Invest in luxury homes now, experts say

Twin Waters in Queensland saw 27 percent its apartments put on the market last year, while 21 percent of units on Hope Island were up for sale.

House prices in Surfers Paradise are currently running 18 percent lower than this time last year, according to RP Data, while homes in Byron Bay have suffered a 15 percent tumble in value.

Meanwhile, Western Australia presents the biggest opportunity for investors to leap onto the top rung of the property market - with nine of RP Data’s top twenty bargains situated in Perth – including Scarborough and Claremont.

Cameron Kusher, senior analyst at RP, said the top end of the market is showing signs of a recovery as buyers cash in, indicating that the window of opportunity may soon shut.

"After a lacklustre performance in the March quarter of 2009, we are seeing resurgence in activity at the top end which is encouraging," he said.

"The prestige market has suffered due to few active buyers and a higher than normal amount of stock on the market which has led to price falls and reductions in the asking price of many homes that are being advertised for sale."

The average value of a home at the top end of the market has tumbled 8 percent since March 2008 – with waterside properties suffering the largest discounts.

"With the upper end of the market showing the first signs of improvement, but with prices still well below peak and potential buyers remaining thin on the ground, now is clearly the best opportunity to get a competitive price on a high quality property before buyers become more active."

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