Australia’s rental market faces fresh strain as more property investors leave the sector, citing rising costs, uncertain policies, and looming tax changes.
The latest Annual Property Investor Sentiment Survey, released today by the Property Investment Professionals of Australia (PIPA), shows that 16.7% of investors sold at least one property over the past year. That figure is higher than the 14.1% recorded last year and 12.1% in 2023, marking the steepest level of investor sales since the question was introduced in 2022.
When first asked in 2022, about 17% of investors said they had sold at least one property in the previous two years, equivalent to 8.5% per year. PIPA Chair Lachlan Vidler said the latest results point to more than just a continuation of that trend. “This isn’t just a continuation of last year’s trend – it’s an acceleration,” he said.
“We’re seeing a growing number of long-term investors walking away, and the implications for renters are severe. The private rental market is losing stock at a time when demand is surging, and policy uncertainty is only making things worse.”
Queensland once again led the country in investor exits, with 35.5% of respondents selling at least one property, up from 33.4% the year before. Victoria followed at 30%. In contrast, New South Wales saw a sharp fall to 11.8%, down from 25.4% in 2024.
At city level, Melbourne recorded 22.1% of investors selling at least one property compared to 18.4% the year before. Brisbane followed at 19.7%, up from 16.3%, while Perth entered the top three for the first time at 11%. Sydney dropped to 6.3%, down from 10.2%. Regional Queensland saw the sharpest jump, with 15.8% of investors selling, more than double the 7.6% in 2024.
Investor sentiment towards federal tax proposals is also stark. When asked whether they would continue to invest if negative gearing were altered, 53% said they would stop, with another 25% unsure. Only 22% said they would continue under a revised policy.
If the capital gains tax discount were reduced to 25% after 12 months, 35% of investors said they would leave the market, while 29% were undecided and 36% would continue.
The survey paints a picture of mounting investor unease, with potential consequences for the availability of rental housing across the country.
Support independent community journalism. Support The Indian Sun.
Follow The Indian Sun on X | Instagram | Facebook
Support Independent Community Journalism
Dear Reader,The Indian Sun exists for one reason: to tell stories that might otherwise go unheard.
We report on local councils, state politics, small businesses and cultural festivals. We focus on the Indian diaspora and the wider multicultural community with care, balance and accountability. We publish in print and online, send regular newsletters and produce video content. We also run media training programs to help community organisations share their own stories.
We operate independently.
Community journalism does not have the backing of large media corporations. Advertising revenue fluctuates. Platform algorithms change. Costs continue to rise. Yet the need for credible, grounded reporting in a multicultural Australia has never been greater.
When you support The Indian Sun, you support:
• Independent reporting on issues affecting migrant communities
• Coverage of local and state decisions that shape daily life
• A platform for small businesses and community groups
• Media training that builds skills within the community
• Journalism accountable to readers
We cannot cover everything, but we work to cover what matters.
If you value thoughtful reporting that reflects Australia’s diversity, we invite you to contribute. Every donation helps us maintain the quality and consistency of our work.
Please consider making a contribution today.
Thank you for your support.
The Indian Sun Team
