{"id":391609,"date":"2026-03-18T15:13:14","date_gmt":"2026-03-18T15:13:14","guid":{"rendered":"https:\/\/www.europesays.com\/ie\/391609\/"},"modified":"2026-03-18T15:13:14","modified_gmt":"2026-03-18T15:13:14","slug":"record-property-profits-see-home-owner-wealth-surge-despite-rising-interest-rates","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/ie\/391609\/","title":{"rendered":"Record property profits see home owner wealth surge despite rising interest rates"},"content":{"rendered":"<p class=\"paragraph_paragraph___QITb\">Australian home owners now have the protection of a &#8220;financial shield&#8221; in uncertain times, as property resales achieve record profits, according to Domain.<\/p>\n<p class=\"paragraph_paragraph___QITb\">Rising prices has create a surge in housing equity, which provides a &#8220;buffer against rising interest rates and inflation&#8221; for existing owners, a report from the real estate firm has found.<\/p>\n<p class=\"paragraph_paragraph___QITb\">As many mortgage borrowers face higher home loan rates after the <a class=\"Link_link__kR0xA Link_link__5eL5m ScreenReaderOnly_srLinkHint__OysWz Link_showVisited__C1Fea Link_showFocus__ALyv2\" href=\"https:\/\/www.abc.net.au\/news\/2026-03-17\/rba-lifts-interest-rates-for-second-time-in-2026\/106463146\" data-component=\"Link\" data-uri=\"coremedia:\/\/article\/106463146\" rel=\"nofollow noopener\" target=\"_blank\">Reserve Bank&#8217;s second rate hike in as many months<\/a>, being able to resell property at a profit could provide some financial relief, but also entrenches the gap between home owners and those locked out of the market.<\/p>\n<p class=\"paragraph_paragraph___QITb\">And recent buyers <a class=\"Link_link__kR0xA Link_link__5eL5m ScreenReaderOnly_srLinkHint__OysWz Link_showVisited__C1Fea Link_showFocus__ALyv2\" href=\"https:\/\/www.abc.net.au\/news\/2025-11-03\/investors-versus-first-home-buyers-flock-back-to-property-market\/105943356\" data-component=\"Link\" data-uri=\"coremedia:\/\/article\/105943356\" rel=\"nofollow noopener\" target=\"_blank\">who bought as home values were hitting fresh records<\/a> are less likely to be sitting on significant equity, particularly <a class=\"Link_link__kR0xA Link_link__5eL5m ScreenReaderOnly_srLinkHint__OysWz Link_showVisited__C1Fea Link_showFocus__ALyv2\" href=\"https:\/\/www.abc.net.au\/news\/2026-02-27\/five-pc-home-deposit-scheme-influx\/106136868\" data-component=\"Link\" data-uri=\"coremedia:\/\/article\/106136868\" rel=\"nofollow noopener\" target=\"_blank\">those who used low-deposit schemes<\/a>.<\/p>\n<p class=\"paragraph_paragraph___QITb\">For the first time in 15 years, more than 90 per cent of house resales in every Australian capital city turned a profit, Domain said.<\/p>\n<p class=\"paragraph_paragraph___QITb\">Unsurprisingly, the boost to the wealth of existing property owners has also created a \u00a0greater barrier for those wanting to enter the market for the first time, its Profit and Loss report noted.<\/p>\n<p class=\"paragraph_paragraph___QITb\">&#8220;The extraordinary capital growth in Australia&#8217;s property market is moving into home owners&#8217; pockets at unprecedented levels as more households turn a profit,&#8221; Domain chief economist Nicola Powell said.<\/p>\n<p class=\"paragraph_paragraph___QITb\">&#8220;As home owners stay put for longer, they are seeing their equity build up over multiple price cycles.\u00a0<\/p>\n<p><a href=\"https:\/\/www.abc.net.au\/news\/2026-02-26\/first-home-buyer-affordability-slips-domain-real-estate-report\/106383700\" data-component=\"FullBleedLink\" class=\"RelatedCard_link__rsgR9 FullBleedLink_root__lTw_U interactive_focusContext__yRhc_ interactive_defaults__AKxUU FullBleedLink_showVisited__g3Xvz\" rel=\"nofollow noopener\" target=\"_blank\">First home buyer affordability slips <\/a><\/p>\n<p class=\"Typography_base__sj2RP RelatedCard_synopsis__cFwMW Typography_sizeMobile14__u7TGe Typography_lineHeightMobile20___U7Vr Typography_regular__WeIG6 Typography_colourInherit__dfnUx\" data-component=\"Typography\">The Australian dream of home ownership is becoming an increasingly unrealistic goal for young Australians, new research from Domain has found.