Australia’s property market is booming, with homeowners pocketing record profits when reselling their properties. Teach Me About Property (TMAP) looks at how equity can work for you and what it means to profit in today’s market.

Record Profits for Sellers

According to CoreLogic, in the June 2024 quarter, Australian property owners achieved a median resale profit of $285,000 – a new record. Nearly 95% of resales resulted in a gain, showing just how profitable property can be, especially for those who’ve held their properties for a few years.

Cities like Brisbane (with a 99.1% profit rate), Adelaide (98.7%), and Perth (95.4%) lead the charge, while Sydney and Melbourne have slightly lower profitability rates.

Houses vs. Units

Houses continue to outperform units in terms of resale profits. Nationally, 97.2% of houses sold at a profit, compared to 89.4% of units. On average, house owners made around $340,000 in profits, while unit owners made $185,000. The numbers clearly show the potential value of investing in houses.

Regions on the Rise

Regional Australia is also proving to be a great investment. In the June quarter, 95.7% of properties sold in regional areas made a profit, outperforming the capital cities. While some areas still experience loss-making sales, most regional markets are going strong, particularly lifestyle and resource-based areas.

Hold Periods Matter

When it comes to resale profits, how long you hold a property is important. In the June quarter, the average hold period for profitable sales was 8.9 years. During this time, national property values increased by 56%, giving those who bought around 2015 the chance to reap significant gains today.

What’s Next?

With rising home values, the trend of profit-making sales is expected to continue. However, higher interest rates and affordability pressures could make things a little tougher. At TMAP, we guide property investors through these challenges, offering strategies to maximise equity and build long-term wealth.

TMAP’s approach ensures clients can make informed decisions and secure the best possible outcomes. Whether you’re a first-home buyer or building an investment portfolio, understanding how to grow your equity is key to success.