Investor Sentiment, Market Trends, and Policy Impact: Key Insights from the PIPA Survey

The Australian property market is constantly evolving, and with rising interest rates, shifting government policies, and changing investor sentiment, it has never been more important to stay informed. In a recent episode of the Australian Property Investment Podcast, host Aaron Christie-David sat down with Nicola McDougall, Chair of the Property Investment Professionals of Australia (PIPA), to discuss the latest PIPA Annual Investor Sentiment Survey. This survey provides critical insights into how investors are reacting to market conditions, government regulations, and financial pressures. Watch the full episode here.

The Role of PIPA in the Property Investment Sector

PIPA has been a key player in the property investment space for nearly 20 years, advocating for ethical practices, professional education, and self-regulation within the industry. Despite ongoing challenges in achieving full government regulation, the organisation continues to push for higher industry standards through initiatives like the Qualified Property Investment Advisor (QPIA) training program.

Key Findings from the PIPA Sentiment Survey

1. Investor Sales: Who’s Selling and Why?

One of the most revealing insights from the survey is the increasing number of investors exiting the market. The data shows that 14.1% of respondents have sold at least one investment property in the past 12 months, up from 12% the previous year. The key reasons cited include:

  • Increased holding costs (44%) – Rising interest rates, land tax, and government charges have made it harder for some investors to maintain their portfolios.
  • Government policy and tax changes (29%) – Unfavorable legislative changes, particularly in Victoria and Queensland, have pushed investors to offload properties.
  • Debt reduction strategy (27%) – Many investors have chosen to sell off assets to lower their overall debt exposure amid financial uncertainty.

2. Where Are Investors Selling?

At a capital city level, Brisbane and Melbourne saw the highest number of investor sales, with Sydney following closely behind. The survey also highlighted that regional NSW led the charge in investor sales for regional areas, a trend that has significant implications for rental supply and affordability.

3. The Best and Worst Places for Property Investment

Interestingly, while Victoria was rated as the worst state for property investors due to anti-investor policies, Melbourne was simultaneously ranked as the city with the best investment prospects. This paradox suggests that while investors may be frustrated with policies, they still recognise the long-term potential of Melbourne’s property market, particularly given its affordability compared to other major cities.

On the other hand, Western Australia (WA) was rated as the most pro-investment state, with Northern Territory and Tasmania also ranking high due to relatively investor-friendly policies.

4. Rental Reforms and Their Impact on Supply

The conversation also touched on how rental reform policies are affecting investor behavior. With over 130 rental reforms introduced in Victoria alone, many investors have found the regulatory environment too difficult to navigate. The introduction of new taxes, stricter tenancy laws, and increased compliance requirements have led many landlords to sell, further reducing rental stock at a time when demand remains high.

5. Buying Intentions for 2025

While investor sentiment remains cautious, there is still strong demand for property investment. 45% of respondents believe now is a good time to buy, although this is lower than in previous years. Many are taking a “wait and see” approach, hoping for interest rate cuts before making their next move.

What This Means for Property Investors

  1. Government policies matter – Investors should be aware of policy changes that may impact their bottom line. Keeping up-to-date with state regulations can help avoid unexpected financial burdens.
  2. Market conditions vary by location – While some areas are experiencing investor exodus, others remain strong for long-term growth. Strategic investment decisions, guided by expert advice, are key.
  3. Interest rates remain a major factor – Many investors are waiting for potential interest rate cuts before expanding their portfolios. Understanding the financial landscape is crucial for making informed decisions.
  4. Long-term vision is essential – Despite short-term volatility, property investment remains one of the most effective wealth-building strategies. Working with qualified professionals can help navigate market shifts.

Expert Advice: Get Support from PIPA and Atelier Wealth

Navigating the property market can be complex, especially with ongoing legislative changes and financial pressures. If you’re looking to make informed investment decisions, now is the time to seek expert guidance.

  • Atelier Wealth specialises in property finance strategies, helping investors structure their loans effectively and maximise their financial potential. Whether you’re a first-time investor or building a portfolio, their team can assist you in securing the best mortgage solutions for your needs.
  • PIPA (Property Investment Professionals of Australia) provides a network of qualified property investment advisors who adhere to the highest industry standards. Their expertise ensures that investors receive ethical, professional, and informed guidance to make the best property investment choices.

Take Action Today

The property market rewards informed decision makers and action takers. Don’t let uncertainty hold you back from achieving your investment goals.

Reach out to Atelier Wealth for a property finance strategy session to understand your borrowing power and investment options. Connect with a PIPA qualified property investment advisor to receive expert insights tailored to your goals.

For more insights, listen to the full podcast episode and explore the PIPA survey results to stay ahead of the curve in property investment. Contact Atelier Wealth or any PIPA qualified investment advisor today and take the next step in your property investment journey