Perth's property market has experienced an nearly 80% increase in home values over the past five years, significantly boosting profit sales, which reached nearly 99% profitability in the June quarter.

This surge in property values has contributed to Perth ranking third nationally for the highest rate of profit-making sales, with most homeowners holding onto their properties for about nine years before selling for a profit.

The median profit for homeowners who sold at a gain was $324,000, with some properties in Cottesloe and East Fremantle achieving median gains of $694,750 and $440,000 respectively, making these areas among the top in Australia for profit.

A small percentage of sales at a loss, about 13.3%, mostly occurred in Perth's local council area, with an average loss of $40,000, and these sales typically involved properties held for around 12 years.

Recent interest rate cuts have further supported the market, increasing capital growth to 3.1% in the three months leading up to August, which has helped sustain high profitability.

While city markets, including Perth, saw a 1.9% rise in property values over three months, regional markets experienced a slightly lower increase of 1.6%, narrowing the profit margin gap between regional and city areas.

Rising property prices in mid-tier cities like Brisbane, Adelaide, and Perth are lifting values across the board, with regional coastal and lifestyle areas also contributing to regional gains.

Perth ranks third nationally for the highest rate of profit-making property sales, reflecting its strong and resilient market.

In specific affluent areas like Cottesloe and East Fremantle, every property sold during that period was profitable, with median gains of $694,750 and $440,000 respectively.

On a national level, some markets still below their peak values experienced losses, with about a third of all losses occurring in these areas, possibly as owners sell to cut losses amid improving conditions.

Looking ahead, experts suggest that climate change and rising sea levels could influence future property buying decisions, especially in luxury coastal markets and inland areas prone to intense summers.