Record property profits push housing further out of reach for first home buyers
- New Domain report shows more than 90% of resales in every Australian capital turned a profit.
- Record equity gains are helping existing owners upgrade but pushing first home buyers further behind.
- Economists warn family wealth is increasingly determining who can enter the housing market.
Domain’s latest Profit and Loss Report published on Thursday revealed more than 90% of house resales in every capital city turned a profit for the first time in 15 years.
Nationally, 97.5% of house resales delivered gains, alongside 88.3% of units in the second half of 2025.
Median resale profits hit new records across several capitals, with Sydney leading the pack for houses with $750,000 median gain and Brisbane posting the biggest median profit gain for units at $325,000.
Adelaide ($539,500 for houses; $290,000 for units) and Perth ($528,000 for houses; $226,050 for units) also posted all-time highs.
Sydney’s annual median profits rose 11.1%. The report found in the city’s Eastern Suburbs, the typical house seller pocketed a $2.77 million profit.
Domain Chief of Research and Economics Dr Nicola Powell said long holding periods mean homeowners have built up substantial equity buffers, as is the case in Sydney.
“As homeowners stay put for longer, they are seeing their equity build up over multiple price cycles,” Dr Powell said.
“This widespread profitability has given many Australians a strong financial safety net and access to continue to ‘climb the ladder’, while providing a buffer against pressures such as rising interest rates and inflation.”
Middle-ring suburbs join the boom
Domain found near-universal profits in middle-ring family areas that traditionally sit below prestige price points, suggesting the noted equity surge isn’t confined to premium postcodes.
Brisbane and Perth recorded the strongest momentum, each reporting 99.5% of profit-making house resales.
Median profits were also up by 22.9% in Brisbane and 25.7% in Perth over the year.
Adelaide followed closely with 98.2% of house resales making a profit and median profits up 15.5% annually.
According to Dr Powell, the record profits across these mid-sized capitals reflect “the steady growth and equity accumulation” seen in these cities since 2021, further supported by “strong migration flows and constrained supply”.
But not all capitals kept up
On the flipside, Melbourne, Canberra, Hobart, and Darwin lagged the national trend.
While the Domain report shows profitability remains high, median gains are now lower than they were four years ago.
Canberra was the only capital city to record an annual decline in the share of profit-making resales, reflecting softer price growth.
Equity boom deepens the generational divide
While existing owners are seeing major financial windfalls, the very same surge is making it more difficult for first home buyers to get their foot on the property ladder.
“The sheer size of these profits is creating a wider gap between established owners and those attempting to enter the market, making it increasingly difficult for younger Australians to buy property without the support of intergenerational wealth,” Dr Powell said.
Dr Powell admitted the barrier to entry is now increasingly being defined by existing family equity rather than individual savings alone.
See also: Saving For A House Deposit Calculator
For instance, to buy the average Sydney house in 2026, an aspiring homeowner needs to save a $319,800 deposit to avoid paying lenders mortgage insurance (LMI).
If they plan to be a home owner in Brisbane, they need to save $230,000, which is 20% of an average house value in the Queensland capital.
Buying a home or looking to refinance? The table below features home loans with some of the lowest interest rates on the market for owner occupiers.
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