<\/p>\n<blockquote class=\"EmphasisedText_quote__TE6kn\"><p>&#8220;This widespread profitability has given many Australians a strong financial safety net and access to continue to &#8216;climb the ladder&#8217;, while providing a buffer against pressures such as rising interest rates and inflation.&#8221;<\/p><\/blockquote>\n<p class=\"paragraph_paragraph___QITb\">Dr Powell said the size of the profits was widening the gap between existing owners and prospective buyers, &#8220;making it increasingly difficult for younger Australians to\u00a0buy property\u00a0without the support of intergenerational wealth&#8221;.<\/p>\n<p class=\"paragraph_paragraph___QITb\">The report found 97.5 per cent of house resales and 88.3 per cent of home unit resales across Australia saw a profit in the second half of 2025.<\/p>\n<p>Loading&#8230;99.5% of Brisbane, Perth houses resell for a profit<\/p>\n<p class=\"paragraph_paragraph___QITb\">Sydney had the record median profit for houses of $750,000 after it saw an annual increase of 11.1 per cent.<\/p>\n<p class=\"paragraph_paragraph___QITb\">However, Brisbane and Perth recorded the highest proportion of profit-making house resales at 99.5 per cent, compared to Sydney&#8217;s 97.9 per cent.<\/p>\n<p class=\"paragraph_paragraph___QITb\">Adelaide came in third at 98.2 per cent profit-taking with house sellers 15.5 per cent better off, dollar-wise, than 12 months earlier.<\/p>\n<p class=\"paragraph_paragraph___QITb\">The profit and loss figures were based on resales that occurred in the second half last year, using properties with matched purchase and resale data.<\/p>\n<p class=\"paragraph_paragraph___QITb\">The once underperforming Brisbane was also a stand-out in apartment sales with an Australia-best 99.1 per cent of home units offloaded earning a gain, followed by Perth (96.8 per cent) and Adelaide (96.6 per cent).<\/p>\n<p><img decoding=\"async\" alt=\"two public housing towers can be seen with the Melbourne city skyline in the background\" class=\"Image_image__5tFYM ContentImage_image__DQ_cq\"  src=\"https:\/\/www.europesays.com\/ie\/wp-content\/uploads\/2026\/03\/2bde5079a11aaa24700a855f6a6e5390.jpeg\" loading=\"lazy\" data-component=\"Image\" data-lazy=\"true\"\/><\/p>\n<p class=\"Typography_base__sj2RP FigureCaption_text__zDxQ5 Typography_sizeMobile12__w_FPC Typography_lineHeightMobile20___U7Vr Typography_regular__WeIG6 Typography_colourInherit__dfnUx\" data-component=\"Typography\">Melbourne units have failed to earns a profit in almost one-quarter of sales. (ABC News: Simon Winter)<\/p>\n<p class=\"paragraph_paragraph___QITb\">The softest markets, Domain found, were Melbourne, Darwin, Canberra and Hobart.<\/p>\n<p class=\"paragraph_paragraph___QITb\">While Melbourne saw 95.9 per cent of houses sold deliver a median profit of $390,000, only 75.4 per cent of units transacted came out in positive territory with a median earning of $122,000, down 2.4 per cent.<\/p>\n<p class=\"paragraph_paragraph___QITb\">Darwin&#8217;s houses remained in demand (94.9 per cent profit earning), but just 72 per cent of units sold for a higher price than what the previous owner had paid, with median earnings of just $78,500.<\/p>\n<p class=\"paragraph_paragraph___QITb\">Canberra saw 93.1 per cent of houses sold for a median profit of $370,000. But its home unit numbers were less lucrative, with a 7.8 per cent drop in profitability, meaning that 87.4 per cent of sellers made money.<\/p>\n<p class=\"paragraph_paragraph___QITb\">Hobart&#8217;s resale rate for both houses and units hovered around 95 per cent, but saw modest increases in the annual change in profit for both.<\/p>\n<p class=\"paragraph_paragraph___QITb\">&#8220;Melbourne, Canberra, Hobart and Darwin recorded lower \u2014 though still elevated \u2014 profit shares relative to Brisbane and Perth [for units],&#8221; the Domain report said.