Australia’s property market has maintained solid sales results into the early stages of 2025, with 94.9 % of property sellers lining their pockets with a profit in the March quarter, according to the latest Pain and Gain report by CoreLogic. Although the median profit figure dropped a little to 305,000 dollars from 310,000 dollars in the December quarter, well above the 23-year average, total gross profits were a robust 31.7 billion dollars.
This consistent performance comes as interest rate cuts in February and May have begun to lift financial pressure and rekindle buyer interest. The outcome is a 1.3 % lift in home values over the three months to May, which bodes well for conditions going forward.
Units Continue To Struggle As Houses Hold Their Own
Houses continue to sell well in the resale market. An impressive 97.2 % of house resales made a profit against 90.1 % of unit sales. The average profit made from reselling houses was 355,000 dollars, more than the 205,000 dollars profit reaped from unit sales, it found.
Units still represent the lion’s share of money-losing sales. More than 62 % of losses were units, reinforcing difficult selling conditions in high-density locations, including Melbourne, Parramatta, Port Phillip and Stonnington. The areas have had little price growth over the last ten years because they have been oversupplied, and demand was low.
That being said, the real median losses were relatively the same across the board. The median loss was 45,000 dollars for houses and 44,000 dollars for units.
Short-Term Resales on the Rise
The national average holding period for a property is still 8.8 years, yet short-term resales are on the rise. Properties that were held for two to four years accounted for 15.6 % of total transactions. The decrease is a possible result of the expiration of some loans with fixed interest rates and owners settling into altered financial possibilities.
Regional Markets Continue to Outperform
Regional Australia again outpaced the capital cities, with 96.5 % of resales making a profit, compared with 93.9 % in metro areas. The rustication movement has benefited from long-term capital growth and strong demand during the pandemic to continue buoying the strength of regional lifestyle markets. Resale properties in places like Noosa, Busselton and the Sunshine Coast saw an average profit of more than 400,000 dollars.
City Performance Highlights
Brisbane led by nation, with 99.7 % of resales achieving a profit.
Adelaide came second at 98.9 % while it also registered the highest median resale gain of all capital cities.
Perth notched a healthy 97.9 % profit rate.
Melbourne and Darwin had the most losses on resales at 11.3 % and 26.2 % respectively.
Looking Ahead
Thanks to buyer confidence returning and lower interest rates, Australia’s property market is starting to gain new momentum. By tracking trends around property type, location, and holding period, sellers and investors can stay ahead of the market and optimise returns as the environment evolves.
At Huddle Property, we enable you to make educated decisions by providing expert knowledge, bespoke advice and the latest market information. Whether you’re on the hunt for your first home, downsizing, or investing, our team will work with you to gain an understanding of your needs, tailor an approach that is more specific to you, and provide a FREE, no-obligation market analysis. To book your free consultation https://huddleforproperty.com.au/or book direct through Calendly. Alternatively, please ring us on +61 4807 58738 to chat to our team. With Huddle for Property on your side, it’s not just real estate, it’s smarter property decisions.
