Australian homeowners are continuing to reap strong gains from property sales, with profit-making resales holding close to historic highs in the first half of 2025, according to Domain’s latest Profit and Loss Report.
Across the country, 97% of house resales and 88% of unit resales delivered a profit – the highest level since 2005 for houses and since 2022 for units.
The results come as the Reserve Bank’s latest 25bp cash rate cut to 3.6% is expected to lift borrowing capacity and boost market confidence. Domain data also shows the housing upswing has spread to every capital, although 14 suburbs still have houses under $1 million and are recording price falls – a reminder that markets move at different speeds.
The Domain report found most sellers hold their properties for around nine years for houses and eight years for units, up by three and two years respectively compared to 15 years ago. This extended tenure has helped owners build equity and buffer against short-term market volatility.
Median gross gains climbed to $365,000 for houses and $202,000 for units, both up year-on-year. For the minority selling at a loss, the median shortfall was $55,000 for houses and $46,000 for units.
Domain said these results reflect the long-term impact of price growth, particularly since 2021, and the increasing time owners are staying in their homes.
House sellers in capital cities are seeing strong resale results, with profit-making outcomes broadly matching those in regional areas. Brisbane and Perth led the way with more than 99% of sales in profit, while Darwin, Hobart and Canberra had the lowest share of profitable sales.
Median resale gains were highest in Sydney ($700,500), followed by Brisbane ($480,000) and Adelaide ($430,000). Some capitals, including Canberra, Melbourne, Hobart and Darwin, have seen resale profits decline since 2022.
Outcomes for units were more varied. Brisbane, Adelaide and Perth saw more than 97% of unit resales turn a profit, while Melbourne lagged with only 73% profitable sales.
Regionally, unit resale performance outpaced capital cities, driven by longer hold periods – often three years more than in metropolitan markets – and the presence of older owner-occupiers in lifestyle destinations and retirement hubs.
Brisbane and Adelaide units recorded the highest median profits, even outpacing Sydney despite lower price points. By contrast, Canberra and Melbourne saw median profits fall over the past year.
Resale results for regional houses remained robust, with more than 95% of sales delivering gains in most areas. Regional NSW posted the highest median house profits, followed by regional Queensland.
Regional units also outperformed their capital city counterparts, with the strongest results in regional Queensland and NSW. The lowest proportion of profitable unit sales was seen in regional Northern Territory and Western Australia.
The largest house resale profits are found in premium capital city suburbs, where higher purchase prices mean even modest capital growth translates into substantial gains. Longer holding periods in these areas also compound returns.
In regional Australia, top-performing areas tend to be lifestyle destinations attracting high-income buyers seeking holiday homes, sea changers and downsizers.
The largest resale losses in capital cities also tend to occur in more expensive suburbs, though such cases are rare and often based on small sample sizes.
In regional areas, lifestyle markets see more loss-making sales, driven by seasonal demand shifts, migration trends and investor activity. Despite this, losses remain the exception rather than the norm.
Domain expects profit-making sales to remain dominant through 2025, supported by substantial owner equity, limited supply in key markets and continued price growth.
Sydney is tipped to remain resilient, Melbourne’s unit market faces headwinds, and Brisbane, Perth and many regional markets are expected to lead gains.
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