Australia’s property market continues to deliver solid gains for most sellers, although signs of weakness are starting to emerge. That’s after profits hit a new record in the June quarter, yet the number of owners selling at a loss also increased.
Cotality’s latest Pain & Gain Report analysed almost 97,000 resales nationwide. It found that 94.8% of transactions made a profit – down slightly from 95.0% in March but still well above the decade average of 91.5%. Despite this dip in profitability, national property resale profits in Australia reached record highs. Median gains rose to $315,000, while the median loss fell to $42,000.
In dollar terms, profits reached $36.6 billion for the quarter, up from $33.3 billion in March. Losses also grew, hitting $292 million. As always, outcomes depend heavily on location, property type and timing.
One of the clearest trends in the June quarter was the difference in house vs unit investment outcomes. Houses remain the stronger choice, with 97.2% of resales profitable compared to just 89.8% of units.
Although units made up 32% of all resale activity, they accounted for more than 63% of losses. Median profits highlight the gap – $366,500 for houses versus $210,000 for units.
Sydney and Melbourne unit markets were especially challenging, driving a large share of property resale losses in 2025. In the Melbourne City Council region, 47% of unit resales made a loss, while Parramatta units remain 7.6% below their 2017 peak. This illustrates how long some buyers may need to hold before seeing a return.
Part of the challenge for unit owners lies in market fundamentals. Oversupply in some inner-city areas has put downward pressure on values, while newer high-rise developments often struggle to maintain capital growth compared with established houses.
Units are also more exposed to investor-heavy markets, where demand can fluctuate with lending conditions and rental yields. Together, these factors explain why units are more commonly found among loss-making resales.
Regional markets outpaced the capitals for years, but that trend is now reversing.
In the June quarter, 96.4% of regional resales made a gain compared to 93.9% in the cities.
But the median profit was higher in the capitals: $346,000 versus $275,000.
This reflects the broader post-pandemic cycle. Regional prices jumped more than 60% after March 2020, while capital cities rose 39%. Now, it’s the cities that are regaining momentum.
Despite generally strong conditions, certain areas are still underperforming. Melbourne City Council remains the nation’s weakest market, with nearly half of all resales making a loss. Hobart also saw its loss-making rate climb to 7.2% in the quarter – the highest since 2016 – as values remain 10% below their 2022 peak.
In Sydney, Parramatta units accounted for a disproportionate share of losses, while some Melbourne suburbs such as Stonnington and Port Phillip also struggled. These examples show that even in a rising market, property resale losses in 2025 are concentrated in specific locations, particularly inner-city unit markets.
The report also reinforced a familiar point: the longer you hold, the better your chances of making a profit.
The median hold period was 8.7 years. Short-term resales of two to four years – the most common window at 15.3% of transactions – were riskier. In this group, 7.7% of properties sold at a loss, compared to 5.2% overall. The median gain was also lower, at $175,000.
In short, property works best as a long-term investment.
Perth and Darwin both showed signs of turnaround. Perth’s profitability lifted to 98% on the back of strong growth, while Darwin’s loss rate dropped from 25.8% to 20.6% as demand picked up.
These differences highlight why buyers must carefully consider house vs unit investment choices and the outlook for regional vs city property growth before committing to a purchase.. At the same time, the findings show that the right finance strategy can make all the difference, with choices around property type, location and timing shaping long-term outcomes.
Shore Financial helps clients navigate these choices with tailored advice and access to a wide panel of lenders, ensuring every move supports long-term success.
Thinking about your next property move? The right finance strategy can help you avoid loss-making decisions and set you up for long-term gains. At Shore Financial, we’ll guide you through your borrowing options, structure your loan effectively and give you the clarity to buy with confidence. Call us on 1300 416 700, email info@shorefinancial.com.au or fill in this online form.
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