Investor sentiment is a powerful undercurrent in Australia’s property market. Behind the prices, yields and headlines lie attitudes, concerns and intentions — and the latest Investor Sentiment Survey of nearly 900 property investors, conducted by PIPA, offers a revealing snapshot of where the market stands today.
In this article, we break down the key findings from the latest Investor Sentiment Survey, unpack what they mean for you as a current or aspiring property investor, and share clear, actionable next steps to help you move forward with confidence. These insights were also discussed in detail on The Australian Property Investment Podcast, giving you an inside look at how industry leaders are interpreting the data.
Why Investor Sentiment Matters
You might ask: why care about sentiment? The answer is simple — how people feel drives behaviour. When sentiment turns, so do investment decisions: buying, holding or selling.
PIPA, as the peak body for property investment professionals in Australia, uses this survey data to:
- Advocate to state and federal governments
- Inform industry commentators and media
- Empower advisors, brokers, and investors with insight
For you, the survey uncovers patterns of stress, opportunity, and risk well before they show up in price movements or rental growth.
What the Survey Reveals: Key Findings
A Rising Number of Investors Are Selling
One of the most striking results: 16.7% of surveyed investors reported that they sold at least one property in the past 12 months — a meaningful uptick from earlier years.
When asked how long they held the property before selling:
- A significant proportion held it for 10–20 years
- Others sold after 7–10 years
- Few had ultra-short holds (less than 5 years)
That suggests the decisions to sell are not rash — many are long-term investors reacting to evolving pressures.
Why Are Investors Selling?
The motivations behind selling speak volumes:
- Reducing debt exposure – 41.7%
- Rising holding & compliance costs – 40.4%
- Increased land tax & government charges – approximately 33%
Debt burden, regulatory costs and taxation pressures are the dominant triggers. In effect, many investors are “pre-emptively lightening” their portfolios to mitigate future risk.
What’s Next? Future Selling Intentions
Not only are investors selling now — many more are contemplating it. The survey asked about future selling intentions and found a sizeable cohort now reassessing their position.
If more investors act on that sentiment, it could impact supply, rent levels, and investor confidence across markets. For existing property holders, this could nudge rental competition and vacancy rates in tighter markets.
Negative Gearing: The Policy Question
One of the most provocative survey results was this:
Over 53% of respondents said they would stop investing if negative gearing were removed.
This result underscores two things:
- Dependence on tax benefits: Many investors are including negative gearing as a critical part of their strategy, rather than focusing first on positive cash flows.
- Education gap: Some investors say they’d quit investing, even though the goal of investing should be sustainable yields, capital growth and risk mitigation — not optimising for tax breaks alone.
In short: policy matters, but so does investor literacy. Removing incentives without educating investors could flush capital out of the sector or force some to re-orient entirely.
Where Investors Are Buying (Now and Next)
The survey also examined geographic preference shifts.
- Current hotspots: Melbourne and regional Victoria remain popular.
- Emerging interest: Brisbane leads the list of future target markets.
This signals shifting confidence across states. With rental demand rising in Queensland, investor appetite is following where projected yield and appreciation seem more favourable.
What this behaviour suggests:
- State policies, taxation and land supply are major differentiators
- Investors are seeking markets where growth and cash flow prospects appear more balanced
- The movement toward Brisbane may pre-empt supply and affordability challenges in southern markets
The Broader Context: Supply, Policy & Construction
The sentiment survey doesn’t exist in a vacuum. It mirrors real constraints in Australia’s housing supply, regulation and construction capacity.
Supply Crunch Intensifies
Despite numerous government targets, housing supply has struggled to keep pace. This adds upward pressure to prices and stresses the rental market — even as investor sentiment wavers.
Policy Shifts on the Horizon
From October, new federal policies for first home buyers will take effect (e.g. stamp duty relief, grants) which may further alter capital flows and demand. Many in the industry speculate that by Easter 2026, the landscape will look significantly different.
Construction & Quality Challenges
Add to that:
- Reports of substandard workmanship and defects
- Labour shortages in skilled trades
- Cost pressures on materials and delivery timelines
These factors all feed back into investor risk, developer behaviour and market confidence.
The Role of Professionals in This Climate
Amid uncertainty, many survey respondents named mortgage brokers and trusted advisers as their first port of call.
- ~43% of investors said they approach a broker first when making decisions
- Brings into focus the responsibility and influence that brokers and advisors carry
Because sentiment changes quickly, professionals who provide timely, strategic advice (not just transactional deals) can help clients pivot safely.
Actionable Takeaways for Property Investors
From the data and trends above, here’s what you can do now:
- Create a cash buffer
Rising compliance, tax and maintenance costs are non-negotiable. You need liquidity for surprises.
- Stress-test hold costs before buying
Don’t just run “ideal” scenarios… build in worst-case scenarios including higher land tax, vacancy, repairs and regulatory changes.
- Focus on long-term resilience, not tax tricks
A portfolio built on sound property fundamentals will weather policy shifts better than one overly dependent on tax incentives.
- Cover your knowledge gaps
If you don’t fully grasp negative gearing, depreciation or CGT, seek a trusted accountant or mentor. Don’t wing it.
- Choose advisors aligned with high standards
Work with brokers and consultants who are transparent, accountable and aligned with bodies like PIPA.
Next Steps & How to Dive Deeper
- Listen to the full discussion on this topic in The Australian Property Investment Podcast, where the survey results were analysed in depth.
- Download the full PIPA Investor Sentiment Report to browse charts, breakdowns and sub-group analysis.
- Book a strategy session with a property investment adviser who understands the evolving regulatory and cost environment.
- Join future surveys and contribute your experience – the more data we have, the better the insights for all.
Investor sentiment serves as a directional compass. When the tide shifts, it alerts us well ahead of headline metrics. Right now, Australia’s property market is at an inflection point: many are reassessing, recalibrating, and repositioning.
If you’re an active or aspiring property investor don’t wait for trends to force your hand. Get informed, stay adaptable and lean on the right advice. And if you’d like me to help weave this into your content strategy or investor communications, just say the word, we’re happy to assist.
