Perth’s prestige suburbs are proving remarkably resilient, even as the top end of the market cools in Sydney and Melbourne.
The HTW Prestige Property Monitor – which rates prestige markets out of 100, from “stagnant” at the bottom to “frenzied” at the top – scored Perth at 80 in June 2026. This puts the city at the top of the “warm” band and the highest reading of any capital city. By comparison, Sydney and Melbourne both slipped to 40, anchoring the bottom of the “balanced” band.
What’s driving Perth’s prestige market
Significant transaction activity continues across Perth’s top end, with six homes going under offer in June in the $8 million to $13 million range across City Beach, Swanbourne, Cottesloe, Peppermint Grove and Mosman Park. This momentum is underpinned by a strong state economy, sustained population inflows and a prestige market where stock has simply not kept pace with demand.
Off-market activity remains a feature too. Cottesloe alone recorded another off-market sale at $11 million for a substantial dwelling on a significant landholding, alongside a block value purchase of $5.3 million, an uplift of 28% in just 25 months.
Beyond the transaction activity, population growth continues to add pressure. Perth recorded the highest growth rate of any capital city in 2024-25, and was one of just two capitals to post a net gain from internal migration. Sydney and Melbourne both recorded net losses. With prestige stock in Perth’s tightly held suburbs remaining undersupplied, competition continues to support prices.
Buyers in this segment are also largely insulated from broader pressures, with federal budget changes unlikely to dent confidence in the Perth prestige market.
Why this matters beyond the luxury market
The forces driving Perth’s prestige market, including tight supply, strong population growth and limited stock in tightly held precincts, are also shaping conditions across the rest of the market.
This is no longer a short-term spike. Perth is now in its third consecutive year of double-digit growth in the luxury segment, with City Beach climbing 18% to $3.76 million, Claremont rising 17% to $2.78 million and Mosman Park-Peppermint Grove gaining 16.9% to $3.03 million in the 12 months to February 2026. The gap between Perth and Sydney luxury prices, once vast, is narrowing.
That strength is filtering down through the broader market too, with more buyers now looking at larger, higher-value properties since the federal negative gearing and capital gains tax changes took effect. It’s a useful signal of sentiment more broadly when buyers with genuine means back Perth’s fundamentals at the top end. Nationally, the flight to quality endures, with A-grade, turnkey homes continuing to transact with conviction.
What does this mean for buyers?
Buyers who’ve been waiting for Perth’s top end to slow down may be waiting longer than they think. Three consecutive years of double-digit growth, a widening pool of buyers chasing limited stock and a narrowing gap with Sydney all point to a market still maturing.
Those same fundamentals are shaping the rest of the market too. Sitting out in the hope of a pullback could mean sitting through another cycle of growth instead.
Looking to buy a luxury property in Perth? As an expert Perth buyer’s agent, Resolve Property Solutions can help. Book a complimentary discovery call with our team to explore your options.
