“If you can find the right luxury property, 2025 could be a good time to buy as the market cools.” 

See full report: here