The one Australian city where almost every home sold for a tidy profit – and the suburbs that weren’t so lucky

Brisbane has snatched the title of Australia’s most profitable property market, with forecasts the Queensland capital – plus Sydney and Adelaide – are hurtling toward record-breaking highs by mid‑2026.

Australia’s housing market saw around 86,000 homes change hands in the March quarter, with an average profit of $305,000 according to a new report. 

The latest Pain and Gain report from Cotality showed the average nominal gain for sellers was down marginally from $310,000 in the previous quarter – marking the first quarterly fall since March 2023.

In Brisbane, 99.7 per cent of sellers made a profi, putting it just ahead of Adelaide (98.9 per cent) and Perth (97.9 per cent) as the safest real estate investment cities. 

Darwin recorded the highest rate of of loss-making sales (26.2 per cent) followed by Melbourne (11.3 per cent) and Sydney (7.7 per cent). 

Cotality head of research Eliza Owen said the results reflect a housing market in transition, with the plateau in values during the interest rate rise cycle now being overtaken by a bull market following February and May rate cuts – which have already reignited demand and lifted values 1.3 per cent. 

‘Although profitability held steady in early 2025, we’re seeing clear signs of renewed momentum,’ she said.

‘With rate reductions now flowing through to buyer demand and value growth, we expect stronger resale returns in the months ahead.’

Sydney has now slipped to the third lowest amongst the capital cities with the bulk of losses stemming from units (pictured, a home in Sydney)

In Sydney, the suburbs where the largest proportion of homes sold for a loss included Ryde (26.5 per cent with median loss of $53,500), Parramatta (23.6 per cent with median loss of $45,000) and Strathfield (20.3 per cent with median loss of $68,000) while Burwood and Ku-ring-gai also sustained heavy losses. 

Melbourne suburbs that also sustained heavy losses included Merri-bek, Yarra and Boroondara with each contributing around two per cent of the national total. 

Notably, more than one in four unit resales that made a loss occurred in just four areas; Melbourne, Parramatta, Port Phillip, and Stonnington. 

The median loss was $44,000.

Regional Australia once again outperformed the capitals, with resale profits in Noosa, Busselton and the Sunshine Coast exceeding $400,000 in the March quarter.

Ms Owen said house resales continued to outperform units in the March quarter, with the median resale gain for houses 73 per cent higher than the $205,000 gain for units.

She attributed the relative underperformance of units to oversupply. 

‘Several large apartment markets that saw a building boom in the late 2010s have yet to recover materially,’ she said.

Australia’s housing market saw around 86,000 homes sell in the March quarter (stock image)

Australian home prices are forecast to continue to rise with record-high prices expected in Sydney, Brisbane and Adelaide by the end of the 2026 financial year, according to Domain. 

Meanwhile, Adelaide and Perth – standout performers over recent years – are set for slower positive growth as prices have reached a level where the number of potential buyers thins out significantly. 

National housing shortfall remained a key driver of price growth, with demand outpacing supply. 

New immigration figures released on Thursday showed the net arrivals level again exceeding government forecasts, and the government admitting its goal on new home construction was unlikely to be met.