In 2025, Sydney’s prestige property is undergoing a quiet transformation.
Today’s top-end are both younger and older and, more often than not, they’re demanding a lock-up-and-leave style of luxury rather than a backyard mooring for the yacht.
This means the definition of Sydney prestige property is no longer confined to the traditional harbourside trophy home. Instead, the top of Sydney’s market is now just as likely to include Potts Point and CBD apartments, as well as eastern beaches homes with a view.
So with demand evolving, new neighbourhoods rising, new buyer segments emerging, and prestige listings becoming scarcer than ever, here’s what you need to know about Sydney’s prestige market in 2025.
1. Prestige Is no longer a postcode
Sydney’s eastern suburbs remain Australia’s number one prestige market by a considerable distance. Of Australia’s 12 most expensive suburbs, no fewer than eight are located here. However, what counts as a prestige suburb in Sydney’s east has been expanding fast.
Where once the prestige map was largely confined to harbourside suburbs like Point Piper, Vaculuse, Bellevue Hill and Darling Point, today you’ll find equally high prices and demand across the broader east, including the eastern beaches.
Suburbs like Bronte, Coogee, Clovelly and North Bondi now regularly record sales of over $10m, and often that’s for property on a far smaller land size than you’d get in the traditional prestige enclaves.
Meanwhile, Potts Point and the CBD fringe, including Paddington, Surrey Hills and Darlinghurst, are also emerging as apartment-based prestige hubs, as more buyers prioritise walkability, culture and design over traditional prestige living.
2. New buyers reshaping the market
In line with this trend we’re seeing new types of buyers dominate the prestige market. While offshore investors may get a lot of press, it’s actually local and expat buyers who we’re noticing are reshaping the prestige landscape.
Over the past couple of years, there’s been a marked rise in Millennial (Gen Y) prestige buyers. We’ve noticed these are often cashed-up tech founders, finance professionals, business owners or returning ex-pat Australians who want a lifestyle with investment upside.
They’re usually savvy, strategic and willing to pay a premium for well-positioned property – and increasingly, they’re competing with their parents’ generation for homes.
That’s because at the same time, we’re seeing downsizers look to leave the family home in the eastern suburbs for prestige apartment living. These are not retirees retreating quietly. They’re active lifestyle buyers looking for turnkey luxury in walkable, culturally rich suburbs like Potts Point, Elizabeth Bay and Double Bay.
3. Scarcity is the new battleground
For all the talk of buyer interest, however, the real issue in 2025 is supply.
According to the 2025 Westpac Prestige Property Report, Sydney recorded just 3,295 sales over $5 million in 2024 – up slightly from 2023 but still well down on the 4,443 peak in 2021.
That’s despite population growth, strong prestige demand and more buyers looking in the prestige market.
This mismatch is fuelling competition and driving up prices in many market segments – especially in the inner city prestige apartment market. For instance, relaestate.com.au data shows that the median three-bedroom apartment value in Potts Point is now $2,295,000. Meanwhile, Domain reveals that the value of two-bedroom apartments in Potts Point has lifted 12.4% over the past 12 months.
At the same time, many traditional prestige homes simply aren’t turning over, either because owners are holding long-term or because there’s nowhere else for them to go.
4. Prestige is being built, not just sold
Perhaps due to the lack of quality prestige stock for sale, we’re increasingly seeing developers focus on boutique developments specifically aimed at top-end buyers.
One example is Billyard Ave in Elizabeth Bay, which has set new sales records. Another includes Muse Potts Point, a 13-residence project designed by WMK Architecture, with interiors by Mathieson that features expansive terraces, city and harbour views and a rooftop pool.
Another is Regency House by Fortis which will deliver 20 two- to four-bedroom residences with oversized layouts, harbour views and premium amenities.
Both reflect a broader trend: design-led, high-end apartments catering to those who want the best of Sydney living, with none of the maintenance.
But it’s not just prestige apartments getting built. A lot of prestige buyers are looking to secure a great block of land with a modest residence and then opting to knockdown and rebuild.
It’s one of the few ones they’re able to get hold of prestige property in the city when so little stock is for sale.
What this means for prestige buyers and sellers in 2025
In 2025, the prestige market is changing with a lack of stock, new buyer groups and even new prestige suburbs taking hold.
To get hold of the perfect Sydney property, buyers often need to be creative – whether that means being open to a knockdown/rebuild, amalgamating existing properties or buying off the plan.
Meanwhile, sellers are in a strong position if they get the strategy right. Scarcity gives well-positioned homes real pricing power, but prestige buyers are savvy. Properties that are overpriced, underprepared or poorly marketed still risk sitting idle.
Want more?
If you’re thinking of buying or selling in 2025 or 2026, contact my team today.
