Young entrepreneurs and foreign buyers drive luxury property market amid limited listings
Australia’s high-end residential property market is experiencing a significant imbalance, with demand for homes priced above $10 million far exceeding available listings.
Industry experts note a shift in buyer demographics, with younger entrepreneurs from sectors such as technology, retail, and e-commerce now joining the ranks of traditional wealthy purchasers.
Recent high-profile transactions, listed in a Domain article, highlight this trend. In June, Yan Zhang, a millennial originally from China, set a new national record by purchasing a penthouse at One Sydney Harbour for $141.55 million in cash. According to Knight Frank’s latest Wealth Report, luxury property remains the top investment choice for affluent individuals aged 18 to 35 worldwide, reflecting a continued preference for tangible assets.
Notable buyers include Georgia and Daniel Contos, founders of White Fox Boutique, who have acquired five mansions in Sydney’s Vaucluse valued at $150 million. In Melbourne, Matthew and Nicole Verrocchi, linked to the Chemist Warehouse business, have quietly assembled six neighbouring properties in Toorak for $22.83 million, with plans for new development.
Government data shows that from January to September last year, there were 3,750 foreign residential real estate approvals in Australia. China accounted for the largest share, with $400 million in approvals, followed by Taiwan, Hong Kong, Vietnam, and Indonesia, each at $100 million. Temporary visa holders and foreign-owned companies are currently barred from purchasing existing homes until 2027, though off-the-plan purchases remain permitted. However, industry sources report limited interest in such properties due to rising construction costs and delays.
Australian expatriates returning from overseas have also become more active in the luxury market. “In the last 12 months, we’ve seen a spike in expat inquiry, and I would estimate that it’s up by as much as 50%,” said Angus Moore, senior economist at PropTrack. “The currency play is another aspect that’s driving international inquiry, because they get far more bang for their buck here.”
Buyers’ agents are adapting to the needs of international clients, offering comprehensive tours of Sydney’s premium suburbs and highlighting lifestyle benefits such as proximity to beaches and prestigious schools. Sydney’s waterfront homes are compared to exclusive properties in London and New York, with demand consistently outstripping supply.
“There are always so many more buyers than what is available,” Moore said. “Our harbour is one of the most beautiful in the world. That view – you don’t have to be real estate savvy to know that’s prestigious real estate.”
Privacy and access to leading schools remain important factors for buyers, particularly those relocating from high-density cities. In Melbourne, newly built homes designed for entertaining and family living are attracting significant interest from high-net-worth individuals.
Brisbane’s luxury market has also strengthened, with properties in suburbs such as Ascot and Hamilton achieving record prices. Some homes have seen substantial value increases without any renovations between sales, reflecting strong demand. Nonetheless, agents suggest that the true value of certain properties may never be realised, as they are unlikely to be offered for sale.
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