Australian Property Investment Profits Hit Decade High

Australian property investors are seeing their strongest returns in over a decade, with the majority of resales now delivering a profit.

New data from realestate.com.au, based on PropTrack figures, shows that around 93% of investment properties sold in late 2025 achieved a price above their original purchase.

It marks a clear shift from the volatility of 2022 and 2023, when rising interest rates and softer prices pushed more resales into loss.

→ Profitability Returns, Driven by Capital Growth

The current uplift is being driven primarily by sustained price growth over the past five to six years.

Markets such as Brisbane, Adelaide, and Perth have seen particularly strong value increases since 2020, with most investor resales now recording gains.

This points to a return of capital growth as the dominant force behind investor performance.

→ Investor Activity Strengthens Alongside Rental Pressure

The improvement in returns is occurring alongside a rebound in investor activity.

Lending has increased from its 2023 low, supported by tight rental conditions, low vacancy rates, and rising rents. Even with higher interest rates, the combination of income and capital growth continues to underpin demand.

→ Performance Is Not Uniform

While most markets are recording strong results, performance remains uneven.
Melbourne stands out as an outlier, with slower price growth in recent years leading to a lower share of profitable resales compared to other capital cities.

The data points to a market where profitability has strengthened materially, but not evenly. Returns are being driven less by short-term conditions and more by sustained growth over time.

As the market moves into 2026, price growth may moderate, but underlying demand remains supported by rental pressure and constrained supply.

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Originally posted on LinkedIn