Why Investor Sell-Offs Could Be a Golden Opportunity for New Buyers

A recent PIPA survey shows a record 16.7% of property investors sold at least one property in the last year (up from 14.1% in 2024 and 12.1% in 2023). Many long‐term investors are offloading homes as rising holding costs (land tax, compliance fees) and looming policy changes make ownership feel riskier than the reward. This trend is shrinking the rental pool – only 42% of sold homes stayed as rentals (37% were bought by owner‐occupiers and 25% by first-home buyers), but it also means more properties are coming on the market for buyers. In effect, “once a property leaves the rental market, it rarely returns”pipa.asn.au, so this wave of selling is structural. As buyer’s agents at Prowealth Properties, we see a silver lining: more homes for owner-occupiers and new investors to purchase, often with motivated sellers keen to negotiate.

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What this means for buyers: The investor exodus is creating windows of opportunity:

• More choices on market: Investors selling means extra stock. For example, in high-exit markets like Queensland and Victoria, roughly 35.5% and 30% of investors sold last year. More listings mean home‑buyers (and first‑time buyers) can grab properties that were once investment-only.
  
  

• Strong negotiation power: Sellers looking to reduce debt or exit quickly often price more competitively. We find that motivated sellers give our buyers more negotiating leverage – a real plus in today’s market.
  
  

• Rising rental yields: With fewer rentals available, tenants are competing for each home. As the rental supply tightens (only 42% of sold homes remained rentals), rental rates and yields are likely to climb. Buyers who plan to rent out their purchase can benefit from this stronger demand.
  
  

• Regional hotspots: Melbourne and Brisbane investors are considered among the most active sellers (22.1% and 19.7% sold in 2025). Yes, it is because the suburbs in these cities are seeing more seller-friendly conditions. On the contrary, Sydney has seen only 6.3% of investors selling, so opportunities in Sydney may remain tighter. Meanwhile, Perth recently entered the top-three selling markets (11%). These differences guide our strategy: for example, we advise buyers on where to enter now (e.g. Melbourne, Brisbane) versus where competition stays stiff (e.g. Sydney).
  
  

• Policy pitfalls: Proposed tax changes add uncertainty. Over half of investors say they’d quit if negative gearing rules change, and 35% would leave if the CGT discount is cut. And, the main thing is that the buyers need expert guidance on how such reforms affect borrowing power and investment strategy. That’s why we keep clients informed about land tax hikes and compliance costs so they can buy with confidence even as regulations shift.
  
  

At Prowealth Properties, we’ve seen these patterns first-hand. Our clients benefit from our local market expertise and off‑market networks. This helps them “cut through the noise” and find great deals when others are exiting. We advise buyers to act sooner rather than later. This isn’t just a blip; it’s a structural change. As more investors step back to reduce debt and costs, strategic buyers can step in to build wealth long-term.

Ready to take advantage? As buyer’s agents, Prowealth Properties will guide you through this shifting market. Speak with our team today to check your borrowing power and start your shortlist. Call us on +61 433 853 248 or book a free consultation to discuss your goals. Our experts can help you negotiate the best price and set you up for success as Australia’s investor shakeout plays out.