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Cotality’s latest Pain & Gain Report has found that 95.5 per cent of sellers in Australia made a nominal profit on resale, up from 94.9 per cent in the June quarter and the strongest result since July 2005.
During the September 2025 quarter, the median nominal gain from approximately 100,000 nationwide resales analysed hit a new high of $335,000. This result surpasses the previous record of $325,600, which was recorded in the December 2021 quarter.
The rise in profitability has been supported by a revitalised housing market, Cotality said, with national home values reaching record highs for eight consecutive months leading into the end of September 2025.
“The increase in profitability was strongly correlated with rising market values throughout 2025, driven partly by improved credit conditions after cash rate cuts earlier in the year,” said Eliza Owen, Cotality’s head of research.
“In 2026, the path for profitability is less certain because of the changed outlook for interest rates, which will be an issue for recent home buyers in particular.”
The report has shown that houses have continued to outperform units. Profit-making sales accounted for 97.9 per cent of house resales, compared with 90.6 per cent of unit resales. While units made up around one-third of resale activity, they accounted for 68.9 per cent of all loss-making sales.
Regional differences
Brisbane had the most profitable capital city market for the fourth consecutive quarter, with 99.8 per cent of resales making a nominal gain. Brisbane sellers have also recorded the highest median nominal gain among the capital cities, at $444,000 across houses and units. Above that, a record 99.9 per cent of units made a gain across Greater Brisbane in the September quarter.
Adelaide had the second most profitable market, with 99.3 per cent of sales returning a nominal gain and the second highest median nominal gain at $407,500. Perth’s housing market came in third at a 98.2 per cent profitability rate.
Darwin’s market had the highest share of loss-making sales at 17.2 per cent, though it also recorded the largest improvement in profitability over the year to September. Melbourne saw the second-highest rate of loss-making sales at 9.3 per cent, while Sydney recorded a loss-making rate of 7.5 per cent. In Canberra, the rate of profit-making sales rose to 93.5 per cent.
Regional Australia has maintained a higher rate of profitability than the combined capital cities, with 97.3 per cent of regional resales making a nominal gain, compared with 94.4 per cent across the capitals.
However, median dollar gains were lower in regional markets at $290,000, compared with $370,000 across the combined capital cities.
Hold periods and the future outlook
The median hold period for all resales increased to nine years during the quarter, compared with 8.2 years for loss-making sales.
Owen said shorter selling times can increase the risk of making a loss, but the recent lift in profitability across most regions suggested a greater level of stability has returned to the market.
Looking ahead to 2026, however, Owen cautioned that the path for profitability was less certain.
She said: “Weakening market conditions, as seen by the capital city clearance rate dipping below 60 per cent at the end of 2025, often coincide with slowing rates of profitability. We are now seeing some higher-value segments in Sydney already moving into decline, which could test the resilience of profitability for short-term sellers in the year ahead.”