At McGrath, we believe the right buyer for your home could be just around the corner or halfway around the world. That’s why our collaborative approach ensures your property receives exposure to a far broader pool of potential buyers than traditional local marketing alone.
Our top agents across Sydney’s most prestigious areas operate as one connected team, alongside the broader Knight Frank and Bayleys network. We work closely with our partners, both locally and internationally, leveraging their exclusive buyer connections and market intelligence to create greater interest and extraordinary results for our clients.
When you list with McGrath, you’re not just working with one local expert — you’re backed by an entire team of leading agents dedicated to finding the right buyer for your home.
In the following pages, you’ll find a selection of the exceptional results our network has achieved for clients over the past year.
Prestige Residential Update
The Big Picture
• The wealthy population grew 3.9% in the past year as the stock market outperformed. A stronger economy is forecast despite modest private business investment.
• Interest rate target has been lowered to 3.60% with the Reserve Bank of Australia anticipating a further reduction in next six months.
• Compared to a year ago, the construction of new residential homes in NSW was 2.2% lower, but building approvals were 13.4% higher.
3.60%
The Reserve Bank of Australia (RBA) lowered the interest rate target 25 bps to 3.60% in August 2025. Many banks followed this direction and adjusted their mortgage lending rates accordingly. Interest rates significantly influence the cost of borrowing money, which in turn affects the willingness and ability to apply for a home loan. The RBA forecasts the target could be 3.40% by the end of 2025, and 2.90% in 2026. When interest rates are lowered, borrowing becomes cheaper, which can stimulate demand for residential property and drive economic growth.
+10.0%
Australia’s stock market performance on the S&P/ASX 200 ramped higher in Q2 2025 with 8.9% growth, to calculate a total annual change of 10.0% in the year ending Q2 2025. This comes after annual change of -10.2% in Q2 2022, with solid annual growth of 9.4% in Q2 2023 and 8.1% in Q2 2024. Strong stock market performance can be a leading indicator for the potential upward growth trajectory in prestige residential prices.
• Annual sales are trending lower for Sydney prestige homes, average selling times are taking longer, while both new listings to market and overall total residential listings are tracking below a year ago.
• Sydney prestige property prices are likely to recover, with further 5% price growth forecast for 2026.
• The luxury rental market remains undersupplied and this is reflected in residential vacancy. Over the coming year, Sydney prestige rents are likely to remain elevated.
+1.3%
Economic growth remains a key driver given it can increase demand across property markets. Australia recorded economic growth at 1.3% in 2024, following stronger performance of 3.1% in 2022 and 1.5% in 2023. Looking forward, the RBA forecasts economic growth to lift to 2.1% in 2025 and 2.2% in 2026. Ideally, sustainable economic growth is considered to be around 2% to 3%. When it comes to new private business investment in Australia, there was 0.4% growth in 2024, following significant growth of 6.2% in 2022 and 8.9% in 2023. In 2025, business investment is forecast to rise by 0.3% in 2025 and 2.0% in 2026.
+3.9%
The wealthy population across Australia continues to increase, despite the extended period of global economic instability and geopolitical shocks. The drivers of wealth creation and maintaining this wealth have been real estate and the solid underlying performance of the stock market. Australasia’s wealthy population grew by 3.9% in 2024, to 49,367 people with net wealth of more than US$10 million. This population is forecast to grow by a further 5.3% by the end of 2028 (or an average 1.3% per year) according to the Knight Frank Wealth Sizing Model.
Prestige Residential Sales Update
Prestige Sales
Sydney prestige residential sale transactions above $5 million tallied to 385 in Q2 2025, moving upwards by 52% from the previous quarter. This was influenced by a lower number of new listings and the market anticipating a further reduction in interest rates. Over the past year to Q2 2025, the total number of prestige sales was 6% lower, reaching 1,622 sales. As a benchmark, over the past five years, the annual average was 1,375 sales.
Total Number of Prestige Sales ($5m+)
Sydney Prestige
Super Prestige Sales
The share of super-prestige sales (above $10 million) was recorded at 24%, after analysing the total number of prestige sales (above $5 million) across Sydney in the year ending Q2 2025. This was higher than one year ago when the proportion was 20%, and remains above the 19% share recorded five years ago. Over the past year to Q2 2025, Sydney’s super-prestige sales volume has increased by 12%, and grown by 338% over the past five years.
Share of Super-Prestige Sales ($10m+), by Number
Sydney Prestige
Prestige Residential Prices Update
Prestige Residential Prices Update
Sydney prestige property prices fell by 1.6% in the year ending Q2 2025, with a gain of 0.1% recorded in the last quarter. Looking back at price growth since Q2 2020, prestige houses (23.7%) outpaced prestige apartments (17.1%) over the five years. In Q2 2025, prestige house prices were 0.3% higher but were 1.1% lower on the previous year. In the same quarter, prestige apartment prices fell by 0.2% after declining 2.1% in the past year. Annual residential price growth has averaged 3.9% over the past five years.
