Where home sellers made the biggest profits
Nearly every home seller is walking away with a profit. According to Cotality's latest Pain & Gain report, 95.9% of property resales delivered a gain in the December quarter - the highest level in more than 20 years.
Of course, these gains didn't happen overnight, but were built up over many years.
"Most sellers have held their property for close to a decade, so the results we're seeing now are a product of sustained value growth rather than short-term market movements," explained Cotality Head of Research, Gerard Burg.
Interestingly, houses that sold at a loss were held for a much shorter period than those that sold for a profit, with a median holding period of 4.1 years compared with 9.4 years. For units, however, the median holding period was much the same - 8.9 years for a loss and 9 years for a gain.
Location, location, location
The old property saying about location, location, location still seems to hold up. While the median profit hit a record $365,000, some areas delivered much stronger gains than others.
"Markets that have seen a combination of strong buyer demand and limited supply over an extended period are the areas that delivered the highest resale gains at the end of 2025," Mr Burg said. "That includes both lifestyle locations and cities like Brisbane and Perth, where housing values have risen rapidly in recent years on strong population growth and limited new supply."
The markets where sellers made the biggest profits
With a nominal gain of $730,000, the sea-change region of Kiama on the NSW south coast was the most profitable local government area (LGA) in the December 2025 quarter. Close behind was Noosa on Queensland's Sunshine Coast - also a lifestyle market - with a median gain of $705,000.
These weren't isolated results. Other lifestyle markets to feature among the top-performing locations included Byron and Queenscliffe LGAs in NSW and Victoria respectively.
Top 10 LGA markets by highest median nominal gain
|
LGA Name |
Capital City/Region |
Median profit-making sales result |
Median hold period of profit-making sales |
|
Kiama |
Rest of NSW |
$730,000 |
10.0 |
|
Noosa |
Rest of Qld |
$705,000 |
9.0 |
|
Joondalup |
Greater Perth |
$695,000 |
11.3 |
|
The Hills |
Greater Sydney |
$666,555 |
8 |
|
Melville |
Greater Perth |
$660,000 |
10.2 |
|
Byron |
Rest of NSW |
$655,000 |
10.3 |
|
Adelaide Hills |
Greater Adelaide |
$650,000 |
10.7 |
|
Mitcham |
Greater Adelaide |
$623,500 |
10.3 |
|
Claremont |
Greater Perth |
$613,000 |
9.4 |
|
Queenscliffe |
Rest of Vic. |
$611,000 |
15.2 |
Source: Cotality's Pain & Gain report, December 2025 quarter
Several LGAs within Perth made the cut, with Joondalup, Melville and Claremont all recording median gains of more than $600,000.
Looking ahead
Despite strong results in 2025, the outlook for 2026 is becoming more uneven, with profitability likely to become more challenging.
This is thanks to factors such as rising rates, an increase in listings in Sydney and Melbourne and easing population growth.
Burg said higher interest rates and rising supply could make record resale gains harder to repeat in 2026. That means where you buy, what you buy and when you sell may matter more than ever.
Frequently Asked Questions about this Article…
According to Cotality’s Pain & Gain report for the December 2025 quarter, 95.9% of property resales delivered a gain — the highest level in more than 20 years.
The report found a record median profit of $365,000 on property resales in the December 2025 quarter.
Most profit-making sellers have held their property close to a decade. For houses, the median holding period for profitable sales was about 9.4 years (versus 4.1 years for houses sold at a loss). For units, median holding periods were similar: about 9.0 years for gains and 8.9 years for losses.
The top local government areas by median nominal gain in the December 2025 quarter were: Kiama ($730,000), Noosa ($705,000), Joondalup ($695,000), The Hills ($666,555), Melville ($660,000), Byron ($655,000), Adelaide Hills ($650,000), Mitcham ($623,500), Claremont ($613,000) and Queenscliffe ($611,000).
Cotality’s research notes that markets with a combination of strong buyer demand and limited supply over an extended period — including lifestyle spots and growing cities such as parts of Brisbane and Perth — produced the highest resale gains.
Yes. Several Perth LGAs made the top list: Joondalup ($695,000 median gain), Melville ($660,000) and Claremont ($613,000), showing Perth suburbs were among the strong performers.
Yes — the data shows houses sold at a loss tended to have much shorter holding periods (median 4.1 years) compared with houses sold for a profit (median 9.4 years). For units the difference was minimal, with losses at a median 8.9 years and gains at about 9.0 years.
Cotality warns the 2026 outlook is more uneven. Rising interest rates, increased listings in Sydney and Melbourne and easing population growth mean record resale gains could be harder to repeat. That highlights the importance of where you buy, what you buy and when you sell.
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