Perth & Adelaide Lead Australia’s Resale Profits: Domain’s Data Explained

Australia’s property market has faced rapid interest rate hikes, shifting sentiment, and economic uncertainty. Yet the latest resale profitability data, discussed with Domain’s Dr. Joel Bowman on The Property Nerds, reveals a surprisingly resilient market — with clear leaders in Perth and Adelaide.

In this blog, we’ll break down which markets are outperforming, where investors need to tread carefully, and what the October 1 first-home buyer changes could mean for affordability and demand.

Key Takeaways

• Perth & Adelaide: ~80–90% price growth since the pandemic, driving record resale profits.
• Sydney: Up ~50% — solid but behind the leaders.
• Melbourne & Darwin units: Lower profit shares, but Darwin offers ~8% yields.
• Vacancy rates: Perth under 0.5%, keeping prices and rents elevated.
• October 1 changes: LMI removal and higher caps will expand the first-home buyer pool.

Why Perth & Adelaide Are Outperforming

Perth has combined population growth, low unemployment, and vacancy rates under 0.5% — all pushing prices upward. Meanwhile, Adelaide entered the pandemic as one of Australia’s most affordable capitals and has surged ~90% in both houses and units.

For investors, this is a reminder: don’t let old labels like “sleepy Adelaide” blind you. Over the last five years, investors who backed Adelaide almost doubled the gains of Sydney and Melbourne buyers. See real case studies here.

Melbourne & Darwin Units: Mixed Signals

Unit resale profits remain weaker than houses nationwide, but the story varies by city:

• Melbourne units: Only ~70% of sales profitable, with many CBD units flatlined in value over a decade.
• Darwin units: Profitability lower again, but rental yields average ~8% — nearly double Sydney’s unit yields.

For yield-focused buyers, Darwin units can model well using our Advanced Rental Income (ARI) Calculator. For Melbourne, success comes down to micro-market selection — targeting scarcity, liveability, and strong owner-occupier appeal.

First-Home Buyer Changes: October 1

The removal of lenders’ mortgage insurance (LMI) and higher purchase caps (up to $1.5m in Sydney) will immediately increase the pool of first-home buyers. This could create a short-term demand surge, with early movers likely to benefit the most before prices rise.

If you’re a first-home buyer, get finance pre-approvals ready and shortlist suburbs with tight vacancy rates, strong infrastructure, and employment access.

Macro Risks on the Horizon

Australia’s housing market remains structurally strong, but investors should watch:

• Trade tensions: Escalations dent consumer sentiment and market confidence.
• Tax changes: Possible reforms to negative gearing and capital gains tax.
• Credit policies: Regulators may tighten lending if activity overheats.

The takeaway: build serviceability buffers and diversify geographically to weather shocks.

Myth-Busting: Distressed Sales

Despite higher rates, distressed sales are rare. Why? Strong employment markets and the capital gains buffer of the last five years mean most sellers remain in profit.

How Investors Should Respond

1. Prioritise outperformers like Perth and Adelaide.
2. Be selective in Melbourne units; consider yield plays in Darwin.
3. Act early if eligible for October’s first-home buyer scheme.
4. Model scenarios with the ARI Calculator.
5. Book a Discovery Call with our team for tailored guidance.

Listen to the Full Episode

🎧 Watch the full conversation with Domain’s Dr. Joel Bowman on YouTube: Click here to listen.