Overview
- Record profits, driven by past growth: 96% of resales delivered a profit in Q1—the highest since 2005—with a record median gain of $377k, reflecting value built over years rather than current market momentum.
- Growth is uneven and cooling: Strong gains are concentrated in mid-tier capitals and lifestyle markets, but conditions are diverging.
Australian homeowners are continuing to reap therewards of the housing boom years, with national resale profitability rate reachingits highest level in more than two decades as the median gain hit a record inthe March quarter.
Cotality's latest Pain & Gain report analysed almost 101,000 resales in Q1, finding 96.0%of residential property resales delivered a nominal profit over the quarter, upslightly from 95.9% in December and the strongest result since 2005. The mediangain increased to a record $377,000, while the median loss remained unchangedat $45,000.
Cotality Head ofResearch, Gerard Burg, said despite signs of slowing momentum across parts of the housing market, sellers are still benefiting from growth built over many years.
"The strong resale results we're seeing todaylargely reflect the substantial value growth accumulated over recent yearsrather than current market conditions," Mr. Burg said.
"Housing values continued to rise through mostof 2025, and many sellers have benefited from holding their property through multiple growth cycles, which has allowed them to build significant equity overtime."
Recent buyers remain most exposed
While resale profitability hit a record high, those who sold for a loss were more likely to be recent purchasers.
Loss-making house resales had a median hold period of 4.3 years in the March quarter, placing many of those purchases around the market peak in late 2021 and early 2022. By comparison, properties sold at a profit had typically been held for 9.1 years.
Mr Burg said the results highlight how the difference in market conditions can change the financial outcome significantly, for those with shorter ownership periods.
"Most people selling for a profit today arebenefiting from years of accumulated value growth, but those who purchasedcloser to the recent peak have had less time to build equity and are moreexposed to market fluctuations," he said.
"The figures illustrate the value of a buy-and-holdapproach to property ownership. Time remains one of the most effective ways toabsorb market cycles and improve the likelihood of a positive resaleoutcome."
Half-million-dollargains in Brisbane and Adelaide
Brisbane recorded the highest share of profitable resales of any capital city at 99.8%, with a median gain of $525,190 following a prolonged period of interstate migration, housing shortages and above-average value growth. Adelaide was a close second, with 99.3% of resales delivering a profit and a median gain of $477,000.
Perth also recorded strong results, with 98.9% ofresales generating a gain and a median profit of $475,000.
Mr. Burg said the mid-tier capitals attracted strongbuyer interest during the past five years because they offered a moreaffordable alternative to markets such as Sydney and Melbourne, which has helpeddrive the rapid value growth now flowing through to resale profits.
"Brisbane, Perth and Adelaide have allbenefited from strong population growth, tight housing supply and sustainedbuyer demand," he said.
"Many owners who bought before the recentupswing, during a period of affordability and low interest rates, are nowselling into a market where values have risen substantially, translating intosome very significant resale gains."
Houses deliverbigger rewards than apartments
The gap between houses and units remainssubstantial, both in terms of profit and size of gain.
Nationally, 98.1% of house resales recorded a profitin the March quarter compared with 91.9% of units. The median gain for houseswas $440,000, compared to the $256,000 recorded for units.
Melbourne's unit market remained one of the weakestin the country, with only 81.0% of resales generating a profit.
Mr Burg said increased apartment supply in somelocations has created more choice for buyers but has also weighed on resaleperformance.
"In a number of established apartment markets,particularly in Melbourne and parts of Sydney, additional supply has limitedcapital growth and increased the incidence of loss-making resales," hesaid.
"That has created a much wider performance gapbetween houses and units than we've typically seen in previous cycles."
Lifestyle marketstop the nation
Coastal lifestyle markets continued to dominate the list of Australia's strongest-performing regions.
Noosa, on the Sunshine Coast in Queensland, recorded the nation's highest median resale gain at $729,750, as the popular coastal region benefited from strong long-term demand and limited housing supply.
Five Western Australian local government areas also ranked among the nation's top 10 regions for resale profits, including Melville, Joondalup, Nedlands, East Fremantle and Chittering.
Mr Burg said many of the strongest-performing markets had experienced sustained demand over several years.
"The regions recording the largest resale gainstoday are generally the same markets that experienced some of the strongesthousing value growth through the pandemic and post-pandemic period," hesaid.
"Places such as Noosa, a number of Western Australian markets and the Byron Shire in Northern NSW have seen demand consistently outpace supply, and those conditions have translated into substantial wealth gains for homeowners."
Record profitsunlikely to accelerate further
Although resale profitability remains exceptionally strong, Mr. Burg said the strong pace of growth recorded over recent years post-pandemic is unlikely to be repeated across all markets.
Cotality’s national hedonic home value index showedno growth in May, and conditions have become more varied, with declinesunderway in Sydney and Melbourne while other markets continue to record growth.
"The resale results for the March quarter are a reflection of the strong housing conditions experienced across most capital cities over the past five years rather than a forecast of where the market is heading next," he said.
"Declining values will erode profitability inthe coming months, but future performance will increasingly depend on localmarket conditions, property type and when a property was purchased."
