Australia’s housing market is still delivering hefty resale profits for most sellers, but the latest data underline that time in the market, property type, and location are doing the heavy lifting – not a sudden boom.
Cotality’s latest Pain & Gain report shows 95.9% of the 102,000 resales analysed in the December quarter were profitable, the highest share since 2005. The median gain hit a record $365,000, while the median loss edged up to $45,000.
Head of research Gerard Burg (pictured) said the strong results largely reflect accumulated growth over many years.
“Resale profitability remains very high, but these gains have been built over time,” Burg said, noting that “most sellers have held their property for close to a decade”.
Profit‑making properties had a median hold period of 9.2 years, compared with 8.2 years for loss‑making resales. Loss‑making houses were typically owned for just over four years, aligning with purchases made near the COVID‑era peak.
“Shorter ownership periods remain the key risk factor for losses, particularly for those who purchased closer to recent market peaks,” Burg said.
Recent CoreLogic figures show Australian home values are almost 44% higher than five years ago, adding about $280,000 to the median dwelling value – a key driver of the large resale gains now being realised.
Detached houses continue to outpace units on both frequency and size of gains.
Nationally, 98.1% of house resales made a profit, versus 91.2% of units. Median gains were $428,000 for houses compared with $246,500 for units.
Burg said, “the performance gap between houses and units has continued and widened over recent years,” driven by stronger demand for detached stock and “a more challenging supply dynamic in some apartment markets”, particularly inner‑city pockets of Sydney and Melbourne where new unit supply has capped price growth and lifted the risk of resale losses.
Brisbane was the most profitable capital in the quarter, with 99.9% of resales delivering a gain and a median profit of $500,000 after a decade in which dwelling values more than doubled.
Adelaide and Perth also recorded very high profitability, while regional lifestyle markets such as Kiama and Noosa topped the national tables with median gains above $700,000.
Regional markets more broadly recorded a higher share of profitable resales than capital cities, at 97.6% compared with 94.9%, although capitals still delivered larger median dollar gains.
Looking ahead, Cotality expects a more uneven picture in 2026 as higher interest rates, rising listings in Sydney and Melbourne, and softer population growth weigh on demand.
Cotality’s Home Value Index already shows diverging trends, with stronger conditions in Perth and more subdued performance in Sydney and Melbourne feeding into weaker resale conditions in some markets.
“With higher interest rates and more supply coming online, the likelihood of buyers achieving ongoing record resale gains this year will wholly be dependent on timing, location and property type,” Burg said.
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