<\/p>\n<blockquote class=\"EmphasisedText_quote__TE6kn\"><p>&#8220;Canberra is the only capital to record an annual decline in the share of profit-making resales, reflecting flatter price momentum.&#8221;<\/p><\/blockquote>\n<p>Regional Australia almost matches capital cities<\/p>\n<p class=\"paragraph_paragraph___QITb\">While house profits in regional Australia were slightly behind city areas, home units fared considerably better, with a gap of almost one-tenth (95.8 per cent in the regions compared to 86.2 per cent in the cities) of unit sales producing a profit.<\/p>\n<p><img decoding=\"async\" alt=\"A large historic building among others in a city at dusk, as seen from a nigh vantage point.\" class=\"Image_image__5tFYM ContentImage_image__DQ_cq\"  src=\"https:\/\/www.europesays.com\/ie\/wp-content\/uploads\/2026\/03\/7fa2d524850eefbf428d654d390a0830.jpeg\" loading=\"lazy\" data-component=\"Image\" data-lazy=\"true\"\/><\/p>\n<p class=\"Typography_base__sj2RP FigureCaption_text__zDxQ5 Typography_sizeMobile12__w_FPC Typography_lineHeightMobile20___U7Vr Typography_regular__WeIG6 Typography_colourInherit__dfnUx\" data-component=\"Typography\">Regional centres such as Bendigo are continuing to see healthy home prices. (Supplied: Tom Bailey\/@TomBaileyTV)<\/p>\n<p class=\"paragraph_paragraph___QITb\">Those outside of the capitals pocketed a median profit of $260,000 when selling a unit compared to $215,000 in the &#8220;big smoke&#8221;, with regional Queensland and regional NSW the most sought-after markets.<\/p>\n<blockquote class=\"EmphasisedText_quote__TE6kn\"><p>&#8220;Housing wealth is not confined to major cities,&#8221;<\/p><\/blockquote>\n<p>  the report said.<\/p>\n<p class=\"paragraph_paragraph___QITb\">&#8220;Population inflows, lifestyle demand and constrained supply have supported steady price appreciation, translating into significant realised gains for [regional] sellers.&#8221;<\/p>\n<p><img decoding=\"async\" alt=\"Purple flowered trees in a suburban street intersection with ornate light-coloured buildings behind\" class=\"Image_image__5tFYM ContentImage_image__DQ_cq\"  src=\"https:\/\/www.europesays.com\/ie\/wp-content\/uploads\/2026\/03\/b730e61f9134cb924ac6893653412aeb.jpeg\" loading=\"lazy\" data-component=\"Image\" data-lazy=\"true\"\/><\/p>\n<p class=\"Typography_base__sj2RP FigureCaption_text__zDxQ5 Typography_sizeMobile12__w_FPC Typography_lineHeightMobile20___U7Vr Typography_regular__WeIG6 Typography_colourInherit__dfnUx\" data-component=\"Typography\">Owners of houses in the Sydney suburbs such as Paddington sell for huge profits, Domain says. (Supplied: Susan Wyndham)<\/p>\n<p>$2m-plus profits in blue ribbon Sydney suburbs<\/p>\n<p class=\"paragraph_paragraph___QITb\">Sydney remained the city with the most eye-watering median profits when it came to house sales, with the Eastern Suburbs and Northern Beaches leading the way, Domain found.<\/p>\n<p class=\"paragraph_paragraph___QITb\">Eastern Suburbs-North, which includes the suburbs of Paddington, Woollahra, Vaucluse and Bondi, had a median house profit of $2.77 million, followed by Manly at $2.32 million and Chatswood\/Lane Cove at $2.035 million.<\/p>\n<p class=\"paragraph_paragraph___QITb\">On the west coast, the combined Perth suburbs of Cottesloe-Claremont attracted the highest median profit outside of Sydney at $1.4 million, in an indicator of the West Australian capital&#8217;s resurgence.<\/p>\n<p><img decoding=\"async\" alt=\"The Lifesaver Rescue Helicopter patrols the Perth coastline from Mandurah in the south to Yanchep in the north.