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Surge in profitability as 97% of regional resales record gains
Australian regions have surged in profitability last quarter, with the proportion of profit-making resales outdoing the combined capital cities, according to new Cotality data.
Cotality’s latest Pain and Gain report showed that 97.6 per cent of regional resales recorded a gain, compared with 94.9 per cent for capital cities.
Despite the strong result, the median gain for a regional resale was lower, at $314,000, compared with $410,000 for city markets, reflecting more modest growth in home values.
Nationwide, profitability reached a 20-year high, with 95.9 per cent of Australian property resales making a profit last quarter, the strongest result since 2005.
The data also found that the median gain hit a record $365,000, showing accumulated growth over long hold periods.
Cotality head of research, Gerard Burg, said time in the market had been a driving factor in the surge in profitability, with profit-making sales typically held for 9–10 years, while losses were shown in shorter hold periods, generally four years.
“Resale profitability remains very high, but these gains have been built over time,” Burg said.
“Most sellers have held their property for close to a decade, so the results we’re seeing now are a product of sustained value growth rather than short-term market movements.”
At a national level, there was a slight increase in the median hold period for resales in the last quarter, with profitable dwellings held for 9.2 years, up from 9.1 in September, while the median hold for a loss-making resale was 8.2 years.
The report also noted that for loss-making houses, the hold time was a much shorter hold time, with the median at 4.1 years in December, compared with 9.4 years for profit-making house resales
“Shorter ownership periods remain the key risk factor for losses, particularly for those who purchased closer to recent market peaks,” Burg said.
“The longer a property is held, the more likely it is to absorb cyclical fluctuations and deliver a positive result.”
The report also identified three regions that had been the most profitable, including Kiama, Noosa, and Byron, noting all three were lifestyle markets
Kiama was found to be the most profitable local government area (LGA) nationwide, with the region on NSW’s South Coast recording a median gain of $730,000.
Noosa on Queensland’s Sunshine Coast followed, showing a median profit-making sales result of $705,000, while Byron made sixth place, recording a $655,000 median gain.
“Markets that have seen a combination of strong buyer demand and limited supply over an extended period are the areas that delivered the highest resale gains at the end of 2025,” Burg said.
“That includes both lifestyle locations and cities like Brisbane and Perth, where housing values have risen rapidly in recent years on strong population growth and limited new supply.”
Cotality said that, when it came to comparing the regions and capitals, the type of property mattered, with houses showing little difference, and units having a bigger discrepancy.
The profitability of house resales in the regions was 97.5 per cent, with a median gain of $327,000, while that of capital city house resales was 98.4 per cent, with a median gain of $524,000.
In contrast, 97.2 per cent of regional unit resales recorded a profit in the December quarter, compared to 89.5 per cent for capital cities.
Regional unit resales recorded a median gain of $253,000, just above the capitals at $245,000.
“The regional markets are showing a higher consistency of profitability for sellers, but capital cities are still generating larger nominal gains,” Burg said.
Out of the combined capital cities, Cotality found Brisbane was the most profitable capital in the December quarter, with 99.9 per cent of dwelling resales making a profit.
Brisbane also recorded a median gain of $500,000, up from $447,500 in September, with Cotality noting the result was supported by a strong increase in home values over the past decade.
Burg said resale profitability remained elevated last year, but the 2026 outlook is becoming more varied across markets, with higher rates, rising listings in Sydney and Melbourne, and easing population growth expected to dampen demand.
He said that Cotality’s Home Value Index showed that recent value trends have been diverging, with stronger conditions in Perth and weaker performance in Sydney and Melbourne driving softer profitability.
“The drivers that supported strong profitability over recent years are starting to shift in some markets.”
“With higher interest rates and more supply coming online, the likelihood of buyers achieving ongoing record resale gains this year will wholly be dependent on timing, location and property type,” Burg concluded.