Melbourne’s luxury property market has demonstrated renewed confidence throughout 2025, defying broader economic uncertainty as scarcity, global capital  and intergenerational wealth continue to reshape the city’s most exclusive  residential markets.

The findings, published in the December 2025 edition of Kay & Burton’s Luxury & Lifestyle magazine, reveal sustained strength at the top end of the market,  particularly for homes valued above $10 million, with demand concentrated around  turnkey properties, blue-chip locations and large-scale estates offering long-term  lifestyle and legacy appeal.

Kay & Burton Managing Director Ross Savas, told LUXURY LIST, buyers are acting with increasing conviction.

“The luxury market in Melbourne continues to perform exceptionally well,” Mr Savas says. “We’re seeing a clear shift toward larger, amalgamated estates that reflects a  growing appetite for scale, privacy and longevity. Buyers are thinking  generationally—not just about today’s lifestyle, but about legacy.”

The report highlights extraordinary results across Melbourne’s most tightly held suburbs, including landmark transactions in 2025 in Toorak, Brighton and Malvern  East, reflecting deep demand for quality homes that combine architectural integrity,  amenity and scale.

National data reinforces this momentum. Cotality figures show sales of $5 million plus homes have more than doubled nationally since 2020, with Melbourne  recording a 13.5 per cent increase in annual transactions.

Australia’s total residential real estate value has now reached a record $12 trillion, more than double its size a decade ago, signalling the continued depth and  resilience of the market.

“Luxury property is about preservation of capital as much as enjoyment of life,” Mr Savas says. “With limited supply and growing global demand, Melbourne is  exceptionally well-placed heading into 2026.” 

International buyers drive competition for trophy homes:

The December edition of Luxury & Lifestyle also highlights the resurgence of  international buyers throughout 2025, particularly within Melbourne’s trophy-home  segment.

Jamie Mi, Director and Head of International at Kay & Burton, said offshore demand has returned swiftly and decisively, driven by high-net-worth buyers from the United  States, Europe and Singapore.

“We’ve seen a wave of confidence from international purchasers throughout 2025,”  Ms Mi says. “The pace quickened markedly through winter and spring—whenever  premium stock became available, it was immediately pursued. Everyone is watching the top end closely.”

International clients are most active in the $10 million to $25 million price bracket, favouring turnkey homes in suburbs including Toorak, Brighton, Canterbury, Kew,  Hawthorn and Hawthorn East. Currency advantages have further enhanced buying power, particularly for US and Singaporean dollar buyers.

“In 2026, premium turnkey homes in top suburbs will continue to attract international attention, and the city’s standing as a global luxury destination will only  strengthen,” Ms Mi says. 

Scarcity underpins confidence across Melbourne’s prestige regions:

Across Stonnington, Boroondara, Bayside and the Mornington Peninsula, the report identifies scarcity as the defining force supporting confidence.

From once-in-a-generation landholdings in Toorak, to record-setting family home  sales in Malvern East, to renewed momentum across Bayside and the Peninsula,  buyers are prioritising certainty, quality and lifestyle over speculative timing.

Turnkey and recently renovated homes are commanding strong competition, as buyers seek immediate liveability amid renovation delays and rising construction  costs. In parallel, Melbourne’s prestige rental market has remained resilient, with  limited supply driving record long-term leasing outcomes and attracting discerning  renters seeking flexibility without compromise.

Outlook: confidence, capital and longevity:

Looking ahead, the Luxury & Lifestyle Market Report forecasts measured but sustained growth through 2026, supported by intergenerational wealth transfer,  returning expatriates and global private capital allocations.

“While rate cuts didn’t arrive as quickly or as often as many expected, buyers still feel supported and confident,” Mr Savas says. “There’s a strong sense of stability  returning and with that comes confidence to make significant acquisitions.”

The December 2025 edition of the Luxury & Lifestyle magazine, including the full Market Report, is available now at any Kay & Burton office or open for inspection.  Click here > For list and location of Kay & Burton offices. 

The digital version of the Luxury & Lifestyle can be viewed here.