Slobodan Živojinović was the defending champion but lost in the quarterfinals to Lars-Anders Wahlgren.
Ivan Lendl won in the final 6–2, 6–2, 6–1 against Wahlgren.
Seeds
Ivan Lendl (champion) Jakob Hlasek (first round) Carl-Uwe Steeb (second round) John Fitzgerald (first round) Slobodan Živojinović (quarterfinals) Eric Jelen (first round) Richard Matuszewski (first round) Wally Masur (second round)
Draw
Finals
Top half
Bottom half
References 1989 Australian Indoor Championships draw