If you own a home in Melbourne and you haven't thought seriously about your equity position lately, you may be pleasantly surprised.
According to Domain's Profit and Loss Report for the second half of 2025, 95.9% of Melbourne house resales over that period delivered a profit, with a median gain of $390,000.
That's a substantial number, and for homeowners who bought in the last decade and haven't revisited what their property is valued at, that equity may be sitting in the background, available to support an upgrade or an investment purchase, if structured correctly.
The broader picture
Over the second half of 2025, 97.5% of house resales and 88.3% of unit resales delivered a profit nationally. The national median resale profit reached $440,000 for houses and $228,000 for units.
For the first time in around 15 years, every capital city recorded more than 90% of house resales at a gain. That signals that equity accumulation has not been confined to prestige suburbs or a handful of high-growth markets. It has been broad-based, lifting the middle of the market across much of the city-based homeowners in Australia.
Where does Melbourne sit?
Melbourne's result of 95.9% profitable house resales and a median gain of $390,000 was strong in absolute terms, even if it sat below the headline numbers posted by current standouts Brisbane (99.5%, $580,000) and Perth (99.5%, $528,000).
Melbourne's relative underperformance compared to those cities is well-documented, so it’s little surprise that it didn’t achieve the same level of results. But what the profitability data did show is that the vast majority of Melbourne homeowners who sold in the second half of 2025 walked away with a substantial gain. And those who haven't sold are still sitting on that equity.
For units, Melbourne's picture is more mixed. Just 75.4% of unit resales delivered a profit, with a median gain of $122,000. This is likely a reflection of the oversupply issues in Melbourne's inner-city apartment market. So for unit owners in particular, the picture varies significantly depending on location, property type and when the property was purchased.
Where the largest gains were concentrated
At the local suburb level, the data showed that the biggest realised gains in Melbourne were concentrated in the inner-city and eastern suburbs. Boroondara recorded a median house resale profit of $1,133,000, while Stonnington East came in at $1,100,000 and Bayside at $898,000.
But profitability in Melbourne was not confined just to the inner ring. Frankston recorded 98.7% of house resales at a profit, Knox came in at 98.1% and Dandenong at 98.1%. These are established, middle-ring suburban markets – not premium postcodes – which underscores how broadly equity has accumulated across the metropolitan area.
Owners in these areas may be sitting on significantly more equity than they realise – particularly if they purchased before the 2020–2021 price surge.
What this means for homeowners thinking about their next move
For Melbourne professionals who bought their home five to ten years ago, the question you should be asking yourself is how much equity do you actually have, and what could you do with it?
In practical terms, equity is the difference between what your home is worth today and what you still owe on your mortgage. If your home is valued at $1.2 million and your outstanding loan is $600,000, you have $600,000 in equity.
But not all of that is immediately accessible. Lenders generally require you to maintain at least 20% of your property's value as security, which means the usable portion is the amount above that 80% threshold. In the example above, 80% of $1.2 million is $960,000. With a $600,000 loan, your usable equity would be $360,000.
That usable equity can be accessed without requiring you to sell. It can be used as a deposit for an investment property, to fund renovations ahead of a sale or to support an upgrade to a larger home as family circumstances change.
What does Domain’s profitability data have to do with equity? The median resale profit of $390,000 for Melbourne houses reflects the capital growth that has been building equity in the background for homeowners across the city. Even if you don't sell the property, that growth will show up in your property's current valuation, which is what lenders use to calculate how much equity you have available.
In other words, the same price growth that has been generating profits for sellers has also been building the wealth of owners who haven't moved at all.
What can you do with equity?
The most common uses among Melbourne professionals are:
1. Buying an investment property. Using equity as a deposit means you can enter the investment market without needing to save a separate cash deposit, which can be a practical path to building a portfolio.
2. Upgrading the family home. Equity can bridge the gap between what you owe on your current property and what you need to buy the next one, particularly useful if you're upsizing as your family grows.
3. Funding renovations. Accessing equity to improve your current home can increase its value and reduce the need to sell and buy again, which minimises transaction costs, including stamp duty.
In each case, the key is ensuring the borrowing is structured correctly from the start – with the right loan type, the right split between personal and investment debt, and a clear plan for how repayments fit within your cash flow.
How do you access equity?
There are two main ways Melbourne homeowners typically access usable equity.
The first is a cash-out refinance, where you refinance your existing loan to a higher amount and take the difference as cash. The second is a home equity loan or line of credit, where you borrow against the equity while keeping your existing mortgage in place. In both cases, the additional borrowing is secured against your property.
The process starts with a formal property valuation, which your lender will arrange. Once your current equity position is confirmed, an experienced brokerage like AXTON Finance can structure the additional borrowing in a way that suits your purpose and keeps your overall loan position manageable.
Is it time to find out where you stand?
Domain's data suggests many Melbourne homeowners who bought in the last decade are sitting on considerable equity, and many haven't stopped to calculate what that actually means for their next move.
A conversation with a mortgage brokerage like AXTON Finance can give you a clear picture of your current position, what you can borrow and how your next move could be structured to work within your overall financial goals.
If you own a home in Melbourne and you're thinking about what comes next, speak to the team at AXTON Finance. Call 03 9939 7576, email getabetterrate@axtonfinance.com.au or get in touch today.
