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🎙️In this week’s episode, Dave, Cate and Mike unpack the eye-opening results from PIPA’s 2025 Annual Property Investor Sentiment Survey, now in its 11th year. As two of PIPA’s board members, Cate and Mike bring insider insights into what’s really behind the growing number of investor exits, and what it all means for Australia’s tight rental market.
🏠 The headline figure is striking: 16.7% of investors sold at least one property in the past year. This is the highest rate since the question was first introduced in 2022. Cate explains how rising costs, increasing legislative uncertainty, and fears over potential tax reforms are driving investors out just when rental demand is at record highs.
🌏 Dave turns the focus to the cities, asking whether Victoria remains the hardest hit. Mike reveals that while Melbourne’s investor sale rate climbed slightly to 22.1%, Brisbane (19.7%) and Perth (11%) aren’t far behind. It’s not just a Victorian problem; it’s national. Cate ponders the idea that some Perth investors might be finally “cashing out” after a decade of sluggish returns, showing how long-term fatigue and short-term gains can both influence investor behaviour.
🏡 Regional markets tell their own story. Cate shares that regional Queensland led the country with 15.8% of investors selling, (more than double last year’s figure), while regional Victoria recorded 7.9%, and regional NSW fell sharply to 5.5%. She suggests that recent interest rate cuts may have steadied nerves in NSW, while Queensland’s strong capital gains tempted investors to sell.
💰 Who’s buying these properties? Mike notes that 42% of sales went to other investors (up from 31% last year), but the rest were snapped up by first home buyers. It’s a bittersweet outcome: great for new homeowners, but another hit to rental supply as more properties leave the investor pool.
📉 Cate delves into the reasons for selling, citing rising compliance and insurance costs, the desire to reduce debt, and increasing frustration over complex rental reforms. Policy uncertainty looms large, with more than half of respondents saying they’d stop investing if negative gearing rules changed, and 35% saying they’d exit if CGT discounts were reduced.
⚠️ Mike raises another concern—communication breakdown. A massive 64% of investors were unaware of Victoria’s new vacant land tax, and 60% had only limited understanding of tenancy law changes. Even more startling, 10% said they’d never heard from their state government at all. This lack of engagement leaves investors navigating complex changes blindfolded.
🌈 But there’s a silver lining. Despite the challenges, confidence is on the rise—nearly 60% of investors believe the next 12 months present good buying opportunities. And in a surprise twist, Melbourne has reclaimed top spot as Australia’s preferred investment destination, leaping from 26% last year to 41%.
💡 Tune in to hear The Trio unpack this up-to-the-minute findings, their message to policymakers, and their rationale behind the findings. Listeners can request a copy of the survey results by contacting us.
And our gold nuggets!.....
Mike Mortlock's gold nugget: Mike makes the point about increasing tax losses since 2020/2021's tax year impacting the investor cohort significantly.
Cate Bakos's gold nugget: Cate puts her PIPA board member hat on and encourages our community of investors to participate in the survey next year.
Shownotes: https://www.propertytrio.com.au/2025/10/06/pipa-investor-sentiment-survey-2025/