Australia’s extraordinary run of rising property profits is starting to lose momentum, giving way to a stark multi-speed market where record equity gains in Sydney and mid-tier capital cities contrast sharply with worsening pain in southern apartment sectors.
According to Domain’s latest Profit and Loss Report for the first half of 2026, the national share of profit-making house resales slipped to 97.4%, down slightly from 97.5% in the second half of 2025.
While this marginal drop suggests the long run of resale profitability may be coming to an end, it mirrors a broader turn in the housing cycle as combined capital city house and unit prices recorded their first quarterly decline in more than three years.
Yet behind this slight national shift lies a dramatic divergence in market performance across Australian capitals and asset classes.
Despite softer conditions, Australia’s equity dividend continues to run deep from years of accumulated capital growth, pushing median resale profits to fresh record highs of $458,000 for houses and $237,000 for units nationally, while across all capital cities combined, median profits reached $558,000 for houses.
Sydney recorded the nation’s largest resale gains, with the median house seller making a profit of $739,500.
At the same time, Perth, Brisbane, and Adelaide are emerging as the strongest markets for seller profitability, with almost every resale generating a gain.
Perth recorded the highest share of profitable house sales, with 99.6% of sellers making money on their sale, while Brisbane led the unit market, where 99.5% of resales returned a profit.
By contrast, Melbourne remained the weakest capital city market for units, where more than one in four sellers (27.0%) sold at a loss – the highest rate among Australia’s major cities – while also recording one of the highest rates of loss-making house sales alongside Canberra.
Domain Chief Residential Economist Dr Nicola Powell emphasised that these results point to a housing market that is becoming increasingly fragmented.
“This is the first sign that Australia’s long run of property profits is starting to ease, but it’s far from a collapse in seller fortunes. Most homeowners are still making substantial gains, even as softer market conditions begin to affect resale outcomes,” Dr Powell said.
“The divide is most evident in the unit market. More than one in four Melbourne unit sellers are now selling at a loss, while almost every Brisbane unit seller is making a profit. Perth, Brisbane and Adelaide continue to deliver strong results for sellers, while Melbourne and Canberra are showing the clearest signs of weaker market conditions.
“Even so, it’s important to keep these results in perspective. Most sellers are still making significant gains, with record median profits highlighting the strength of the wealth accumulated over recent years.”