Australian property sellers continued to reap strong returns in the June quarter, with resale profits hitting new records despite a modest dip in the overall rate of profitability, according to Cotality’s latest Pain & Gain report.

Record Gains Amid Softer Profitability

The report, which analysed around 97,000 resales nationally, found 94.8% of transactions delivered a nominal gain in the June quarter, slightly down from 95.0% in March but still well above the decade average of 91.5% .

Despite the marginal fall in profitable sales, the median nominal gain rose to a record $315,000, up from $305,000 the previous quarter and well above the decade average of $250,000. At the same time, the median loss shrank to $42,000, its lowest level in over a year .

In total, resale gains across Australia amounted to $36.6 billion, while losses deepened slightly to $292 million .

More Sellers Incur Losses in Key Markets

The proportion of loss-making sales inched higher to 5.2% nationally. Much of this increase stemmed from Sydney and Melbourne’s unit markets, which together accounted for almost 2,500 loss-making transactions.

Cotality’s Head of Research, Eliza Owen, noted that losses remain concentrated in markets yet to recover to prior peaks. “The top ten markets for loss-making resales accounted for a third of all losses in the quarter, compared to one quarter over the decade average,” she said.

However, she added the trend may already be shifting, with national home values rising 1.3% between June and August, reducing the likelihood of loss-making resales.

Regional Markets Still Ahead – But Gap Narrows

Regional Australia continued to outperform capital cities, with 96.4% of resales delivering a profit, compared to 93.9% across the capitals .

However, the gap is narrowing. Over the June quarter, profitability rates in the capitals held steady, while regional rates eased from 96.6% in March. Recent months suggest the margin could tighten further, as capital city values rose 1.9% from June to August, outpacing the 1.6% gain across regional markets.

Standout City Performances

• Brisbane topped the capital cities for the third consecutive quarter, with 99.7% of resales making a profit and the highest median gain of $400,000 .
• Adelaide followed closely with 99.1% profitability and a median gain of $390,000.
• Perth posted 98.0% profitable resales, reflecting its strong recovery after years of downturn.
• At the weaker end, Darwin had the highest loss-making rate at 20.6%, though profitability improved markedly from last year. Melbourne recorded a 10.6% loss rate, while Sydney sat at 7.7%.

Profit Hotspots by LGA

NSW dominated the list of Australia’s most profitable markets. Sellers in Kiama enjoyed the nation’s highest median resale gain at $758,000, reflecting more than 120% growth in median dwelling values over the past 12 years . Other high-gain markets included Sydney’s Woollahra ($575,000) and The Hills ($684,800), as well as Byron Bay ($718,000).

Houses Outperform Units

Houses remained far more profitable than units, with 97.2% of house resales making a gain, compared to 89.8% of units. Units accounted for just under a third of resales but made up more than 60% of all losses nationally .

Shorter Hold Periods Emerging

The median hold period slipped slightly to 8.7 years, down from 8.8 years in March. Short-term resales (two to four years) were the most common at 15.3% of activity, often linked to higher rates of loss, but still delivered median profits of $175,000.