\" class=\"Image_image__5tFYM ContentImage_image__DQ_cq\"  src=\"https:\/\/www.europesays.com\/ie\/wp-content\/uploads\/2026\/03\/e88fcba62028594aaa05171804ae37a3.jpeg\" loading=\"lazy\" data-component=\"Image\" data-lazy=\"true\"\/><\/p>\n<p class=\"Typography_base__sj2RP FigureCaption_text__zDxQ5 Typography_sizeMobile12__w_FPC Typography_lineHeightMobile20___U7Vr Typography_regular__WeIG6 Typography_colourInherit__dfnUx\" data-component=\"Typography\">Perth has become one of Australia&#8217;s most profitable real estate markets, with 99.5 per cent of sellers turning a profit. (720 ABC Perth: Lorraine Horsley)<\/p>\n<blockquote class=\"EmphasisedText_quote__TE6kn\"><p>&#8220;For the first time in around 15 years \u2014 not since the mining investment boom of 2011-2013 \u2014  national leadership has rotated so clearly west,&#8221;<\/p><\/blockquote>\n<p>  the report said.<\/p>\n<p class=\"paragraph_paragraph___QITb\">Brisbane Inner \u2014 including the affluent suburbs like New Farm, Toowong and East Brisbane \u2014 also made lucrative gains, as house sellers pocketed a median amount of $1.157m.<\/p>\n<p><img decoding=\"async\" alt=\"Close ups of high rise buildings in Brisbane's CBD\" class=\"Image_image__5tFYM ContentImage_image__DQ_cq\"  src=\"https:\/\/www.europesays.com\/ie\/wp-content\/uploads\/2026\/03\/952a49df8cecb5b9f70aa83586f46be5.jpeg\" loading=\"lazy\" data-component=\"Image\" data-lazy=\"true\"\/><\/p>\n<p class=\"Typography_base__sj2RP FigureCaption_text__zDxQ5 Typography_sizeMobile12__w_FPC Typography_lineHeightMobile20___U7Vr Typography_regular__WeIG6 Typography_colourInherit__dfnUx\" data-component=\"Typography\">Ahead of the 2032 Olympics, inner-city Brisbane is in high demand. (ABC News: Luke Bowden)<\/p>\n<p class=\"paragraph_paragraph___QITb\">Even so, Domain said that suburbs that were once considered average or run-of-the-mill were now overachieving.<\/p>\n<p class=\"paragraph_paragraph___QITb\">&#8220;Profitability is not confined to prestige areas,&#8221; the Domain report said.<\/p>\n<blockquote class=\"EmphasisedText_quote__TE6kn\"><p>&#8220;Many established, family-oriented suburban middle-ring markets recorded near-universal gains, demonstrating the market&#8217;s strong growth at every price point.&#8221;<\/p><\/blockquote>\n<p>Barrier to entry defined by existing family wealth<\/p>\n<p class=\"paragraph_paragraph___QITb\">St Marys, in Sydney&#8217;s far west, boasted a 100 per cent success rate in resale house profitability, while Campbelltown and Sutherland both scored above 99 per cent.<\/p>\n<p><a href=\"https:\/\/www.abc.net.au\/news\/2026-03-18\/is-reserve-bank-interest-rate-rise-fighting-last-years-war\/106463596\" data-component=\"FullBleedLink\" class=\"RelatedCard_link__rsgR9 FullBleedLink_root__lTw_U interactive_focusContext__yRhc_ interactive_defaults__AKxUU FullBleedLink_showVisited__g3Xvz\" rel=\"nofollow noopener\" target=\"_blank\">RBA governor warns of the recession we might have to have<\/a><\/p>\n<p class=\"Typography_base__sj2RP RelatedCard_synopsis__cFwMW Typography_sizeMobile14__u7TGe Typography_lineHeightMobile20___U7Vr Typography_regular__WeIG6 Typography_colourInherit__dfnUx\" data-component=\"Typography\">Is the RBA fighting last year&#8217;s inflation war with its latest interest rate hike? Whatever the case may be, Australians are bracing for even more economic pain.<\/p>\n<p class=\"paragraph_paragraph___QITb\">Melbourne&#8217;s Frankston (98.7 per cent), Knox (98.1 per cent) and Dandenong (98.1 per cent) topped the percentage of profitable sales for the Victorian capital.<\/p>\n<p class=\"paragraph_paragraph___QITb\">A downside of the spreading profitability for would-be buyers is that suburbs once considered entry points for first-home buyers are moving out of reach.<\/p>\n<p class=\"paragraph_paragraph___QITb\">&#8220;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,&#8221; Dr Powell said.<\/p>\n<blockquote class=\"EmphasisedText_quote__TE6kn\"><p>&#8220;With record median profits in many of our cities and regions, the barrier to entry is increasingly defined by existing family equity, rather than individual savings alone.&#8221;<\/p><\/blockquote>\n<p><img decoding=\"async\" alt=\"An aerial photo of an urban area with a river through the middle, and a green mountain range in the distance.