Australian homeowners are sitting pretty as property prices soar, with resale profits hitting a 15-year high. But while the property boom has been a windfall for many, it’s only making homeownership harder for first-time buyers. What does this mean for the future of the housing market?
The Big Boost in Homeowner Wealth
Thanks to skyrocketing property values, homeowners across Australia are sitting on significant equity gains. In fact, the report revealed that 97.5% of house resales and 88.3% of unit resales were profitable in the second half of 2025, reports ABC. For many who’ve owned homes for years, this has been a time to cash in on their investments and secure substantial profits. The median profit for house sales in Sydney, for example, hit a record $750,000—a figure that shows just how much the market has surged.
Colossal capital gains are providing a safety net for homeowners in a time of rising interest rates and inflation. For those with substantial equity in their properties, these gains are a financial cushion, helping them weather the storm of increasing living costs and more expensive home loans.
But It’s Not All Good News
While existing homeowners are profiting, the picture isn’t as rosy for first-time buyers. As property values climb, the dream of homeownership is moving further out of reach for many Australians, particularly younger people without the help of family wealth. The widening gap between homeowners and aspiring buyers is becoming one of the most pressing issues in the housing market today.
Domain’s chief economist, Nicola Powell, emphasized that the “extraordinary capital growth” has entrenched the divide, making it increasingly difficult for younger Australians to get on the property ladder. Those who recently bought homes at peak prices are finding themselves with little to no equity, especially those who used low-deposit schemes.
How the Regions Are Faring
Interestingly, it’s not just the big cities that are seeing these profits. Regional markets have also performed well, with cities like Bendigo and regional Queensland seeing consistent property price increases. In fact, some regional areas are seeing nearly as much profitability as capital cities. For example, 95.8% of unit sales in regional Australia made a profit, compared to 86.2% in the cities.
However, not all markets are performing equally well. Melbourne, Darwin, and Hobart have seen less impressive returns, particularly on units. This reflects the varying levels of demand and price growth across the country, with some areas still recovering from past downturns.
The Growing Challenge for First-Time Buyers
Despite the overall positive news for homeowners, the reality is that the wealth generated by the property boom is not equally distributed. With more than 90% of house sales in some cities turning a profit, the entry-level housing market is becoming increasingly inaccessible for many. The report noted that suburbs once considered affordable for first-time buyers are now seeing price jumps that make them out of reach.
As Dr. Powell puts it, the barrier to entry is now largely defined by family wealth rather than individual savings. In other words, unless young Australians have the financial support of their parents or relatives, the dream of homeownership might remain just that—a dream.
