Prestige Australian waterfront residences are among the world’s most valuable and sought-after properties, with McGrath Research showing they command a much higher price premium than similar trophy homes in the world’s most desirable lifestyle destinations.  

As discussed in the McGrath Report 2025, living alongside the coast remains the ultimate luxury for many, with absolute waterfront properties offering unrivalled lifestyle advantages. An unencumbered frontage provides private waterfront access, uninterrupted water views and the potential for maritime facilities such as a jetty, pontoon or slipway.

Our price data shows that Australian buyers, more so than in many other parts of world, are willing to dig deep into their wallets to achieve this lifestyle. 

In March 2024, out of 20 global luxury residential markets, Sydney had the highest price differential between a home on the water’s edge compared to a similar dwelling one mile (1.6km) inland. 

Sydney recorded a 124% waterfront premium in 2024, up from a 95% premium in 2019. According to the research, Australian waterfront homes recorded some of the largest value uplifts around the world in the first quarter of last year. 

This result trumps the price premiums recorded in other storied international locations such as Miami (93%), Lake Como (83%) and the Bahamas (72%), along with the 49% average premium around the globe.

Brisbane’s waterfront premium has increased from 45% in 2019 to 56% in 2024. This is on par with the 57% premium recorded for a waterfront home in the Algarve region on the southern coastline of Portugal. 

Melbourne’s waterfront premium has recorded sharp growth, from 27% in 2019 to 41% in 2024. It is now on par with the 40% premium paid for a Paris waterfront on the Seine.

For buyers in regional areas along Australia’s East Coast, waterfront homes are much more affordable. 

McGrath Central Coast Group Principal, Mat Steinwede, regularly sees buyers from Sydney taking up this advantageous price disparity in his area, which is less than a 90-minute drive from Sydney CBD. 

Matt says: “For those aspiring to live on the absolute waterfront and have a boating lifestyle, the Central Coast remains within reach and about a third of the price you would expect to pay in Sydney. In saying that, there are not too many deep waterfronts, so discerning buyers need to be willing to wait for the right property.” 

Despite Australia’s vast coastline, waterfront homes are rare buying opportunities because they are often held within the same families for generations due to their high value. 

But in the regions, homes with water views, as opposed to water frontage, are more readily available and can often be purchased with the sale proceeds of high quality but non-waterfront homes in the capital cities. 

Last week, a new Australian record was set with the reported circa $150 million sale of ‘Coonac’, a non-waterfront Italianate mansion in Toorak, Melbourne. But there is a residence that may eclipse that record called ‘Wingadal’ – a harbourfront estate in Point Piper, Sydney – that is on the market with price expectations reportedly above $200 million. 

By John McGrath, Chief Executive Officer of McGrath Estate Agents. 

For more information including articles, checklists, guides and more visit McGrath’s Insights Centre.

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