Change in Prestige Prices
Sydney Prestige
Change in Prestige Prices
Sydney Prestige
Sydney prestige property prices fell by 1.6% in the year ending Q2 2025, with a gain of 0.1% recorded in the last quarter. Looking back at price growth since Q2 2020, prestige houses (23.7%) outpaced prestige apartments (17.1%) over the five years. In Q2 2025, prestige house prices were 0.3% higher but were 1.1% lower on the previous year. In the same quarter, prestige apartment prices fell by 0.2% after declining 2.1% in the past year. Annual residential price growth has averaged 3.9% over the past five years.
Prices Prestige Price Outlook -1.6% +5%
Prestige Price Outlook +5%
Source: McGrath Research Prestige Prices
Forecast for Prestige Prices
Sydney Prestige
Forecast for Prestige Prices
Sydney Prestige
Looking ahead, McGrath Research anticipates Sydney prestige residential prices to increase by 1% by the end of 2025, followed by a stronger 5% rise in 2026. Factors taken into consideration include the forecast of a stronger economy, a solid performing stock market and the reduction of interest rates encouraging growing buyer confidence.
Looking ahead, McGrath Research anticipates Sydney prestige residential prices to increase by 1% by the end of 2025, followed by a stronger 5% rise in 2026. Factors taken into consideration include the forecast of a stronger economy, a solid performing stock market and the reduction of interest rates encouraging growing buyer confidence.
Source: McGrath Research
Sydney Prestige, Q2/25
Sydney Prestige, Q2/25
Source: McGrath Research
Prestige Residential Rents Update
Prestige Residential Rents Update
Prestige Rents
Prestige Rents
Sydney prestige property rents rose by 2.0% in the year ending Q2 2025, with a rise of 0.8% recorded in the last quarter. Looking back at rental growth over the five years since Q2 2020, prestige apartments (52.0%) outpaced prestige houses (34.8%). Prestige apartment rents in Q2 2025 were 3.2% above a quarter ago, and were 11.6% higher over the year. In the same quarter, prestige house rents fell by 1.2% after falling 5.3% in the past year. On average, over the past five years, prestige rents grew 7.6% per year.
Change in Prestige Rents
Sydney Prestige
Change in Prestige Rents
Sydney prestige property rents rose by 2.0% in the year ending Q2 2025, with a rise of 0.8% recorded in the last quarter. Looking back at rental growth over the five years since Q2 2020, prestige apartments (52.0%) outpaced prestige houses (34.8%). Prestige apartment rents in Q2 2025 were 3.2% above a quarter ago, and were 11.6% higher over the year. In the same quarter, prestige house rents fell by 1.2% after falling 5.3% in the past year. On average, over the past five years, prestige rents grew 7.6% per year.
Prestige Rent Outlook +2.0% +3%
Source: McGrath Research
Forecast for Prestige Rents
Sydney Prestige
Forecast for Prestige Rents Sydney Prestige
In recent years, a modest number of new prestige homes have been built in Sydney and only a small share of these homes have been made available in the rental pool. As a result, McGrath Research forecast there will remain upward pressure on rents of 3% at the end of 2025, with a further 3% rental growth likely in 2026.
In recent years, a modest number of new prestige homes have been built in Sydney and only a small share of these homes have been made available in the rental pool. As a result, McGrath Research forecast there will remain upward pressure on rents of 3% at the end of 2025, with a further 3% rental growth likely in 2026.
Source: McGrath Research Prestige Rental
Sydney Prestige, Q2/25
Source: McGrath Research
Cit y & East:
53-55 Cranbrook Road, Bellevue Hill
78 Kambala Road, Bellevue Hill
38 Roslyndale Avenue, Woollahra
5403/1A Barangaroo Avenue, Barangaroo
4 Cranbrook Road, Bellevue Hill
5 New South Head Road, Vaucluse
8 Cooper Street, Paddington
315/180-186 Campbell Parade, Bondi Beach
102/134 Campbell Parade, Bondi Beach
Bellevue Hill
‘Monkton’ Blue-ribbon family estate with world class harbour views 53-55 Cranbrook Road
Sold for $43,500,000
Architectural masterpiece and a world class entertainer on a 1,567 sqm block 78 Kambala Road Bellevue Hill
Architecturally and thoughtfully crafted c1854 by Frederick Clarke embodying Dutch colonial style 38 Roslyndale Avenue Woollahra
The apex of luxury living within ‘One Barangaroo’ 5403/1A Barangaroo Avenue Barangaroo
Sold for $17,500,000
Stunning private five bedroom family home on 677sqm in exclusive enclave 4 Cranbrook Road Bellevue Hill
Sold for $16,600,000
5 New South Head Road Vaucluse
Flowing effortlessly, the floorplan has been carefully considered to accommodate a growing family for years to come
Sold for $12,500,000
8 Cooper Street Paddington
This outstanding home is arguably his most spectacular Paddington creation
Sold for $13,250,000
315/180-186 Campbell Parade Bondi Beach
Eye level panoramas of the sand and surf beckon in this outstanding residence
Sold for $9,200,000
Benchmark apartment with impeccable finishes and superior craftsmanship 102/134 Campbell Parade Bondi Beach
Sold for $8,500,000
5 Sea Street Hunters Hill
An absolute waterfront masterpiece of incredible elegance and grandeur
Sold for $16,515,000
Stunning contemporary oasis in this exquisitely reimagined early-century classic 43 Prince Albert Street Mosman
Sold for $15,000,000
Architectural home reveals vast harbour backdrop 106 Arabella Street Longueville
