Nearly all properties resold in the March quarter turned a profit, even as values flatline in Sydney and Melbourne
Residential resale profitability reached its highest level since the March quarter of 2005, even as momentum across the broader property market has begun to slow, according to new data from Cotality.
The property data firm's latest Pain & Gain report, which analysed nearly 101,000 resales in the first quarter of 2025, found that 96% of properties sold in the period returned a nominal profit, up from 95.9% in the December quarter.
The median gain rose to a record $377,000, while the median loss held steady at $45,000.
"The strong resale results we're seeing today largely reflect the substantial value growth accumulated over recent years rather than current market conditions," said Gerard Burg, head of research at Cotality. "Housing values continued to rise through most of 2025, and many sellers have benefited from holding their property through multiple growth cycles, which has allowed them to build significant equity over time."
Rolling three-month rate of profit-making sales vs capital growth - dwellings, national 
Source: Cotality
Recent buyers more exposed to losses
Loss-making resales were concentrated among owners with shorter hold periods. Properties sold at a loss had a median hold period of 4.3 years, placing many purchases around the market peak in late 2021 and early 2022. Properties sold at a profit had typically been held for 9.1 years.
"Most people selling for a profit today are benefiting from years of accumulated value growth, but those who purchased closer to the recent peak have had less time to build equity and are more exposed to market fluctuations," Burg said.
"The figures illustrate the value of a buy-and-hold approach to property ownership. Time remains one of the most effective ways to absorb market cycles and improve the likelihood of a positive resale outcome."
Brisbane and Adelaide post half-million-dollar median gains
Brisbane recorded the highest share of profitable resales among the capital cities at 99.8%, with a median gain of $525,190. Adelaide followed closely with a profitability rate of 99.3% and a median gain of $477,000. Perth also performed strongly, with 98.9% of resales returning a profit and a median gain of $475,000.
"Brisbane, Perth and Adelaide have all benefited from strong population growth, tight housing supply and sustained buyer demand," said Burg. "Many owners who bought before the recent upswing, during a period of affordability and low interest rates, are now selling into a market where values have risen substantially, translating into some very significant resale gains."
| Median hold period of resales at a loss/gain, houses vs. units, March quarter 2026 (in years) | ||||
|---|---|---|---|---|
| Region | Pain | Gain | ||
| Houses | Units | Houses | Units | |
| Sydney | 5.7 | 8.6 | 10.8 | 9.4 |
| Regional NSW | 4.1 | 4.3 | 9.0 | 7.9 |
| Melbourne | 4.0 | 10.0 | 10.6 | 9.4 |
| Regional Vic | 3.7 | 3.6 | 8.4 | 8.0 |
| Brisbane | 1.8 | – | 8.5 | 6.4 |
| Regional Qld | 13.6 | 13.8 | 7.3 | 6.1 |
| Adelaide | 1.7 | – | 9.6 | 7.3 |
| Regional SA | 16.0 | – | 8.3 | 5.6 |
| Perth | 8.4 | 11.2 | 8.5 | 7.3 |
| Regional WA | 14.8 | 16.4 | 7.5 | 5.1 |
| Hobart | 4.2 | – | 9.3 | 8.0 |
| Regional Tas | 2.9 | – | 7.8 | 6.9 |
| Darwin | 11.4 | 12.1 | 10.0 | 10.3 |
| Regional NT | 10.3 | 9.5 | 13.1 | 9.4 |
| Canberra | 3.8 | 3.7 | 10.8 | 8.5 |
| Capital city | 4.2 | 9.0 | 9.8 | 8.8 |
| Regional | 4.4 | 11.4 | 8.2 | 7.0 |
| National | 4.3 | 9.0 | 9.1 | 8.4 |
| Source: Cotality | ||||
Houses outperform units
The gap between houses and units remained wide in the March quarter. Nationally, 98.1% of house resales were profitable compared with 91.9% of unit resales. The median gain for houses was $440,000, against $256,000 for units.
Melbourne's unit market was among the weakest in the country, with only 81% of resales generating a profit.
"In a number of established apartment markets, particularly in Melbourne and parts of Sydney, additional supply has limited capital growth and increased the incidence of loss-making resales," Burg said. "That has created a much wider performance gap between houses and units than we've typically seen in previous cycles."
Coastal markets lead on resale gains
Noosa, on Queensland's Sunshine Coast, recorded the nation's highest median resale gain at $729,750. Five Western Australian local government areas also featured in the top 10 nationally, including Melville, Joondalup, Nedlands, East Fremantle, and Chittering.
"The regions recording the largest resale gains today are generally the same markets that experienced some of the strongest housing value growth through the pandemic and post-pandemic period," Burg (pictured right) said.
"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."
Further gains unlikely at current pace
Despite the record result, Cotality cautioned that the rapid pace of growth seen in recent years is unlikely to continue across all markets. The firm's national hedonic home value index showed no growth in May, with Sydney and Melbourne recording declines while other markets continued to post gains.
"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," Burg said. "Declining values will erode profitability in the coming months, but future performance will increasingly depend on local market conditions, property type and when a property was purchased."
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