Australia’s property market continues to showcase its resilience and exceptional wealth-building potential, with the latest Domain Profit and Loss Report revealing record-breaking profits from property sales.
According to the report, 96% of houses and 90.7% of units sold for a profit over the past financial year—figures not seen since 2008 for houses and 2011 for units.
These results highlight the enduring appeal of property investment, proving its value even amid economic uncertainties and shifting market conditions.
The market’s performance reflects not only the strong demand for housing but also underscores the vital role real estate plays in ensuring financial stability for many Australians.
Nationwide Surge in Record-Breaking Property Profits
According to latest report a surge in profit-making property sales, reaching levels not seen in over a decade—a testament to the enduring strength of real estate as an investment.
Nationally, 96% of houses resold for a profit, highlighting the continued robustness of the housing market. While slightly lower, units also saw impressive gains, with 90.7% of resales generating profits—a notable increase compared to previous years.
A striking shift emerged in regional markets, outperforming urban centers for the first time since 2009. The report shows 94.6% of regional units sold at a profit, surpassing the 89.4% seen in cities.
This trend reflects changing buyer preferences, likely influenced by the pandemic, as more Australians embrace the lifestyle benefits and affordability of regional living.
Brisbane Emerges as the Front-Runner
Brisbane has emerged as the standout performer among Australia’s capital cities, with 99.5% of houses and 95.6% of units reselling for a profit.
This exceptional performance reflects growing demand in Queensland’s capital, which has become increasingly attractive to both investors and homebuyers. Key drivers behind the city’s success include population growth, economic resilience, and a robust local property market.
In comparison, Sydney and Melbourne also recorded strong but slightly lower profit-making sales. In Sydney, 95.6% of houses and 89.4% of units sold at a profit, while Melbourne reported 97.9% for houses and 85.3% for units.
These differences highlight the unique dynamics at play in each city, where factors like housing affordability, local economic conditions, and market cycles influence profitability.
Regional Markets Shine as Unexpected Leaders
The report highlights the impressive performance of Australia’s regional markets, which have consistently outpaced their urban counterparts in profitability.
Since 2021, regional units have sold at higher profit margins than city properties, reversing a 12-year trend. Key factors driving this shift include lower entry costs, greater price stability, and changing buyer preferences fueled by the rise of remote work and lifestyle-driven relocations.
For the first time in over a decade, a higher proportion of regional homeowners secured profits compared to their urban counterparts.
This marks a significant turning point, signaling that regional markets are no longer secondary choices but have evolved into prime investment opportunities. Their resilience during economic fluctuations, combined with greater affordability, positions these markets as increasingly appealing for both investors and homebuyers.
Generation X and Older Millennials: The Primary Beneficiaries
Generation X and older Millennials as the key beneficiaries of the current market boom. Typically aged between their late 30s and late 40s, this demographic has leveraged its established foothold in the property market to capitalize on rising prices.
The report highlights that suburbs with a high concentration of these age groups have experienced significant wealth growth across diverse income brackets. Their experience and financial stability have enabled them to navigate the market effectively, taking full advantage of favorable conditions.
By holding onto properties longer, this group has reaped substantial capital gains, demonstrating the value of long-term investment strategies in real estate. Their success reinforces the importance of patience and foresight in building wealth through property ownership.
Strong Profits, Yet Losses Persist
While the overall outlook highlights significant profits, the report also notes that losses, though uncommon, do still occur.
The median profit across the combined capitals stood at $395,000, far surpassing the median loss of $73,000.
In terms of dollar gains for houses, Sydney, Melbourne, and Canberra led the way, with median profits of $655,000, $397,000, and $435,000, respectively.
For units, Sydney again topped the list with a median profit of $202,000, followed by Hobart at $198,000 and Adelaide at $175,000. These figures underscore the strong returns in most markets, despite occasional setbacks.
However, the report emphasizes that losses are rare anomalies in the property market.
They typically arise during pivotal market shifts—such as buying at the peak of a cycle just before a downturn or correction.