Strong resale outcomes reflect years of accumulated property value growth, according to Cotality’s latest research.
The share of Australian properties selling for a gain has risen to its highest proportion in more than 20 years, according to new research from property analytics firm Cotality, analysing housing resale profits during the December 2025 quarter.
Released on Wednesday (25 March), Cotality’s latest Pain & Gain Report found 95.9 per cent of resales recorded a profit, a slight increase from the figure observed during the previous quarter (95.6 per cent) and the strongest result seen since 2005.
Sellers made a median gain of $365,000, representing a 19.3 per cent increase on the previous corresponding period.
Meanwhile, the median loss edged slightly higher to $45,000.
Cotality compiled the report from analysis of 102,000 resales across the country.
Gerard Burg, Cotality’s head of research, said the strength in resale outcomes reflects years of accumulated value growth.
“Resale profitability remains very high, but these gains have been built over time,” he said.
“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.”
Performance gaps
Houses outperformed units in the report, with 98.1 per cent of house resales recording a profit nationally compared with 91.2 per cent of units.
Median gains were also higher for houses at $428,000 compared to $246,500 for units.
Burg noted losses in the unit sector, particularly in parts of Sydney and Melbourne where increased “supply has weighed on values”.
“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,” he said.
“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.”
Around the country
Brisbane led capital city profitability in the December quarter, with 99.9 per cent of resales delivering a gain and a median profit of $500,000, followed by Adelaide (99.4 per cent and $445,000) and Perth (98.6 per cent and $430,000).
Sydney recorded a median gain of $430,000, with 93.3 per cent of resales making a profit, while Melbourne had the lower profitability at 91.5 per cent at a median gain of $324,000.
Outside capitals, regional markets recorded a higher share of profitable resales than capitals (97.6 per cent versus 94.9 per cent), although capital cities saw larger nominal gains ($410,000 versus $314,000).
Coastal lifestyle markets also dominated, according to Cotality, with Kiama (NSW) and Noosa (Queensland) topping the list with median gains above $700,000.
“Markets with strong demand and limited supply – both lifestyle locations and cities like Brisbane and Perth – delivered the highest resale gains at the end of 2025,” Burg added.
Looking ahead
While resale profitability remained high at the end of 2025, the outlook for 2026 is becoming more mixed, according to Burg.
Rising interest rates, increased listings in Sydney and Melbourne, and slower population growth are all expected to weigh on demand.
“The factors that drove strong gains over recent years are shifting,” Burg said.
“With higher rates and more supply coming online, achieving record resale profits this year will depend on timing, location and property type.”
This latest research comes after data from the Australian Bureau of Statistics (ABS) showed total dwelling approvals fell 7.2 per cent in January to 14,564 (seasonally adjusted).
Approvals for apartments and town houses dropped 24.5 per cent to 4,393, while house approvals rose slightly by 1.1 per cent to 9,753.
Overall, the trend for total dwellings fell 0.1 per cent after a 0.4 per cent drop in December, pointing to a gradual softening in momentum.
Earlier this year, Cotality data show that national dwelling values rose 0.8 per cent in January 2026, surpassing December’s 0.6 per cent lift, with every capital city and regional area registering gains.
[Related: National house prices accelerate despite rate hike spectre]
