Move over Seoul and Dubai: Perth offers luxury homes at global bargain prices
Perth has recorded the highest luxury residential price growth of Australian capital cities for the second year running, according to a new report.
Knight Frank’s The Wealth Report 2025 found WA’s capital saw growth of 5.3 per cent in prime residential property prices over 2024, after the growth rate of 5.2 per cent over 2023.
Perth recorded luxury property price growth above the global average, with report finding there was a global increase of 3.6 per cent in prime residential prices last year, continuing an upward trajectory.
Within Australia, Brisbane (4.1 per cent) and the Gold Coast (3.6 per cent) also recorded luxury property price growth over 2024 that was equal to or above the global average.
Of the 100 global markets tracked in Knight Frank’s Prime International Residential Index, 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 per cent), Manila (17.9 per cent) and Dubai (16.9 per cent) leading the list. Saudi Arabian markets performed strongly, with Riyadh and Jeddah both making the top six.
Meanwhile, some bigger global cities failed to gain traction since the pandemic including New York (-0.3 per cent), London (-1 per cent) and Hong Kong (-2.2 per cent).
Knight Frank Global Head of Research Liam Bailey said Perth’s luxury residential property market offered more bang for buck than other global cities, with $US1 million ($1.58 million) buying 102 square metres of prime residential property, significantly more than Sydney (45 square metres) Singapore (32 square metres), Hong Kong (22 square metres) and Monaco, where you can only buy 19 square metres of luxury real estate for US$1 million.
Bailey said with demand for luxury property outweighing supply, Perth was expected to again have the highest luxury property price growth of the Australian cities over 2025, albeit more moderate at an estimated 3 per cent.
He said the Perth’s luxury and wider property market was underlined by the strong economic conditions in WA as illustrated by the latest CommSec State of the States report, driven by the resources sector and associated population growth.
Mack Hall, principal of Mack Hall Real Estate, said there were signs Perth’s luxury real estate market had already started to moderate for 2025.
He said Perth had had several sales of around $15 million and above over the past 18 months. He had sold 33 View Street Peppermint Grove, a six-by-four on 2476 square metres, for $14.5 million in August and another property for $20 million.
Hall said so far this year activity had been subdued, with supply in the luxury market 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,” he said.
“There are still buyers ... 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.”
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