Recent data reveals that outer suburbs of Perth, including Bassendean and Joondalup, are climbing the rankings in property profitability. A report from Cotality indicates that a remarkable 98.2 percent of homes sold in the September quarter were sold at a profit. This assessment looked at nearly 100,000 property resales across Australia, breaking down statistics to the local government area level.
Perth ranks third nationally for profitability, following Brisbane at 99.8 percent and Adelaide at 99.3 percent. The Town of Cottesloe stands out with the highest median profit in Perth, where homeowners reported an impressive median return of $1 million. In the City of Melville, 97.8 percent of properties sold yielded a profit, with a median profit of $527,500.
In contrast, Bassendean achieved an extraordinary milestone with all recorded sales resulting in profits, averaging $422,500 in median profit. Joondalup also performed well, with 99.8 percent of sales profitable, reflecting a median profit of $525,000. Additionally, the City of East Fremantle reported a median profit of $650,000, with 95.5 percent of sales making a profit, and a median property hold time of 15.9 years.
Cotality’s analysis attributes the small percentage of sales that did not turn a profit to homeowners who purchased during the previous mining boom and subsequently sold at a loss. This perspective was challenged by Trent Fleskens, managing director of Strategic Property Group, who noted that the peak profit point for mining boom-era purchases had already passed two to three years ago. He emphasized that while no market can achieve 100 percent profitability, various factors, including personal circumstances like death and divorce, contribute to some homeowners selling at a loss.
Fleskens further stated that the consensus within the real estate industry is that the Perth market is poised for double-digit growth over the next year. He cautioned that this trend could create challenges for younger buyers trying to enter the market. “I don’t expect to see this change for the foreseeable future,” he remarked.
The ongoing demand for housing continues to outpace supply, influenced by factors such as migration to the region. According to Cotality, the national average for profitable sales also saw an increase, with 95.5 percent of sellers making a profit, up from 94.9 percent in the previous quarter. This marks the most substantial result since July 2005.
Eliza Owen, head of research at Cotality, explained that the rise in profitability can be linked to increasing market values, resulting from improved credit conditions following cash rate cuts earlier this year. Looking ahead, she noted that the outlook for profitability in 2026 is less certain due to anticipated changes in interest rates, which may particularly affect recent home buyers.
With these emerging trends, both homeowners and potential buyers in Perth are navigating a dynamic market landscape, where profitability remains a key indicator of real estate resilience.
