Canberra owners second only to Sydney in making a profit from their houses
Australia’s property market continues to cement its reputation as a wealth-building avenue, with Domain’s Profit and Loss Report highlighting a significant surge in profit-making sales across the nation.
According to the report, residential properties have reached their highest profit-making levels since 2008 for houses and 2011 for units.
Nationally, 96 per cent of houses and 90.7 per cent of units resold for a profit in FY24.
In Canberra, the figures were slightly lower for houses, with 94 per cent resold for a profit and slightly higher for units at 94.4 per cent.
“As Australia grapples with record pricing, it is unsurprising that the pool of profit-making sales has risen, as the likelihood of profitability increases as prices rise,” said Dr Nicola Powell, Domain’s chief of research and economics.
The median profit is substantial but varies widely across all capital cities and regional Australia.
For houses, Sydney, Canberra and Melbourne – our most expensive cities – lead dollar gains, with profits of $655,000, $435,000 and $397,000, respectively.
| Location | Houses | Units | ||||||
| $ gain | % gain | $ loss | % loss | $ gain | % gain | $ loss | % loss | |
| Australia | $326,000 | 79.5% | -$60,000 | -9.7% | $171,000 | 40.8% | -$45,000 | -8.3% |
| Combined capitals | $395,000 | 84.0% | -$73,000 | -9.4% | $163,000 | 37.0% | -$45,000 | -8.0% |
| Combined regionals | $245,000 | 74.2% | -$49,500 | -11.8% | $196,000 | 57.4% | -$64,000 | -16.8% |
| Sydney | $655,000 | 100.8% | -$125,000 | -9.6% | $202,000 | 34.5% | -$45,770 | -6.9% |
| Melbourne | $397,000 | 78.6% | -$50,000 | -5.7% | $140,000 | 33.9% | -$42,000 | -8.3% |
| Brisbane | $395,000 | 92.9% | -$60,000 | -6.6% | $155,000 | 38.8% | -$37,000 | -7.4% |
| Adelaide | $351,000 | 96.2% | -$65,000 | -10.2% | $175,000 | 59.7% | -$56,990 | -13.4% |
| Perth | $231,000 | 55.0% | -$55,000 | -10.1% | $100,000 | 33.3% | -$32,500 | -8.1% |
| Canberra | $435,000 | 84.3% | -$89,000 | -9.2% | $150,000 | 35.0% | -$49,200 | -8.3% |
| Hobart | $282,000 | 78.3% | -$50,000 | -7.4% | $198,000 | 59.1% | -$60,000 | -10.3% |
| Darwin | $235,000 | 69.1% | -$55,000 | -9.4% | $85,000 | 31.4% | -$83,000 | -18.6% |
Powell said the remarkable profits “indicate how valuable it is for Australians to get into the property market if they can”.
“We need to ensure that buying a home is affordable and accessible to everyone, as having an asset that increases in value can really help financial stability in the future,” she said.
The report also highlights a significant shift in the property market dynamics, with regional areas outperforming urban centres in terms of profitability.
Generation X and older Millennials have been identified as the primary beneficiaries of the current market conditions.
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