ResidentialLindsay SaundersTue 04 Aug 26
First Cracks Emerge in Australia’s Property Profit Boom
Australia’s long run of rising property resale profits is beginning to show signs of slowing, although homeowners continue to bank record gains as years of price growth underpin strong equity positions.
Domain’s latest Profit and Loss Report found 97.4 per cent of house resales generated a profit in the first half of 2026, down marginally from 97.5 per cent in the second half of 2025.
While the decline is slight, it marks the first indication that resale profitability may have peaked as housing market conditions soften across parts of the country.
Despite the easing, median profits reached record levels nationally, with house sellers making a median gain of $458,000 and unit sellers $237,000. Across the capital cities, the median house resale profit climbed to $558,000.
Sydney homeowners continued to record the country's largest gains, with a median profit of $739,500 on house resales.
However, Perth, Brisbane and Adelaide emerged as the strongest-performing markets for seller profitability, with almost every resale delivering a gain.
Perth posted the nation's highest share of profitable house resales, with 99.6 per cent of sellers making a profit, while Brisbane led the unit market, where 99.5 per cent of resales were profitable.
In contrast, Melbourne remained the weakest-performing capital for units. More than one in four apartment sellers (27 per cent) sold at a loss, the highest rate among Australia's major cities.
Melbourne also recorded one of the highest shares of loss-making house resales, alongside Canberra.
Portion of profit-making resales
Domain chief residential economist Dr Nicola Powell said the results highlighted an increasingly uneven housing market.
“This is the first sign that Australia’s long run of property profits is starting to ease, but it's far from a collapse in seller fortunes,” Powell said.
“Most homeowners are still making substantial gains, even as softer market conditions begin to affect resale outcomes.
“The divide is most evident in the unit market. More than one in four Melbourne unit sellers are now selling at a loss, while almost every Brisbane unit seller is making a profit.”
Powell said Perth, Brisbane and Adelaide continued to deliver strong outcomes for sellers, while Melbourne and Canberra were showing the clearest signs of weaker market conditions.
She said the record median profits demonstrated the wealth accumulated during recent years of strong housing price growth, even as market conditions became more fragmented across the country.
