Property owners selling outside the capital cities continue to achieve exceptionally high rates of profitable resale, despite a slight weakening in the national result. Domain’s Profit and Loss report shows regional markets are proving comparatively resilient, with a greater proportion of vendors making money on resale than their metropolitan counterparts. The figures reinforce the strength that has developed across many non-capital markets and demonstrate that profitability remains widespread even as broader property conditions become more uneven
Nationally, the percentage of resales generating a profit declined by 0.1% during the quarter. That movement was small, but it points to a modest softening in the overall result. Regional markets, however, remained largely protected from that downturn. Across Regional Australia, 97.6% of property resales produced a profit, compared with 97.3% across the capital cities
The difference between those percentages may appear narrow, but the consistently high level of profitable transactions in regional areas is notable. Domain chief residential economist Nicola Powell says regional profitability is outperforming the capitals across both houses and units. This means the regional advantage is not confined to one dwelling category and is being reflected across different sections of the residential market
There are nevertheless substantial differences between individual states and territories. Queensland leads the regional house market, with 98.4% of sales delivering a profit. Regional New South Wales follows at 97.5%, while Tasmania records 97.2%. South Australia stands at 96.7% and Victoria at 96.3%
Regional Western Australia has a profitable house resale rate of 95.2%, which remains extremely high despite sitting below the other major states. The Northern Territory is the clear outlier, with 78.4% of house sales producing a profit. Although that still represents a majority of transactions, the result is significantly below those recorded in other regional jurisdictions
The strength of the regional market can also be seen in the size of the gains being achieved. Record median profits were reported in the house and unit markets of Regional New South Wales, Queensland and South Australia. That indicates owners in those locations have not merely been achieving a high probability of selling above their purchase price; median dollar profits have also reached new records
Other markets have reached records in specific property categories. The Regional Western Australia house market recorded a new median profit high, while Tasmania’s regional unit market also achieved a record. Together, these results show that strong resale outcomes are geographically widespread, even though the exact performance of houses and units differs between jurisdictions
The data is particularly relevant in a market where national profitability has begun to edge lower. A 0.1% decline in the national proportion of profitable resales is not dramatic in itself, but it creates a contrast with regional areas where profit-making sales remain close to universal in several markets. Queensland’s 98.4% result, for example, means only a very small proportion of regional house transactions are being resold at a loss
Holding periods are an important part of understanding property resale performance. Powell says the results provide a reminder that real estate should be viewed as a long-term proposition rather than through the lens of short-term market movements. Property values can fluctuate, and owners who have held assets for longer periods may be better positioned to absorb temporary market weakness than those who need to sell relatively soon after purchasing
Domain’s analysis also provides insight into the circumstances surrounding loss-making transactions. According to Powell, most sellers disposing of property at a loss fall into two broad groups. The first consists of investors who are prepared to accept a loss and use it as a tax write-off. Their decision may therefore form part of a wider investment or taxation strategy rather than being driven solely by the immediate resale result
The second group involves owners selling because they are under financial pressure. These vendors may have less freedom to wait for more favourable conditions and can consequently be forced to accept a price below what they originally paid. That distinction matters because a loss-making sale does not always indicate that the broader local market has experienced a substantial decline
Powell’s observation that property is about the long game captures an important feature of the results. Short-term fluctuations can influence individual transactions, but the extraordinarily high proportion of profitable regional resales indicates that many owners who have held property through previous market cycles are still exiting with gains
The latest figures therefore present a regional property sector that remains highly profitable for most sellers. With 97.6% of regional transactions making money compared with 97.3% in the capitals, regional markets retain a small but meaningful profitability advantage
Record median gains across multiple house and unit markets add further weight to that picture. While financial pressure and strategic investor sales will continue to generate some losses, the overwhelming majority of regional vendors are still selling for more than they paid, reinforcing the importance of ownership duration and long-term market performance when assessing residential property outcomes
