Australian home owners now have the protection of a “financial shield” in uncertain times, as property resales achieve record profits, according to Domain.
Rising prices have created a surge in housing equity, which provides a “buffer against rising interest rates and inflation” for existing owners, a report from the real estate firm has found.
As many mortgage borrowers face higher home loan rates after the Reserve Bank’s second rate hike in as many months, 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.
And recent buyers who bought as home values were hitting fresh records are less likely to be sitting on significant equity, particularly those who used low-deposit schemes.
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.
Unsurprisingly, the boost to the wealth of existing property owners has also created a greater barrier for those wanting to enter the market for the first time, its Profit and Loss report noted.
“The extraordinary capital growth in Australia’s property market is moving into home owners’ pockets at unprecedented levels as more households turn a profit,” Domain chief economist Nicola Powell said.
“As home owners stay put for longer, they are seeing their equity build up over multiple price cycles.
“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.”
Dr Powell said the size of the profits was widening the gap between existing owners and prospective buyers, “making it increasingly difficult for younger Australians to buy property without the support of intergenerational wealth”.
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.
Source: Record property profits see home owner wealth surge despite rising interest rates, Jason Dasey for Domain