Melbourne homes made the highest profits of any capital city in the June quarter, with 98.9% of properties selling above the purchase price.
According to CoreLogic's latest Pain and Gain report, the real estate market in the Ballarat SA4 area soared to become one of the best performing regions in the state, with 99.7% of sales sold for profit over the same period.
Profitability across Victoria is at an all-time high, with 98.7 per cent of properties selling for more than previous purchase prices.
Eliza Owen, research director at CoreLogic, said she expects this positive gain to start "encouraging landlords to engage and shorten typical holding periods, especially as major cities emerge from the 2021 lockdown."
Jason Birch, an agent for PRD Ballarat, said he "has no doubt" that the region has experienced a huge real estate boom that has been further exacerbated by Covid-19.
"Ballarat saw unprecedented growth not only in the last quarter, but also in the last two years," Mr Birch said.
"It was fantastic; it exceeded our expectations."
Mr Birch cited a property he sold four months ago for $55 million and is about to be relisted for $62 million.
He said the area had not experienced a "tsunami" of Melbourneers buying property, which would have been expected in the new crown.
But the combined effects of local buyers, investor cash-outs and inventory reductions have pushed it to new heights.
"Overall, Ballarat's real estate performance is very good," Mr Birch said.
"It was undervalued for a while, and now it's at a price we thought we couldn't achieve."
Moorabool sellers are also good, with 100% of properties selling for more than their previous prices, with a median profit of $260,000 over the same period.
After an average of 10 years of ownership, properties in the bayside district of the city received the biggest dividend, with a median profit of up to $760,000.
But for the Melbourne market, the city is one of only two markets where sales losses rose in the June quarter, along with Hobart.
This is driven by units and apartments, the report said.
Of these properties, units in the Melbourne City area fell the most, with 34.8 per cent of resale units sold at a loss.
About 87% of these homes are owned by investors, with a median loss of around $50,000.
In the three months to June, the largest loss on sales was a property on the Mornington Peninsula at a loss of $228,500, the largest loss-making transaction in Melbourne.