Despite 2023 local dwelling prices sitting close to the national median of A$757,746, the luxury market delivers everything from grand waterfront mansions to penthouses with multimillion-dollar views.

Mark Beale, principal of Ray White Whitsunday, said while the international buyer pool remains shallow, an increasing wave of domestic buyers are seeking the northern sun.

“In the last three years, we’ve seen a lot of people come from down south with the confidence to spend A$5 million, A$8 million, even A$10 million building big houses on the water,” he said.

Ray White Whitsunday is currently marketing two contemporary luxury houses near Airlie Beach with views over the reef priced between A$3 million and A$8 million.

Lynn Malone of Sotheby’s said the majority of overseas-based buyers are Australian expats who “are often located in Southeast Asia, which makes it easy for them to access Port Douglas and Hamilton Island for family holidays.” When it comes to international buyers though, “the majority are coming from Europe rather than North America,” Malone added. Vacation-home sales in Port Douglas and Hamilton Island have significantly increased over the last few years, she said.

“Many Australians are opting to spend vacation time domestically rather than internationally for two main reasons: the exchange rate and the availability of tropical lifestyle destinations,” Malone said. “That said, some holiday homeowners spend six months of the year at their vacation property, while they spend the rest of the year at their primary residence or traveling.”

According to CoreLogic data, Cairns’s 12-month median dwelling price was A$512,666 by the end of 2023, up 7.7%. Prime properties (homes priced in the top 5%) had simultaneously risen 8.3% to A$908,603.

In Port Douglas, values rose 5.3% to A$549,953 with the median price in the prime market standing at A$1.054 million, up 5.7%. Mackay’s 12-month median was A$463,477 after a 9.1% increase with pricier properties up 10.1% to A$689,189. CoreLogic captured both Airlie Beach and Hamilton Island’s values in the same data set showing a median of A$607,577 after a 10.2% jump. Prime prices there increased by 8.8% to A$1.057 million.

Of the hundreds of islands across the reef, only a handful are home to residential real estate sold via 99-year leasehold agreements. Buyers can purchase private islands such as Pumpkin Island, a 15-acre site in the southern reef currently listed for A$14 million or Temple Island, a 123-acre parcel off Mackay asking A$1.75 million.