The 2024 PIPA Annual Property Investor Sentiment Survey, conducted in August 2024, gathered insights from both current and aspiring property investors across Australia. The survey aimed to capture the prevailing mood, confidence levels, and key trends shaping the country's property investment landscape.
The 2024 PIPA Annual Property Investor Sentiment Survey, conducted in August 2024, gathered insights from both current and aspiring property investors across Australia. The survey aimed to capture the prevailing mood, confidence levels, and key trends shaping the country's property investment landscape.
Where do investors believe the best property investment locations are in Australia right now?
Savvy investors are increasingly recognising Melbourne's strong potential for future capital growth, despite the city having experienced the most significant market downturn among all capital cities over the past year.
Table: Where are the best locations to invest for property investors in Australia right now? (Source: PIPA)
Location | % Results |
Melbourne | 26% |
Perth | 25% |
Brisbane | 18% |
Regional Qld | 9% |
Adelaide | 8% |
Sydney | 5% |
Regional NSW | 3% |
Regional VIC | 2% |
Regional WA | 2% |
Canberra | 1% |
Darwin | 1% |
Hobart | 1% |
In last year’s survey, Perth was highlighted as the capital city with the best investment prospects, a prediction that proved accurate, as property prices in the Western Australian capital have led the market over the past year. Brisbane's third-place ranking in this year’s survey marks a sharp decline, as it was previously the most favoured investment destination, with 54% of respondents ranking it highest back in 2021.
The top reason investors cited for choosing these locations was their strong long-term capital growth potential (57.5%), followed by robust population growth (52.6%) and the appeal of investing in major capital cities (47.9%).
Other key findings
Least Accommodating States for Investors: Victoria remains the least accommodating state for property investors, a position it held last year, followed by the ACT and NSW.
Impact on Rental Supply: The reduction in rental supply is most pronounced in major capital cities, with investors selling properties in Brisbane (26%), Melbourne (21.7%), and Sydney (14.9%).
Reasons for Selling Investment Properties: Key reasons included increased general holding and compliance costs (44.1%), higher land taxes and government charges (35.4%), and reducing total debt exposure (32.9%).
Shift in Investor Activity: There was a rise in the number of investors selling properties (14.1%) and a decline in those purchasing (24.1%) compared to last year.
Increased Costs for Investors: Over 70% of investors reported paying an additional $10,000 to $60,000 annually in mortgage interest and other costs compared to the low-interest period during the pandemic.
Leading Investment Locations: Top locations for purchases in the past year were Brisbane (24.4%), Perth (21.1%), and Regional Queensland (17.8%).
The future outlook for property investors
Property investors remain generally optimistic, though fewer are looking to buy compared to previous years. Around 46% of respondents believe it's a good time to invest, a decline from 55% last year and 62% in 2021. Regardless, it is clear that investors will continue to target Australia's best property investment locations over the next 12 months.
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Note: This is general advice and does not take into consideration your objectives, situations or needs. Please consider if this advice is suitable for you and your circumstances and speak to a professional before making any financial decisions.
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