Australia’s property investment landscape is changing, and the latest research suggests investors are becoming considerably more cautious about where, when and whether they invest.
The 2026 PIPA Annual Investor Sentiment Survey, released by Property Investment Professionals of Australia (PIPA), provides an interesting snapshot of investor confidence following changes to negative gearing and Capital Gains Tax, together with rising property holding and compliance costs.
For Master Advocates Real Estate Services, the findings are particularly relevant across the markets we service in Victoria, Northern New South Wales and South East Queensland.
The message for investors isn’t necessarily to leave property. It is that property selection, due diligence, cash-flow analysis and independent advice are becoming increasingly important.
More Property Investors Are Selling
PIPA found 18.3% of surveyed investors sold at least one investment property in the year to August 2026, compared with 16.7% in 2025, 14.1% in 2024 and 12.1% in 2023.
Importantly, these aren’t necessarily short-term speculators.
The most common holding period among sellers was 10 to 20 years, representing 37.1% of sellers. PIPA found increased holding and compliance costs were the most commonly identified reason for selling, followed by land tax and government charges.
This is particularly relevant when considering established investment properties in Melbourne and regional Victoria, where investors need to carefully assess not only potential capital growth but also land tax, rental compliance requirements, maintenance and the property’s ongoing cash-flow position.
Victoria Presents an Interesting Contradiction
Perhaps one of the most interesting findings in the report concerns Victoria.
For at least the fourth consecutive year, respondents identified Victoria as one of Australia’s least accommodating jurisdictions for property investors. Yet Melbourne remains the most popular investment destination among investors who are still looking to buy, with 38.7% nominating Melbourne as the best place to invest, ahead of Brisbane at 16.2% and Perth at 11%.
That apparent contradiction deserves attention.
Investors may dislike aspects of Victoria’s taxation and regulatory environment while still recognising potential opportunities created by Melbourne’s population, employment base, established infrastructure and property prices.
For investors considering Melbourne, Northern Melbourne or Western Victoria, this reinforces the importance of assessing individual properties rather than making decisions based purely on broader market sentiment.
A challenging market can still contain opportunities — but the right property at the right price matters.
South East Queensland Is Seeing Investor Movement
Queensland accounted for the largest proportion of investor sales in the PIPA survey at 37.1%, while Brisbane accounted for 23.7% of respondents who had sold at least one property. Regional Queensland also recorded significant selling activity.
At the same time, Queensland was ranked the second most investor-friendly jurisdiction, behind Western Australia.
For investors looking across South East Queensland, this again demonstrates why headline statistics need context.
Investor selling can potentially create opportunities for buyers, but the fundamentals of the individual asset remain critical: location, land component, rental demand, comparable sales, future supply, infrastructure, condition and purchase price all need to be considered.
Northern NSW Requires the Same Discipline
The survey found investor selling in Regional NSW increased to 9.3%, compared with 5.5% in 2025, while NSW’s overall share of investor sales increased significantly.
For Master Advocates’ clients considering Northern NSW, including the Northern Rivers and Far North Coast, this is particularly relevant.
Lifestyle markets can behave very differently from metropolitan markets. Local employment, migration, rental demand, tourism, insurance costs, environmental considerations and the supply of comparable properties can all influence investment performance.
Short-term investor sentiment can also be affected by regulatory changes. Byron Bay is a good example, with non-hosted short-term rental accommodation now generally limited to 60 days per year across most of Byron Shire, although designated areas of Byron Bay and Brunswick Heads are exempt from the cap and can operate for up to 365 days.
For investors, these changes reinforce the importance of understanding how a property can be used before purchasing. They may also encourage investors to look more closely at the potential benefits of the long-term tenancy market, including local tenant demand, achievable rents and the suitability of individual properties for permanent rental accommodation. Byron Shire Council has itself linked the short-term rental restrictions to its broader efforts to address local housing availability.
Buying simply because a region has performed strongly historically is not sufficient due diligence.
Government Policy Can Influence Housing Supply
The PIPA findings also sit within a broader discussion about the impact of government policy, taxation, regulation and housing supply.
A joint statement from the Real Estate Institute of Australia, Master Builders Australia, Housing Industry Association and Property Council of Australia recently released updated independent modelling examining Federal housing measures, including changes to negative gearing and capital gains tax arrangements, the $2 billion Housing Support Program and restrictions on SMSF limited-recourse borrowing for ordinary residential investment property.
The modelling, undertaken by Qaive and Tulipwood Economics, estimates that the combined measures could result in 10,700 fewer new dwelling starts between 2026–27 and 2029–30, rents approximately $10 per week higher, cumulative GDP around $1.05 billion lower and more than 4,700 fewer construction jobs.
These figures are industry-commissioned modelling rather than established future outcomes, and the Federal Government has put forward different expectations for the impact of its housing measures. Nevertheless, the debate highlights why investors should consider the potential effects of taxation, regulation, planning, construction capacity and government policy alongside traditional property fundamentals.
Cash Flow Is Becoming Critical
One of the report’s most significant findings is that 62.3% of surveyed investors reported being negatively geared or in negative cash flow, compared with 56% last year. Another 41.5% described their cash flow as tight, while 8.8% reported drawing on savings to cover shortfalls.
Meanwhile, 41.7% reported operational cost increases of between 11% and 20% over the previous year.
This highlights why investment decisions should extend well beyond anticipated capital growth.
Investors should understand realistic rental income, property management costs, insurance, maintenance, land tax where applicable, compliance expenditure, financing costs and potential future capital expenditure before committing to a purchase.
Independent Advice Matters More in a Changing Market
Interestingly, 96.1% of respondents believe providers of property investment advice should have formal training or education, while 77% said PIPA membership and adherence to a code of conduct would positively influence their choice of property professional.
At Master Advocates, we believe this reflects something increasingly important.
The role of an experienced Buyers Advocate isn’t simply to find a property.
Sometimes our advice may be to negotiate harder, conduct further due diligence, reconsider the asset — or not purchase at all.
With investors reassessing their portfolios across Victoria, Northern NSW and South East Queensland, successful property investment is increasingly about understanding risk as much as identifying opportunity.
Markets change. Government policy changes. Costs change.
The fundamentals of buying the right property, in the right location, at the right price remain just as important as ever.
Where we serve:
• Victoria: Melbourne (Northern & Western specialists), Metro, Coastal & Regional – Victoria-wide
• New South Wales: Byron Bay, Byron Shire, Northern Rivers, Hinterland & Far North Coast
• Queensland: Brisbane, Gold Coast & South East Queensland (extended partner network)
Websites:
www.masteradvocates.com.au
www.byronpropertysearch.com.au
Consultation Booking: https://calendly.com/masteradvocates