Is the Canberra property profit boom over?

While more than nine in 10 Canberra home owners who sold their house in the first half of this year made a profit, the rapid growth of recent years has largely stalled, creating a stable yet mixed market, according to the latest Domain Profit and Loss report.

The report reveals 92.9 per cent of house resales returned a profit, with a median gain of $420,000. However, this figure was unchanged year-on-year, suggesting growth has flattened.

At the same time, 7.1 per cent of houses that resold at a loss saw their median shortfall increase by 21.5 per cent to $79,000, placing Canberra among the weaker capital city markets.

Canberra’s unit market was mixed. While nearly 90 per cent of resales were profitable, the median gain of $130,000 was down 10.1 per cent compared to a year earlier, highlighting softer conditions in the sector.

Despite the city-wide plateau, some pockets of strength remain. Woden Valley and Molonglo stood out as the best-performing regions, with median profits climbing 16.6 per cent and 21.6 per cent respectively. Molonglo achieved a 100 per cent profitable resale rate, showcasing its resilience.

On a national scale, home owners continue to cash in as market momentum regains pace. The report shows longer holding periods, typically around nine years (houses) and eight years (units), are magnifying returns by allowing more time for equity growth and shielding sellers from short-term fluctuations.

Overall, the Canberra market remains tilted towards profitable resales, but the figures indicate a distinct levelling out of returns, particularly in the unit sector.