Previously known as “The Property Planner, Buyer and Professor”
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Show Notes – Property Investment and Changing Sentiment
In this week’s episode, the Property Trio unpack the eye-opening results from PIPA’s 2025 Annual Property Investor Sentiment Survey, now in its 11th year.
What’s really behind the growing number of investor exits and what it all means for Australia’s tight rental market.
The Headline Figure Is Striking
16.7% of investors sold at least one property in the past year, the highest rate since the question was first introduced in 2022.
The Trio explore how rising costs, increasing legislative uncertainty and fears over potential tax reforms are driving investors out just when rental demand is at record highs.
Which Cities Are Seeing the Most Investor Sales?
They reveal that while Melbourne’s investor sale rate climbed slightly to 22.1%, Brisbane (19.7%) and Perth (11%) aren’t far behind.
It’s not just a Victorian problem; it’s national.
The Trio also ponders the idea that some Perth investors might be finally “cashing out” after a decade of sluggish returns, showing how long-term fatigue and short-term gains can both influence investor behaviour.
Regional Markets Tell Their Own Story
The trio shares that regional Queensland led the country with 15.8% of investors selling (more than double last year’s figure), while regional Victoria recorded 7.9%, and regional NSW fell sharply to 5.5%.
They suggest that recent interest rate cuts may have steadied nerves in NSW, while Queensland’s strong capital gains tempted investors to sell.
What’s Driving Investors to Sell?
From rising compliance and insurance costs, the desire to reduce debt and increasing frustration over complex rental reforms.
Policy uncertainty looms large, with more than half of respondents saying they’d stop investing if negative gearing rules changed, and 35% saying they’d exit if CGT discounts were reduced.
Another Concern Emerges: Communication Breakdown
A striking 64% of investors were unaware of Victoria’s new vacant land tax, and 60% had only limited understanding of tenancy law changes.
Even more startling, 10% said they’d never heard from their state government at all.
This lack of engagement leaves investors navigating complex changes blindfolded.
The Silver Lining
Despite the challenges, confidence is on the rise.
Nearly 60% of investors believe the next 12 months present good buying opportunities.
And in a surprise twist, Melbourne has reclaimed top spot as Australia’s preferred investment destination, leaping from 26% last year to 41%.
Gold Nuggets
Mike Mortlock’s gold nugget: Mike makes the point about increasing tax losses since 2020/2021’s tax year impacting the investor cohort significantly.
Cate Bakos’s gold nugget: Cate puts her PIPA board member hat on and encourages our community of investors to participate in the survey next year.
Resources:
Listeners can request a copy of the survey results by contacting us.
- Ep. 164: Analysing regional locations – What investment principles can be gleaned from the highest performing regions in each state? Comparing capital city vs regional performance from 2003 – before and after covid
- Ep. 169: Houses vs units – Capital growth performance in capital cities and regions over the last 20 years and which locations have units outperformed houses and why?
- Ep. 208: The Distance Dilemma: Decoding the Proximity Puzzle for Property Investors
- Ep. 213: Exploring How Government Policy Shapes Investor Behaviour – Decoding the Queensland Land Tax Ripple Effects
- Ep. 286: Is Investing in Property Still Worth It? Navigating the Shifting Property Landscape