\" class=\"Image_image__5tFYM ContentImage_image__DQ_cq\"  src=\"https:\/\/www.europesays.com\/ie\/wp-content\/uploads\/2026\/03\/1f997bb95c3ee35aedc274e47a357b6b.jpeg\" loading=\"lazy\" data-component=\"Image\" data-lazy=\"true\"\/><\/p>\n<p class=\"Typography_base__sj2RP FigureCaption_text__zDxQ5 Typography_sizeMobile12__w_FPC Typography_lineHeightMobile20___U7Vr Typography_regular__WeIG6 Typography_colourInherit__dfnUx\" data-component=\"Typography\">It has been boom or bust for some sellers in the Tweed Valley in NSW. (Supplied: Tweed Shire Council)<\/p>\n<p class=\"paragraph_paragraph___QITb\">Some regional locations made both lists, the biggest median profit and largest median loss, highlighting that while real estate often pays off, it is not always a sure thing.<\/p>\n<p class=\"paragraph_paragraph___QITb\">While the Tweed Valley in NSW had the state&#8217;s third largest house median profit at $630,000, it also topped the charts for the worst median loss at $312,500. Similarly, the Queensland resort town of Noosa had a $910,00 median house profit, but also a median loss of $150,000 when sellers came up short.<\/p>\n<p><a href=\"https:\/\/www.abc.net.au\/news\/2026-03-17\/mortgage-repayment-calculator-rba-march-2026\/106460750\" data-component=\"FullBleedLink\" class=\"RelatedCard_link__rsgR9 FullBleedLink_root__lTw_U interactive_focusContext__yRhc_ interactive_defaults__AKxUU FullBleedLink_showVisited__g3Xvz\" rel=\"nofollow noopener\" target=\"_blank\">Mortgage repayments calculator<\/a><\/p>\n<p class=\"Typography_base__sj2RP RelatedCard_synopsis__cFwMW Typography_sizeMobile14__u7TGe Typography_lineHeightMobile20___U7Vr Typography_regular__WeIG6 Typography_colourInherit__dfnUx\" data-component=\"Typography\">Our mortgage repayment calculator will show you how much your loan repayments may change.<\/p>\n<p class=\"paragraph_paragraph___QITb\">&#8220;The largest resale losses are concentrated in areas that experienced strong price growth in earlier years,&#8221; the report said.<\/p>\n<p class=\"paragraph_paragraph___QITb\">&#8220;These figures often reflect small numbers of transactions and individual purchase timing. Importantly, the majority of properties within these areas are still reselling at a profit.<\/p>\n<blockquote class=\"EmphasisedText_quote__TE6kn\"><p>&#8220;[But] across national, capital, regional and local markets, the consistent theme remains clear: housing wealth in Australia is deeply embedded, broadly distributed and increasingly realised at resale.&#8221;<\/p><\/blockquote>\n","protected":false},"excerpt":{"rendered":"Australian home owners now have the protection of a &#8220;financial shield&#8221; in uncertain times, as property resales achieve&hellip;\n","protected":false},"author":2,"featured_media":391610,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_share_on_mastodon":"0"},"categories":[174],"tags":[79,27102,179,18,45296,6473,119748,178757,1789,3847,19,17,9650,178756,20560,36111,1361,67167],"class_list":["post-391609","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-business","tag-domain","tag-economy","tag-eire","tag-equity","tag-generational-wealth","tag-home-owners","tag-home-units","tag-houses","tag-housing","tag-ie","tag-ireland","tag-mortgages","tag-nicola-powell","tag-profit-taking","tag-profits","tag-real-estate","tag-renters"],"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@ie\/116250831027452315","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts\/391609","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/comments?post=391609"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts\/391609\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/media\/391610"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/media?parent=391609"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/categories?post=391609"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/tags?post=391609"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}