Australian regional areas recorded the highest resale profitability rates in the final quarter, with 97.6% of property resales generating profits compared to 94.9% in capital cities. Despite this, the average profit in regional areas was lower, standing at $314,000 versus $410,000 in the cities, reflecting more moderate growth in regional property values.
The holding period remains a key factor in achieving profits, with profitable properties typically held for 9–10 years, while loss-making properties have a shorter average holding period of 4.1 years.
National data showed that 95.9% of property resales generated profits this year, marking the highest level since 2005. The average national profit reached $365,000, highlighting sustained growth driven by longer holding periods.
Regions such as Kiama, Noosa, and Byron were among the most profitable, recording average resale gains of $730,000, $705,000, and $655,000, respectively, supported by strong demand and limited supply.
In a comparison between regional areas and capital cities, the capitals posted higher nominal gains despite consistent profitability in regional markets. Brisbane emerged as the most profitable capital, with a 99.9% success rate and an average resale profit of $500,000.
The report forecast a potential decline in profitability during 2026 due to rising interest rates, increased housing supply in Sydney and Melbourne, and slower population growth. Achieving record gains will depend on timing, location, and property type.
