If you’ve been watching the property market this year, you’re not alone. Over 800 investors from across Australia recently shared their thoughts on what’s happening in the market – and what’s shaping their buying and selling decisions. The results offer a fascinating snapshot of the challenges, opportunities, and shifting priorities for property investors in 2025.
Rising Costs and Government Policies Are Top Concerns
Unsurprisingly, rising government taxes and tighter regulations are weighing heavily on investors’ minds right now. Alongside increasing interest rates and the ever-present cost-of-living pressures, many investors are having to rethink how they manage their portfolios.
One trend that’s clear: more investors are looking to reduce their debt. Selling properties to ease financial pressure has become common, with nearly one in six investors having sold a property in the past year. It’s a sign that affordability and cash flow management are front of mind for many.
Flipping: Still Around, But Not As Easy
Flipping homes for a quick profit has long been a go-to strategy, but investors say it’s getting tougher. Margins have shrunk, and finding “perfect flips” is now a challenge. Instead of major renovations, many are opting for quick cosmetic fixes to keep turnaround times short and budgets tight.
Despite the squeeze, flipping isn’t dead – it’s more about working smarter with data and technology. Savvy investors are targeting suburbs on the rise – places with new infrastructure, school catchment changes, or upcoming government projects – to get the best returns. Online auctions and digital staging are also helping to keep the pace brisk.
Regional Markets: A Mixed Bag of Opportunity
When it comes to regional hotspots, the picture isn’t all clear-cut. Ipswich and Adelaide have seen mixed interest, though Ipswich is standing out thanks to government spending and affordable prices. Meanwhile, regional Victoria and Queensland continue to draw investors looking for affordability and solid future growth.
It’s clear that lifestyle factors are playing a bigger role too—investors like buying in regional areas that offer a balance of work, lifestyle, and accessibility.
Melbourne Is Back on the Radar
After a shaky period, Melbourne is once again capturing investor optimism. Population growth, infrastructure projects, and a rebound in demand for apartments and units are boosting confidence that the city is a solid choice for long-term capital growth.
Experts expect Melbourne property prices and rents, especially for units, to grow steadily over the next five years, making it an attractive market for those looking beyond short-term gains.
What Kind of Properties Are Investors Focusing On?
There’s a definite shift towards properties that deliver both steady cash flow and potential growth. Townhouses and apartments are increasingly popular as affordable entry points, particularly in regional centres.
Boutique, low-rise apartments on the Gold Coast are a standout for many investors. They offer attractive rental yields – often between 5.3% and 5.9% – and tap into ongoing migration and infrastructure growth driving demand.
The Supply and Demand Imbalance
One big driver of rising prices and rental shortages across the country is simple: we just aren’t building enough new homes, especially in our major cities. This supply shortage keeps vacancy rates low, rents climbing, and makes it harder for new buyers to jump in.
For investors, this means high demand for quality rental properties but also the need for careful property selection to ensure long-term viability.
A Word of Caution on Depreciation Reports and Due Diligence
An interesting warning came out around depreciation reports. Some quantity surveyors are producing these reports without inspecting properties in person, which can lead to inaccuracies and cost investors money in the long run.
It’s a reminder that thorough due diligence is non-negotiable – especially in places like Victoria where contracts and minimum property standards can be tricky.
Looking Ahead to 2026
Despite some headwinds, nearly 60% of investors believe 2026 will be a good year to buy residential property. Many are optimistic about potential interest rate cuts and an improving market outlook.
For investors who approach the market with careful research and a focus on properties with strong rental appeal and growth prospects, the next 12 months could bring solid rewards.
What This Means for You as an Investor
- Stay on top of your debt. For many investors, trimming down liabilities is a smart defensive move in uncertain times.
- Think beyond the metro markets. Regional areas, including Ipswich and parts of Victoria and Queensland, continue to show promise.
- Use data and tech. Whether flipping or holding long-term, making informed decisions with market insights is more important than ever.
- Look for properties that deliver both income and growth. Townhouses, apartments, and boutique developments fit this bill right now.
- Don’t skimp on due diligence. Verify depreciation reports, inspect properties thoroughly, and understand local contracts and regulations.
- Prepare for opportunity in 2026. Keep an eye on interest rates, new infrastructure, and market shifts to time buys well.
This 2025 investor survey paints an evolving picture of prudence, optimism, and adaptive strategies. Investors who stay informed and flexible – and who focus on building resilient portfolios – are best placed to navigate the complexities of today’s market and seize the opportunities ahead.
For expert advice tailored to your investment goals, whether you’re looking to buy your first property or diversify an existing portfolio, BNH is here to help with insights grounded in the latest market trends.