Australian home resale gains reached their highest level in more than two decades during the December quarter, according to a fresh report from Cotality.
The 102,000 resales analysed in Cotality’s Pain & Gain report, 95.9% record a profit. This is a slight jump from the 95.6% recorded in the last quarter and the strongest result since 2005.
The median gain also reached a record A$365,000 while the median loss edged higher to $45,000.
Cotality's head of research, Gerard Burg, said these results come from gains that have been built over time and reflect the accumulation of value growth over recent years.
“Most sellers have held their property for close to a decade, so the results we’re seeing now are a product of sustained value growth rather than short-term market movements,” Burg said.
Properties with higher ownership periods were more likely to record a profit.
Properties that sold at a profit had a median hold period of 9.2 years, while those that recorded a loss had a median of 8.2 years.
“Shorter ownership periods remain the key risk factor for losses, particularly for those who purchased closer to recent market peaks,” Burg said.
“The longer a property is held, the more likely it is to absorb cyclical fluctuations and deliver a positive result.”
Across the country, 98.1% of houses recorded a profit compared to 91.2% of units.
Median gains for houses were $428,000, which is significantly higher than the $246,000 for units.
“The performance gap between houses and units has continued and widened over recent years, reflecting both stronger demand for detached housing and a more challenging supply dynamic in some apartment markets,” Burg said.
Burg said losses were most heavily concentrated in the unit sector, particularly across parts of Sydney and Melbourne, where increased supply has weighed on values.
“In a number of inner-city unit markets, predominantly in Sydney and Melbourne, this additional stock has benefited those trying to get into the market but limited price growth and increased the likelihood of resale losses,” he said.
Brisbane recorded the strongest profitability of any capital in the December quarter at 99.9% of resales, delivering a gain and a median profit of $500,000.
On the other hand, Melbourne had the lowest level of profitability at 91.5% with a median gain of $324,000.
Regional markets more broadly recorded a higher share of profitable resales than capital cities in the December quarter, at 97.6% compared with 94.9%.
However, capital cities continued to deliver stronger gains in dollar terms, with a median profit of $410,000 compared with $314,000 across regional areas.
“The regional markets are showing a higher consistency of profitability for sellers, but capital cities are still generating larger nominal gains,” Burg said.
Despite the elevated profitability at the end of last year, Burg warned that the outlook for 2026 looks more varied.
This is due to interest rates, an increase in listings in Sydney and Melbourne, and easing population growth, potentially weighing on housing demand in some areas.
“The drivers that supported strong profitability over recent years are starting to shift in some markets,” Burg said.
“With higher interest rates and more supply coming online, the likelihood of buyers achieving ongoing record resale gains this year will wholly be dependent on timing, location and property type.”
