Brett Warren , National Director – Metropole Group
Australia’s property market in early 2025 is holding its own – and then some.
According to the latest Cotality Pain and Gain Report, a stunning 94.9% of property resales turned a profit in the March quarter, matching the results from December and reaffirming that real estate continues to be a strong asset for Australian homeowners.
That figure is even more impressive when you consider the backdrop: rising cost-of-living pressures, changing migration trends, and shifting interest rates.
Though the national median profit dipped slightly from $310,000 to $305,000, that’s still a hefty gain for the majority of sellers.
The data also suggests resilience: the portion of loss-making sales shrunk slightly, with losses dropping from a median of $45,000 to $44,000. These figures may seem incremental, but they underscore a market that’s stabilising after a brief wobble in late 2024.
Houses, unsurprisingly, continue to outperform units. While 97.2% of house resales were profitable with a median gain of $355,000, unit resales followed with 90.1% profitability and a median gain of $205,000. Though the gap remains substantial, the unit market is showing signs of recovery – especially in places like Brisbane, where the difference between houses and units is starting to blur.
Regional markets like Noosa, Busselton, and the Sunshine Coast have seen profits more than double since 2020. These lifestyle havens, once considered offbeat, have become some of the country’s most lucrative resale areas. The appeal of open space, flexible work, and sea breezes continues to push demand – and prices – up.
In the cities, Brisbane is the star of the show, boasting a record-breaking 99.7% of profitable resales in the March quarter. The recovery of its unit sector is especially noteworthy: back in 2020, less than 60% of Brisbane units made a profit. Fast forward to now, and it’s nearly level with house resales. Median profits on houses hit $450,000, while units came in at $263,000 – a testament to both demand and improved buyer confidence.
There’s also a silver lining for places that have struggled. Sydney and Melbourne have seen a slight decline in profitability, driven largely by struggling unit markets. But even there, early signs of value growth hint at future improvements.
In short, the story of Q1 2025 is one of quiet strength. Amid a complex economic climate, Australian property owners are still coming out ahead – and for those eyeing the market, it is just be the reassurance they need.
