Australian property market profitability trends in December 2025 quarter with regional and dwelling-type variations
Consensus Summary
The Australian property market in the December 2025 quarter saw the highest profitability since 2005, with 95.9% of sales generating a profit and a record median gain of $365,000. Longer hold periodsâ9.2 years for profitable sales versus 8.2 years for lossesâhighlighted the importance of patience in smoothing out market cycles. While smaller capitals like Brisbane, Perth, and Adelaide dominated profitability, Sydney and Melbourne lagged slightly, with 93.3% and 91.5% profitable sales respectively. Houses consistently outperformed units, with 98.1% of houses profitable nationally, but high-density areas such as Melbourneâs City of Melbourne (45.9% losses) and Sydneyâs Parramatta (23.9% losses) faced significant challenges due to oversupply and stagnant values. Experts attributed these losses to rapid apartment construction over the past decade, which suppressed unit prices since 2017. Gerard Burg and Angie Zigomanis also warned that global uncertainty and interest rate pressures could dampen future market performance, though they cautioned against overreacting to short-term fluctuations. The data underscored regional disparities, with investor behavior in Melbourne contrasting sharply with Sydneyâs owner-occupied unit market, where affordability pressures are driving demand.
â Verified by 2+ sources
Key details reported by multiple sources:
- 95.9% of Australian properties sold in the December 2025 quarter made a profit, up from 95.6% in the September quarter, the highest since March 2005 (Cotality Pain and Gain Report)
- The median profit gain for sold properties in December 2025 was a record $365,000
- Properties sold at a profit had a median hold time of 9.2 years, while those sold at a loss had a median hold time of 8.2 years
- In Melbourne, the median hold time for a loss was 4 years compared to 11 years for a profit; in Sydney, 6.9 years for a loss vs 11 years for a profit
- Nationally, 98.1% of houses recorded a profit compared to 92.1% of units
- Brisbane, Perth, and Adelaide had about 99% profitability for all property sales, while Sydney recorded 93.3% and Melbourne 91.5%
- The City of Melbourne had 45.9% of unit sales at a loss, with Stonnington and Port Phillip also exceeding 25% loss-making sales
- In Sydney, Parramatta had 23.9% loss-making sales, Ryde and Strathfield over 20%, and the City of Sydney at 11.1%
- Gerard Burg (Cotality) stated that rapid apartment construction in high-density areas like the City of Melbourne and Parramatta contributed to declining unit values since 2017
- Angie Zigomanis (Quantify Strategic Insights) noted that Melbourneâs unit market is dominated by investors, while Sydneyâs is increasingly owner-occupied due to house price pressures
Points of Difference
Details reported by only one source:
- Gerard Burg emphasized that Melbourneâs lower profitability (91.5%) reflects the state governmentâs efforts to increase housing supply and encourage homeownership
- Burg mentioned that the median value of units in the City of Melbourne peaked in June 2017 and has since declined
- Zigomanis highlighted that investors in Melbourne may cut losses after five years of no capital growth, impacting unit profitability
Contradictions
Conflicting information between sources:
- No contradictions found between the two sources
Source Articles
Suburbs where property owners are selling at a loss
Home sellers have a high chance of making a profit, but in some neighbourhoods profitability is far from guaranteed....
Suburbs where property owners are selling at a loss
Home sellers have a high chance of making a profit, but in some neighbourhoods profitability is far from guaranteed....