- Australia's long run of profitable home sales has taken its first stumble
- Profitable resales of houses slipped slightly during the first half of 2026
- National unit profitability held steady although some capital city markets saw significant falls
Profit-making resales of houses and units eased slightly - an early signal the extended run of housing profitability may have reached its peak, according to Domain's bi-annual profit and loss report.
Australia-wide, 97.4% of house resales generated a profit for sellers, down 0.1% from the second half of 2025.
Unit profitability held steady at a lower 88.6%.
Source: Domain
Domain said while the shift may be small, its significance lies in what it signals.
"Resale profitability is typically a lagging indicator of housing market conditions, following movements in prices with a delay," the report said.
The easing in house profitability mirrors the current housing market downturn, with combined capital city house and unit prices recording their first quarterly decline in more than three years in the June quarter.
See also: Mortgage demand plunges, first homebuyers hardest hit
Gains still substantial
However, median resale amounts still reached record levels in the first half of 2026.
Houses reaped $458,000 while units saw a median profit of $237,000 nationally, reflecting years of accumulated capital growth.
Loss-making resales remained relatively rare, accounting for 2.6% of house sales although the median loss widened to $75,000.
For units, 11.4% of resales resulted in a loss, with the median easing slightly to $45,000 from the record $49,000 recorded at the end of 2025.
Brisbane leads profitability
Brisbane was the frontrunner on profitable home sales, with 99.5% of both house and unit sales generating a gain.
Brisbane also led the country in terms of unit resale profitability, with record median gains across both market sectors.
In terms of houses, Perth recorded the highest share of profitable resales at 99.6%.
Despite being harder hit by the property market downturn than mid-sized capital cities, Sydney still saw the largest median house resale profit of $739,500.
Continuing to defy the property downcycle, Darwin recorded its highest share of profitable house resales since 2010, overtaking both Sydney and Melbourne to rank fourth nationally.
Brisbane, Perth, and Adelaide set new record median profit amounts, joined by regional Queensland, regional New South Wales, and regional Western Australia.
Regional South Australia and regional Tasmania saw record median house resale profits but they were not matched by unit profits.
Overall, combined regional markets continued to outperform combined capital cities across both houses and units.
Over the first half of 2026, 97.6% of regional house resales and 96.9% of regional unit resales generated a profit.
Stronger price growth, longer holding periods, and tighter supply supported the figures, the report said.
Some losers too
But the story was very different in some city markets.
Sydney and Melbourne houses, along with Melbourne, Canberra, and Hobart units all recorded a jump in loss-making resales compared to the previous six-month period.
Melbourne remained the weakest capital city for units with 27% of unit resales seeing a loss - Canberra followed with 17.2%.
Melbourne and Canberra also recorded the highest share of loss-making house resales nationally with 5.7% of transactions selling for below their purchase price.
Domain said the growing prevalence of losses in select markets is further evidence the housing cycle has shifted.
"[While] the vast majority of home owners continue to realise gains when they sell, the distribution of those gains is becoming increasingly uneven, highlighting a housing market transitioning from a broad-based expansion to a more fragmented phase of the cycle," the report said.
Cracks appearing
Just as Sydney and Melbourne lead home price downturns, they are also leading the next phase of the profitability cycle.
The report forecasts loss-making sales will gradually become more common even as the overwhelming majority of transactions continue to generate a gain.
Where losses occur, the financial impact can be significant, the report found.
Ironically, new record losses were recorded in the two strongest-performing markets - Perth and Brisbane - where loss-making sales accounted for less than 0.5% of transactions.
According to Domain, this highlights an important feature of the current market: loss frequency and loss severity are not always aligned.
While losses still remain relatively rare, those selling at the wrong point in the cycle can still face substantial financial setbacks, the report warned.
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