The regions continue to perform well even as the property market momentum cools, with Wagga and Albury Wodonga revealing the biggest gains in a recent industry report.
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National resale profitability rates have reached the highest level in more than two decades as the median gain hit a record in the March quarter, Cotality data reveals.
The latest Cotality Pain & Gain report analysed almost 101,000 resales in the first quarter of this year, revealing that 96 per cent of residential property resales delivered a nominal profit over the quarter, up slightly from 95.9 per cent in December, and the strongest result since 2005.
The median gain increased to a record $377,000, while the median loss remained unchanged at $45,000.
Wagga Wagga PRD estate agent Tom Griffith says strong local demand continues as the city's fundamentals remain solid.
"The city's mix of defence, university, healthcare and agricultural employment continues to support consistent housing and rental demand, regardless of what's happening in Sydney or Melbourne. Well-presented properties in established suburbs are still attracting strong buyer interest, and the rental market remains tight, particularly for quality family homes," Griffith says.
For sellers, the combination of easing rates and steady local demand is a genuinely supportive backdrop.
For buyers, Griffith says don't wait for the perfect moment.
"Get pre-approved, understand the schemes you may be eligible for, including NSW first home buyer concessions, and work with a local agent who knows what's actually happening on the ground."
Sellers are winners
Cotality head of research, Gerard Burg says that despite signs of slowing momentum across parts of the housing market, sellers are still benefitting from growth built over many years.
"The strong resale results we're seeing today largely reflect the substantial value growth accumulated over recent years, rather than current market conditions," Burg says.
"Housing values continued to rise through most of 2025, and many sellers have benefited from holding their property through multiple growth cycles, which has allowed them to build significant equity over time."
While resale profitability hit a record high, those who sold for a loss were more likely to be recent purchasers.
Loss-making house resales had a median hold period of 4.3 years in the March quarter, placing many of those purchases around the market peak in late 2021 and early 2022.
By comparison, properties sold at a profit had typically been held for 9.1 years.
Value growth
The results highlight how the difference in market conditions can change the financial outcome significantly for those with shorter ownership periods.
"Most people selling for a profit today are benefiting from years of accumulated value growth, but those who purchased closer to the recent peak have had less time to build equity and are more exposed to market fluctuations," Burg says.
"The figures illustrate the value of a buy-and-hold approach to property ownership. Time remains one of the most effective ways to absorb market cycles and improve the likelihood of a positive resale outcome."
Regional markets have seen stronger profitability from the perspective of share of sales that have been profitable, however, the median gain has lagged that of the combined capitals, reflecting the more modest growth in values over the longer term.
"From that dollar value perspective, the typically higher value of capital city markets over the longer term still provides opportunity advantages, but there is greater uncertainty around the path to profitability as we head into a downturn (that is likely to see cities fall more rapidly than regions)," Burg says.
Lifestyle wins
Lifestyle markets have generally been stronger performers than the inland regional markets, reflecting strong demand from generally higher net worth people departing the cities.
Inland regional markets have been attracting buyers prioritising affordability and have seen comparatively more modest gains over the longer term, where profitability is built, he says.
The broad range of demand-side drivers impacting the market right now, which will lead to the likely national downturn in coming months.
"Affordability and serviceability constraints were already evident late last year, even before the three rate rises from the RBA.
"Added to that, we've seen the impact of the Iran conflict on both fuel costs and uncertainty. Finally, we've had the changes in the budget. These have combined to weaken the demand side," Burg says.
