Australian property owners have never had it so good when it comes to reselling their homes, with the median profit on resales hitting a record $377,000 in the final quarter of 2024, according to CoreLogic's latest Pain and Gain Report. The report, released on Monday, revealed that 94.5% of all property resales during the quarter were profitable, up from 93.8% in the previous quarter.
Record Profits Across the Country
The national median profit on resales surged by 19.4% year-on-year, from $316,000 in the December quarter of 2023. CoreLogic head of research Eliza Owen said the strong performance was driven by a combination of rising home values and tight supply. "The resilience of the Australian housing market continues to deliver substantial gains for sellers, particularly in the detached housing segment," she said.
Houses outperformed units, with a median profit of $445,000 compared to $215,000 for units. The proportion of loss-making sales for houses fell to just 3.2%, while for units it was 8.9%. Regional areas also saw strong gains, with the median profit in regional Australia reaching $295,000, up from $245,000 a year earlier.
Capital City Performance
Sydney recorded the highest median profit among capital cities at $585,000, followed by Melbourne at $435,000 and Brisbane at $395,000. Perth saw a median profit of $340,000, while Adelaide recorded $330,000. Canberra's median profit was $325,000, Hobart $290,000, and Darwin $210,000. The report noted that all capital cities except Hobart and Darwin saw an increase in the proportion of profitable resales.
"The gap between the best and worst performing markets has narrowed, but Sydney and Melbourne continue to dominate in absolute dollar terms due to their higher property values," Owen added.
Loss-Making Sales Decline
The proportion of loss-making sales fell to 5.5% nationally, the lowest level since the series began in 2014. Loss-making sales were most common in the unit market, particularly in Melbourne's inner-city areas and parts of the Gold Coast. The median loss on resales was $47,000, down from $52,000 in the September quarter.
Owen said the outlook for resale profits remained positive, although the pace of capital gains may moderate. "Interest rate cuts expected later this year could further boost demand, but affordability constraints and increased supply may temper the rate of growth," she said.
Regional Variations
Regional NSW recorded the highest median profit among regional areas at $365,000, followed by regional Queensland at $295,000 and regional Victoria at $245,000. Regional South Australia saw a median profit of $210,000, while regional Western Australia recorded $195,000. The report highlighted that mining regions in Western Australia and Queensland have seen a resurgence in profitable resales due to strong commodity prices and population growth.
"The resources sector has provided a boost to some regional markets, but overall, the trend is broad-based across most regions," Owen said.
Implications for Homeowners and Buyers
For homeowners, the record profits provide a strong incentive to sell, particularly those who have held properties for a long time. However, for first-home buyers, the high prices and limited supply continue to pose challenges. The report noted that the median holding period for profitable resales was 9.1 years, while for loss-making sales it was just 4.3 years, underscoring the importance of long-term ownership.
"The data reinforces the benefits of holding property over the long term, as short-term speculation carries higher risk," Owen said.
The Pain and Gain Report is based on analysis of property resales using CoreLogic's extensive database of property transactions. The full report is available on CoreLogic's website.
