The Sydney luxury home market continues to be one of the best-performing in the entire country.
According to Ray White, on a national level, luxury property has been outpacing median-priced homes.
Over the last decade, nationally luxury house prices outpaced median prices at 84 per cent compared to 70 per cent, and luxury unit prices also rose more than median prices at 58 per cent versus 31 per cent.
In 2023, Sydney luxury home prices hit $3.9 million, 93.3 per cent higher than they were in 2014.
During the same period, median prices grew by only 71.6 per cent, creating the largest price growth gap among major cities.
With a median price of $1.4 million, Sydney also has the largest luxury to median house price ratio among major cities.
Interestingly, the trends in the housing market were only magnified in the unit market.
Here, Sydney showed an even larger difference not only in price growth but also in absolute prices.
In 2023, luxury unit prices were recorded at $2.1 million (72.2 per cent higher) while median unit prices were recorded at only $794,000 (25.4 per cent higher).
Zooming into 2023, this was the first year that Sydney’s median house prices grew greater than luxury house prices.
Luxury house prices increased by 5.9 per cent from 2022, while median prices increased by 6.7 per cent.
No trend changes were seen in the unit market prices, with luxury unit price growth at 5.4 per cent and median unit price growth at only 4.2 per cent.
Not surprisingly, Mosman is Sydney’s top suburb for luxury houses, with a significant gap from the runner-up suburb, Vaucluse.
Distribution of luxury unit sales, on the other hand, is more evenly spread out.
However, Mosman still comes out on top, followed by Darling Point. Despite such a dramatic increase in prices, Sydney is selling seven times more luxury houses and units now than it was 10 years ago.
In 2023, Sydney sold 1,782 luxury houses and 683 luxury units. Although this is very high, relative to the past 10 years, luxury house transactions still dropped by four per cent from 2022, while luxury unit transactions dropped by two per cent.
The shape of the trend is similar to that seen in national sales volume, but the drop between 2022 and 2023 was not as steep.
