Record Seller Profits and What It Means for Buyers
The latest data from Cotality (Sept 2025) show 95.5% of Australian home resales made a profit, the highest rate in 20 years. The median seller profit was about $335,000. This surge comes as national home prices hit record highs for eight straight months. In other words, owners who bought in recent years have built a lot of equity. For sellers, it’s great news, but as buyer’s agents at Prowealth Properties, we know it means buyers should be prepared to pay top dollar in this market.
Houses vs. units: The data make one thing clear, houses have done much better than apartments. Nearly 98% of house resales were profitable, versus about 91% of unit resales. Yet units (about one-third of sales) made up nearly 69% of all loss-making sales. This suggests buyers should be cautious with apartments in weaker markets. By city, Brisbane stands out: essentially 99.8% of homes there sold for a gain, with a median profit of $444,000. More broadly, regional markets remain more resilient: 97.3% of regional resales were profitable versus 94.4% in combined capital cities. However, median profits in the regions (~$290K) lag those of the capitals (~$370K).
Rising rates and buyer caution: The report links these profits partly to easier credit after mid-year rate cuts. But looking forward, rising interest rates could slow the party. Cotality warns that any renewed rate hikes in 2026 may chill prices and squeeze new borrowers. In practical terms, recent buyers, especially those on interest-only loans, may face tighter serviceability. We recommend building a buffer into your loan: fix some debt if you can, keep extra savings aside, and stress-test your repayments with your broker.
What This Market Means for First-Time and Upgrading Buyers
While record seller profits can feel discouraging for buyers, it doesn’t mean opportunities are gone. What it does mean is that buyers need to be more strategic than ever. First-home buyers may face stronger competition and higher entry prices, especially for houses in capital cities. Upgraders, on the other hand, often have equity working in their favour, but still need to be careful not to overpay in emotional bidding environments. In markets like this, success comes from clear budgeting, realistic expectations, and choosing properties with long-term demand rather than chasing short-term hype.
How Prowealth Properties Can Help
As buyer’s agents, we help clients make the most of market conditions. If you have existing equity, we’ll suggest smart ways to leverage it (refinancing, strategic second properties, etc.). When searching for properties, we analyse risk, for example, focusing on high-demand suburbs or exploring opportunities outside the major cities where profits have stayed strong.
Ready to take advantage? Speak with Prowealth Properties today. Call us on 61433853248, send a message, or book a free consultation online. Also, you can follow us on LinkedIn and Instagram as well for more updates. Feel free to contact Prowealth Properties anytime.
