But slight dip in home values impacts overall gains
Australian homeowners are achieving record profits when selling their properties, with the average gain reaching $306,000, the latest CoreLogic Pain & Gain report has revealed. However, some areas present more challenges for sellers than others.
The report, which analyses profit and loss trends in the housing market, found that 94.8% of property sales in the December quarter resulted in a profit. This marks the highest median nominal gain since CoreLogic began tracking resale data in the mid-1990s.
Despite the record-high profits, the proportion of sellers making a gain declined slightly from 95.1% in the previous quarter. This dip reflects a minor decrease in home values at the end of 2024, following a prolonged period of interest rate increases.
Separate data from the Real Estate Institute of Australia (REIA), however, points to longer-term growth in property values. The latest Real Estate Market Facts report shows that the national median house price reached $1,058,442.
Adelaide posted the strongest quarterly growth at 5.3%, followed by Perth at 2.8%. Sydney remained the most expensive market, with a median house price of $1,645,444 — 55.5% above the national median. In contrast, Darwin was the most affordable capital city, with a median price of $546,200, which is 48.4% below the national median.
Among capital cities, Brisbane recorded the highest percentage of profit-making sales, according to the CoreLogic report, with 99.1% of properties selling above their previous purchase price. Adelaide followed closely, with Sydney, Melbourne, Hobart, and Canberra also recording strong profit rates.
In contrast, Darwin and regional Northern Territory had the highest proportion of loss-making sales. Melbourne’s inner-city unit market saw the most losses, with 734 units selling at a loss during the quarter. In Sydney, Parramatta recorded 256 loss-making unit sales, followed by 163 in Ryde. These unit sales accounted for nearly 20% of all loss-making transactions nationwide. Houses remained a safer investment, with only 3% selling for less than their purchase price.
Total resale profits for the quarter reached $35.6 billion, up from $35 billion in the previous period. Meanwhile, the median loss on unprofitable sales rose to $45,000, an increase of $5,000 from the prior quarter.
“Given the strong relationship between capital growth and the rate of profitability and expected further easing in the cash rate this year, the rate of profitability from home re-sales will likely recover in 2025,” said Eliza Owen (pictured above), head of research at CoreLogic.
The report also found that homeowners who incurred losses typically owned their properties for shorter periods. The average holding time for profitable sales was 9.3 years, compared to 7.6 years for loss-making transactions.
The data was based on 95,300 property sales recorded during the three-month period ending in December.
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