Australia’s Prestige Residential Market Shifts to Favour Buyers

Softer demand, longer selling periods, and greater price sensitivity point to a shift in Australia’s prestige residential market in favour of buyers, new CBRE data shows. 

CBRE’s Prestige Residential Valuers Insights survey Q3 examines demand, buyer activity, property values, and listing expectations across Australia.

The survey showed half of CBRE Valuers report ‘soft’ demand in their local market, up from 20% in Q1 2026 and just 3% a year ago. 

New South Wales had the largest number of Valuers, 57%, report ‘soft’ demand. South Australia and Western Australia were the only two markets where most Valuers reported either ‘moderate’ or ‘strong’ demand. 

A total of 53% of Valuers expect demand will remain steady in their local market for the next 12 months, this is down from 72% in Q1 2026.

CBRE’s Director, Head of Residential Research, Craig Godber said, “While Valuers are reporting demand conditions have softened in their local markets, a majority also expect future demand to remain stable. Overall, this points to a market that is entering a more balanced phase after several years of tight competition and limited supply.”

Local purchasers remained the most active buyers across Australia according to 71% of Valuers, followed by upgraders at 65%, although activity from both groups has eased. 

The survey showed 68% of Valuers expect prestige house values in their local market to fall over the next 12 months, up from just 12% in Q1 2026. This is the first time since the survey began in 2025 that most Valuers expect a price fall. 

A total of 59% of Valuers expect apartment price falls of up to 10% over the next 12 months.

The survey showed South Australia was the main exception to the broader outlook with most Valuers expecting prestige house, apartment and vacant land values to remain stable in the next 12 months.

The Q3 survey findings draw on responses from 34 CBRE Valuers who specialise in high-end residential property across New South Wales, Victoria, Queensland, Western Australia, South Australia and the Australian Capital Territory.