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Investor sales rise as confidence falls 79%
Just 7.6 per cent of investors now believe it’s a good time to sell, down from 36 per cent last year, but 18.3 per cent have sold in the past 12 months as rate rises and tax changes bite.
New data has shown that the proportion of investors confident in selling has plummeted by 79 per cent over the past year at the same time that sales have risen on the back of four interest rate rises and major tax changes.
According to the Property Investment Professionals of Australia’s (PIPA) Annual Investor Sentiment Survey 2026, just 7.6 per cent of investors said now was a good time to sell, down from 36 per cent in 2025.
At the same time, sales have been on the rise, with 18.3 per cent of respondents having sold at least one investment property in the past 12 months, up from 16.7 per cent in 2025 and 14.1 per cent in 2024.
PIPA chair Cate Bakos said while investors still saw property as a long-term asset, higher holding costs, affordability pressures and policy changes were forcing some to reassess.
She said higher interest rates have reduced borrowing capacity and increased ownership costs, while tax changes have created uncertainty around future returns.
“Together, they’ve encouraged many investors to delay decisions, scale back plans or adopt a wait-and-see approach,” she said.
“In many cases, increased selling reflects changing financial circumstances and sentiment rather than a belief that it’s the ideal time to exit.”
Bakos added that investors’ lack of confidence in selling in the current market was likely due to a desire to hold for longer or wanting to wait for better conditions.
“While many remain committed to property because they believe in the long-term fundamentals, others are looking for greater certainty around interest rates, policy settings and market conditions before making major decisions,” she said.
The data showed that of the vendors who have sold this year, 51.6 per cent sold at least one property to an owner-occupier, up from 37 per cent in 2025.
Meanwhile, 42.3 per cent sold at least one property to another investor, similar to last year, but up from 31 per cent in 2024.
Investor sales surge in most capitals
Amid the overall rise in investors putting their properties on the market this year, Brisbane and Melbourne continued to lead the charge in investor sales.
In Brisbane, 23.7 per cent of survey respondents sold at least one property this year, up from 19.7 per cent last year, while Melbourne recorded 19.6 per cent, down slightly from 22.1 per cent.
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Sydney showed a sharp turnaround, with 13.4 per cent of investors selling compared to just 6.3 per cent in 2025.
In contrast, just 7.2 per cent of Perth investors sold in the Western Australian capital, down from 11 per cent last year.
New investor mortgage lending falls
The findings came as data from Loan Market Group showed appetite for new mortgage lending fell 24 per cent since January, in response to the tax changes and four interest rate rises.
Bakos said a growing number of investors were reconsidering future investment plans, including delaying purchases, reassessing their strategies and redirecting capital elsewhere.
"Our survey found that many investors were already indicating they would delay purchases, scale back acquisition plans or look beyond residential property for future investment opportunities,” she said.
Bakos said that when investors lost confidence in the policy environment or future returns, they tended to stop borrowing and wait on the sidelines.
“I’m also not surprised that the investor lending data has followed the sentiment survey findings by a few months, because the data reporting involves time lag,” she said.
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