Australians in Generation X are emerging as the big winners in the property boom, with new data revealing some people are making more than $1 million in profit selling their homes.

Domain’s latest report shows a record-high 96 per cent of properties are selling for a profit, with median capital gains reaching a staggering $326,000 for houses, a 16-year high.

Australians in Generation X and even older millennials, typically those aged in their late 30s and 40s, are the biggest winners, topping even Baby Boomers as the market soars, explained Domain’s chief of research and economics Nicola Powell.

“While Boomers have certainly reaped significant rewards from decades of rising home prices, it is their children who are walking away with the most profit in today’s market,” Powell said.

“Those in their late 30s to late 40s are well established in their careers, have equity from their current home, and have the financial capacity to upsize.”

The current boom has been remarkable because it has come at the same time as soaring interest rates, with property prices rising despite borrowing power being squeezed.

Those higher prices mean more profits for sellers, with listings bouncing up in recent months as Australians look to cash in on robust demand for housing over the past two years.

That demand is being underpinned by local as well as overseas interest in Australian property, with figures from PropTrack on Friday showing interest from international investors is soaring.

There has been a 51 per cent annual increase in investors from the United States in Australian property over July, PropTrack said, while interest from the United Kingdom rose 15 per cent.

It’s all bad news for Australians who don’t own homes, however, with increasing property prices and tighter monetary policy creating a double whammy that is pricing more people out of the market.

Areas with the biggest profits

Sydney is leading the rankings for dollar value profits in the property upswing, owing to it being the most expensive market in the country, with median profits for sellers of $655,000.

The biggest profits made by sellers in Sydney topped $1 million, with one seller in the suburb of Neutral Bay, where the median age is 38, earning a whopping $1,095,000 return.

Sydney does, however, have a slightly lower proportion of profit-making sales lately (95.6 per cent) than smaller capitals, which are proving to be hotter in the current market.

Across Brisbane an astonishing 99.5 per cent of sales are making profits, with median capital gains of $395,000, which is just behind Melbourne’s median profit rate of $397,000.

One home in the Brisbane suburb of Pullenvale, where the median age is 43, made a staggering $1,237,500 return on the property.

Melbourne’s suburb of Somers, where the median age is 53, topped the list for Australia’s second largest city, with one seller earning $883,500 (a return of 268 per cent).

Outlook for the market

Moving forward it’s unclear the extent to which these gargantuan profits will continue, with house price growth slowing in most major cities as buyers come up against affordability hurdles.

The potential for interest rate cuts next year could act as somewhat of a tailwind for the market though, with major forecasters expecting house prices will continue going up for the time being.

Forecasts from Domain suggest house prices will increase 4 to 7 per cent in the current financial year, while unit prices are tipped to grow 3 to 5 per cent.

The fastest growth is expected in medium-sized capitals such as Perth, Adelaide and Brisbane, which would be a continuation from current trends that have seen the likes of Sydney and Melbourne fall behind.