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93% of sales made a profit – but where did investors win big?
Despite softer investor activity, most resales remained profitable, with Brisbane delivering the strongest results nationwide.
According to the PropTrack-Terri Scheer Investor Report 2026, 93 per cent of investors made a profit in the three months to the end of July, despite challenging market conditions.
The data showed that, among the capitals, Brisbane led in profitable resales and median profit, with 99 per cent of properties returning $520,000.
Similarly, the other mid-sized capitals, Adelaide and Perth, achieved similar results, with periods of rapid growth supporting their property markets.
REA Group senior economist Angus Moore said the high overall share of returns reflected strong price growth in recent years.
“That’s most starkly reflected when looking at the geographic differences in recent resale profitability – effectively, all recent investor sales in Brisbane, Perth and Adelaide have been profitable, reflecting the enormous growth in home prices those cities have seen in the past six years,” Moore said.
Conversely, Melbourne saw the lowest share of profitable resales, with just 85 per cent achieving a gain.
Geographic split between assets
For houses, the strongest growth returns were typically concentrated in the capital cities’ outer regions, such as Sydney’s south-west, Ipswich to Brisbane’s south-west and Melbourne’s north-west.
According to the report, North Richmond in Sydney’s outer south-west and Two Rocks in Perth’s south-east saw the largest annual median growth, with values climbing by more than 32 per cent.
Moore said that, unlike houses, units closer to city centres typically performed better.
“Inner-city rental markets are also popular with investors. Given these are large rental markets with substantial demand from renters – and the highest concentration of renters – this interest from investors is unsurprising.”
In the unit market, Flemington in Melbourne’s inner suburbs saw the highest median growth at 41 per cent, with Perth’s Jolimont following closely behind at 39 per cent.
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Investor loans decreased by 9 per cent, with many shifting their priorities or removing themselves from the market altogether.
What the pullback means for investors
Terri Scheer executive manager Carolyn Parrella said that despite the drop in lending, residential property could still play a role as a long-term investment.
“The findings show investors aren’t necessarily leaving the market; they’re adapting to it,” Parrella said.
“While Australia’s property market is evolving, this report shows there are still compelling opportunities for investors who focus on strong fundamentals.”
Although overall investor loans declined, the data showed that volume targeted toward new builds surged by 24 per cent.
Moore said the changes to property tax settings had prompted investors to switch lanes.
“Over the long term, the budget changes may lead to a shift in investor demand, as investors look towards properties with higher yields,” Moore said.
“Low-yielding and loss-making rental properties are likely to become less attractive to investors, as negative gearing will no longer be available for existing residential properties.”
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