Australia’s Property Market: Record Profits, but Cracks Emerging

Australia’s property market continues to reward most sellers, although signs of weakness are starting to emerge.

Cotality’s latest Pain & Gain Report analysed nearly 97,000 resales nationwide and found 94.8% of properties sold for a profit.

That’s only a slight dip from 95% in March, but still well above the decade average of 91.5%.

Even as the share of profitable resales eased, the total value of gains hit a new record. Median profits climbed to $315,000, while median losses dropped to $42,000.

In dollar terms, total profits reached $36.6 billion, up from $33.3 billion in the March quarter though losses also grew slightly to $292 million.

Houses Still Outperforming Units

Detached houses remain the clear winners.

A huge 97.2% of house resales were profitable, compared with 89.8% of units. Despite units making up a third of all transactions, they accounted for almost two-thirds of all losses.

The gap in returns is stark, median gains of $366,500 for houses versus $210,000 for units. In fact, nearly half of Melbourne City units sold at a loss, while Parramatta’s apartment values remain around 7.6% below their 2017 peak showing how long it can take to recover from poor-performing markets.

Why Units Carry More Risk

Oversupply and investor concentration are key reasons units lag.

Many inner-city markets are saturated with new developments that struggle to hold value over time, while investor-heavy areas see sharper swings when lending rules or rental demand shift. These factors explain why loss-making resales are far more common among units.

Regional vs City: The Gap Narrows

Regional markets, the standout performers during COVID are now stabilising, while capital cities regain momentum.

In the June quarter, 96.4% of regional sales were profitable versus 93.9% in the capitals, but the cities saw higher median profits ($346,000 vs $275,000).

It’s a sign the post-pandemic shift is reversing as buyers return to urban job hubs and amenity-rich suburbs.

Where the Weak Spots Are

Melbourne City remains the country’s softest market, with nearly half of all resales making a loss.

Hobart also saw its weakest quarter since 2016, with a 7.2% loss rate and values still about 10% below 2022 peaks.

In Sydney, Parramatta’s apartment sector and inner-Melbourne pockets such as Stonnington and Port Phillip continue to record below-average results.

Why Time In The Market Matters

Time in the market remains one of the strongest predictors of success.

The median hold period nationally was 8.7 years, and shorter-term sales (2–4 years) were riskier, 7.7% sold at a loss versus 5.2% overall.

The takeaway? Property works best as a long-term wealth-building strategy, not a short-term trade

City Standouts

• Brisbane: 99.7% of sales profitable; median gain $400,000

• Adelaide: 99.1% profitable; median gain $390,000 several councils recorded 100% profitability

• Sydney: Highest house profits ($633,000 median gain) but weaker unit results dragged overall performance

• Melbourne: 10.6% of sales at a loss, heavily unit-driven

• Perth & Darwin: Both rebounding strongly, with improving profitability and buyer demand

The Takeaway for Buyers and Investors

The latest figures show a resilient market overall, but also a widening gap between good buys and poor performers.

Choosing the right property type, location and finance structure is now more important than ever.

At Claremont Financial, we help clients make smarter, data-driven property decisions not just to buy, but to build long-term wealth.

From structuring your loans strategically to accessing the right lender mix, we’ll guide you through every step so you can buy with clarity and confidence.