Sydney has emerged as one of the world’s most desirable destinations for ultra-wealthy property buyers, now rivaling New York and overtaking London for mega residential transactions.
New analysis from Knight Frank shows that in the final quarter of 2025, Sydney recorded 52 residential property sales above US$10 million, marking a 58 per cent increase compared to the previous quarter. This surge places the Harbour City ahead of traditional global luxury hotspots such as Miami, Paris, Singapore and London.
Sydney climbs the global prestige rankings
With its volume of super-prime transactions, Sydney ranked fifth globally for residential sales above US$10 million. It sat only marginally behind New York, which recorded just five more prestige sales over the same period.
Topping the global list were Dubai and Hong Kong, followed by Los Angeles — home to mansion-lined suburbs like Beverly Hills, long favoured by Hollywood’s elite.
Billions flowing into Sydney’s super-prime market
Quarterly spending on Sydney’s most exclusive homes reached $1.3 billion, according to Knight Frank’s Global Super-Prime Intelligence report. Across the whole of 2025, nearly $3.3 billion worth of super-prime property changed hands in Sydney alone.
The city’s highest sale of the year was the $82.5 million purchase of a luxury home on Tivoli Avenue in Rose Bay. Close behind was an executive apartment in Barangaroo, which sold for approximately $80 million.
A safe haven for global capital
The surge in high-end transactions signals that Sydney has firmly positioned itself as a safe haven for global capital, particularly at a time when other major markets are grappling with policy uncertainty.
The Knight Frank report noted that London’s decline was largely driven by ongoing debates around wealth and property taxation, which dampened buyer confidence. In contrast, Sydney’s strength has been underpinned by fundamental supply and demand dynamics.
Eastern suburbs and lower north shore lead the charge
Adam Ross, head of international and private clients at McGrath — Knight Frank’s Australian partner — described the quarter as a particularly busy period for prestige property.
“The majority of the super-prime action was concentrated in Sydney’s prestigious eastern suburbs,” Mr Ross said.
He added that the lower north shore was also experiencing strong momentum, with suburbs such as Mosman repeatedly resetting price records.
“Lack of supply and strong demand at the top end continue to drive resilient activity,” he said, noting that Sydney’s elite market has remained insulated from broader global economic headwinds.
Strong rebound at the top end
Liam Bailey, global head of research at Knight Frank, said Sydney posted one of the quarter’s strongest rebounds, reflecting the broader resilience of Australia’s upper-tier housing market.
By contrast, London’s momentum remained subdued amid uncertainty surrounding UK wealth and property taxes, which continued to weigh on buyer sentiment.
Deep pool of ultra-high-net-worth buyers
Ray White Double Bay principal Elliott Placks, who was responsible for five of Sydney’s top 20 sales last year, said demand for elite properties remains deep.
“I’m aware of at least 15 buyers with budgets of more than $50 million to spend on luxury properties,” he said.
A tale of two markets
Sydney’s growing appeal among the world’s wealthiest buyers comes at a time when affordability pressures are intensifying across the broader housing market. Recent interest rate rises are expected to further challenge entry-level and first-home buyers, highlighting a widening divide between the super-prime sector and the rest of the market.
Despite these challenges, Sydney’s position on the global luxury property stage continues to strengthen, reinforcing its reputation as one of the world’s premier destinations for high-end real estate investment.
