Brett Warren , National Director – Metropole Group
The latest Cotality Pain & Gain report paints a fascinating picture of Australia’s property market – and if you’re a homebuyer or investor in Sydney, Melbourne or Brisbane, there’s plenty to unpack.
Let’s start with Brisbane. For the third consecutive quarter, it’s taken the crown as the most profitable capital city. A staggering 99.7% of resales made a gain, with a median profit of $400,000. That’s a signal of strong underlying demand and resilience.
For investors, Brisbane’s lifestyle appeal and infrastructure pipeline continue to make it a standout. For homebuyers, it’s a market where strategic buying still offers upside, especially in gentrifying suburbs.
Melbourne, on the other hand, is showing signs of recalibration. While 89.4% of resales were profitable, it also had one of the highest rates of loss-making sales among the capitals at 10.6%.
Much of this stems from unit resales in pockets that haven’t yet recovered peak values. But here’s the opportunity – with values stabilising and sentiment improving, buyers willing to hold for the medium term could benefit from a rebound. Investors should be selective and focus on scarcity, land value, and proven performance.
Sydney’s story is more nuanced. Yes, 92.3% of resales made a gain, with a solid median profit of $381,000. But it also saw 7.7% of sales incur a loss, again concentrated in the unit market.
Interestingly, some sellers are choosing to cut their losses now that conditions are improving. For savvy buyers, this presents a rare chance to enter prestige or tightly held areas at a discount. Think long-term fundamentals such as proximity to transport, lifestyle precincts, and school zones.
Across all three cities, the trend is clear – houses continue to outperform units and hold periods matter. Short-term flips are risky, but long-term holds are paying off handsomely.
So, what’s the takeaway? Whether you’re buying your first home or expanding your portfolio, the current market offers strategic entry points. The key is understanding suburb-level dynamics, buying below intrinsic value, and holding through market cycles.
