Statistical information indicates that over the past decade, the value of luxury residences in Sydney has nearly doubled, whereas lower-priced homes struggled to achieve such growth levels. Statistics from Ray White show that the value of luxury residences in Sydney increased by 38% faster than mid-range homes, and the growth rate of premium apartments exceeded mid-range homes by 55%.

Chief Economist Nerida Conisbee points out that owning a luxury residence or apartment in Sydney's most expensive suburbs will be a reliable investment over the next decade because land resources in these areas are becoming increasingly scarce and often situated near beaches, bays, and rivers. Consequently, the appreciation advantage of luxury residences will become more pronounced.

Houses with unique features, such as scenic or waterfront views, may experience further value increases. Paul Biller, Managing Director of Biller Property Double Bay, suggests that as land available for development becomes scarcer, the competitiveness of premium residences will continue to increase. Properties in blue-chip locations will experience strong appreciation because they are irreplaceable. This situation has resulted in luxury villas appreciating by $1.8 million more than standard villas, while high-end residences in the northern suburbs of the Eastern Suburbs are $3 million higher than standard residences.

However, while luxury residences have significant appreciation potential, they also exhibit some degree of volatility. Conisbee notes that during pandemics, luxury residences have seen much greater growth than more affordable properties. However, there are also periods where the price declines of luxury residences exceed those of standard homes. Therefore, selecting the right timing for entry is crucial when purchasing luxury residences. Before making decisions, careful evaluation of market conditions and consultation with professionals for more accurate information and advice are necessary.