Investors regard Melbourne as ‘best place to buy’ despite recent sale – realestate.com.au

Victoria is ranked as the worst state to be consecutive real estate investors for a second year, but that can change as an overwhelming share, see options in Melbourne.

A new survey carried out by the investment professionals of Australia (PIPA) in August of this year showed that most investor sales took place in Melbourne, in which 22.1% of respondents sold at least one real estate in the city in the past year, an increase of 18.4% in 2024.

Brisbane closely followed 19.7%, an increase of 16.3%. Perth entered the top three for the first time, with 11%of the sale of investors, while Sydney saw a remarkable decrease to 6.3%, a decrease of 10.2%.

Melbourne was also crowned for a second consecutive year as the least consecutive state for real estate investors, in which the state was seen as “hostile to investments”, with “punitive or overly restrictive” policy. The ACT and NSW complete the top three.

PIPA chairman Lachlan Vidler said that Victoria continued to see raised levels of the sale of investors.

“The combination of rising land tax, new levy in the vacancy and current rental reforms creates a climate of uncertainty. Many investors simply decide that it is no longer worth the risk or costs to keep ownership in the state.”

But years of lagging price growth – and drawing that Melbourne is about to turn around – lures many back inside.

About 41% of investors now consider Melbourne as the best place to buy at the moment, strong of 26.3% last year.

Source: PIPA Annual Investor Sentiment Survey 2025

---

Good long -term perspectives in the long term was the main reason for supporting investor optimism (70.3%), followed by good population growth (58.5%) and an important capital city (52.1%).

Seasoned investors unload the properties of the highest percentage in four years

The survey, now in his eleventh year, offers a snapshot of the investor spsy of the nation.

But despite the bags of optimism, it discovered that investors discharge steadily rental houses, which fundamentally reforms the market, with fewer houses available for tenants and increased pressure on affordability.

The research showed that investor sentiment is intensifying around the sale. This year 36% of the respondents said it was a good time to sell – an increase of 29% last year.

The study showed that 16.7% of investors considered selling at least one investment property during the year to August, an increase of 14.1% in 2024 and 12.1% in 2023.

Seasoned investors discharge their properties. Photo: Getty

---

The majority of the 854 investors who participated in the survey that sold a property in the past year were experienced investors.

More than half of the real estate investors surveyed had held their property for at least five years, as a result of which the total exposure to debts, rising compliance costs, real estate management costs and minimal standards had blamed the fault of the investor market. The heavy weight of bureaucracy and policy effects, such as the threat of negative gear changes, was also blamed.

Pipa says that the findings underline the vulnerability of investors’ trust in the light of potential federal reforms.

The survey showed that only 42% of the properties sold were purchased by other investors, the rest
were absorbed by owner-realmans (37%) and first-home buyers (25%).

Mr. Vidler says that the implications for tenants are serious.

“As soon as a home leaves the rental market, it rarely returns. We look at the slow dismantling of Australia’s rental facility, and tenants pay the price due to rising rents and reduced availability,” he said.

“The private rental market loses the shares at a time when the demand is increasing, and policy uncertainty only makes it worse. This shift is structurally, not temporary.

“If this trend continues, we will see even greater pressure on the rental market and tenants will be the victims.”

Reasons to leave

The reasons for the exodus of investors include the constant shift of the policy environments by different government levels, often framed as tenant -friendly reforms, which, according to the survey, steadily erodes investor confidence and limiting the rental properties of the rental properties.

Almost half of the respondents said it was the growing negative public perception of real estate investors, who have been labeled ‘Greedy’ and ‘Destroyers of the Housing Market’ in several media stories in recent years.

Government interference has also been a problem, including a lack of clear communication of governments on rental reforms. A stunning 64% of the respondents were not aware of Victoria’s new empty housing tax. And about 60% of the respondents said that they only had moderate or limited knowledge of changes in rent laws throughout Australia, the report revealed.

Mr. Vidler added that the potential for changes in negative acceleration regulations would have a further influence on the market.

“The mere suggestion of changes in negative acceleration or power gain tax is sufficient to destabilize the sentiment of investors. These are not problems with the edge – these are mainstream fears of thousands of everyday Australians who offer rental homes.”

He wants to see that investors listen, provides clarity when the legal changes are on the road, and have introduced fewer reforms of knee-shock that have a negative influence on investors.

The buyer of the buyer and Pipa Victorian administrative director Cate Bakos.

---

Pipa Victorian administrative director and lawyer of the buyer Cate Bakos also complains a lack of consultation with real estate investors by the government.

“None of this is a shock for me. We have eroded our rental pool, and now the government wants to take a step back and offer housing, but they cannot do it fast enough to keep up with the demand,” said Mrs. Bakos.

“The government must understand that the task of providing rental properties has not been with the State in the last five decades. There was clearly a decision by the state government to have the private market rental properties offer.”

“Now that the private market has started as the government wanted, they have to consult with real estate investors so that they can absorb shocks in the market,” said Mrs. Bakos.