Nearly one in five investors sold this year: the hold or sell numbers
18.3% of investors sold at least one property in the year to August 2026, up from 16.7%. The top reason was holding costs. Before you sell, know what you give up: a property held before 12 May 2026 keeps negative gearing until it is sold, and that protection cannot be bought back.
The figure comes from the yearly Investor Sentiment Survey by the Property Investment Professionals of Australia. Its chair, Cate Bakos, did not dress it up: "Last year, investors told us they would walk away if these reforms became law. This year's survey is the first national read by PIPA since the changes were legislated, and it shows a lot of them are doing just that".
More than half of those sales went to owner occupiers. Each of those is a rental home that left the rental pool.
We understand the urge. Rates have risen three times this year, values are falling, and the tax rules changed. But selling is the one move you cannot undo, so it deserves a slower look than buying does.
Key facts, year to August 2026
- Investors who sold at least one property: 18.3%, up from 16.7%
- Top reason for selling: holding and compliance costs, 37.1%
- More than half of the sales went to owner occupiers
- Queensland made up 37.1% of investor sales, Victoria 29.9%, New South Wales 22.7%
- New South Wales nearly doubled its share, from 11.8%
Source: PIPA Investor Sentiment Survey, reported by Real Estate Business, 15 September 2026
Where the sales are
| Share of sales | |
|---|---|
| Queensland | 37.1% |
| Victoria | 29.9% |
| New South Wales | 22.7% |
Source: PIPA Investor Sentiment Survey 2026, reported by Real Estate Business
Queensland leads. That fits the price data: Brisbane values are more than double where they were ten years ago, so there are large gains there to take.
What you give up when you sell
This is the part the headlines skip. Under the law passed in June, existing owners got two protections. Both are attached to the property. Selling ends the first and cashes in the second early.
| If you keep it | If you sell and buy an established home | |
|---|---|---|
| Negative gearing | Continues, in future years, until you sell | Ends on 1 July 2027 for the new property |
| Capital gain to 1 July 2027 | Keeps the 50% discount when you sell later | Taxed now, with the 50% discount |
| Capital gain after 1 July 2027 | Indexed for inflation | Indexed for inflation |
| Buying costs | None | Stamp duty and fees again |
Read the first row twice. If your property runs at a loss and that loss lowers your tax, you can keep that arrangement for as long as you own it. Swap it for another established home and, from July 2027, the loss on the new one waits instead of reducing your tax.
The capital gains change does not push you to sell either. Treasury built the rules so that gains up to 1 July 2027 keep the old discount whenever you sell. In its own words there is "no incentive to buy or sell assets before this date".
When selling is still the right call
Tax protection is worth nothing if the property is sinking you.
You cannot fund the shortfall. If rate rises have turned a manageable gap into one that is draining your savings, that is a cash problem, and tax rules do not fix cash problems.
The property itself is poor. Weak rent, high repairs, a location that has stopped growing. A bad asset with a tax break is still a bad asset.
You need the money for something better. Paying off the loan on your own home is a return no tax change can touch.
Your gain is large and your income is about to drop. From July 2027 a 30% minimum tax applies to real gains. Selling in a low income year will save less than it used to. See capital gains tax after the discount.
How we would decide
Write down three numbers.
- What it costs you each month to hold, after rent and after tax, at today's rate.
- What you would walk away with, after the agent, the loan and capital gains tax.
- What that money would earn elsewhere, honestly.
If number one is bearable, the new rules lean toward holding. If it is not, sell without guilt, and do it before the pressure makes the decision for you.
Land tax is often the holding cost people forget to count. It varies sharply by state and by how you own the property.
The detail of the law is in negative gearing is now law.
Frequently asked questions
Should I sell my investment property in 2026?
It depends on your cash flow, not on the headlines. A property you held before 12 May 2026 keeps negative gearing until you sell, and its gain to 1 July 2027 keeps the 50% CGT discount whenever you sell. Selling ends the negative gearing and brings the tax on the gain forward. If you can afford the holding costs, the tax rules now favour keeping it.
How many property investors are selling?
18.3% of investors sold at least one property in the year to August 2026, up from 16.7% the year before, according to the Property Investment Professionals of Australia survey.
Why are investors selling their properties?
Holding and compliance costs were the most common reason, named by 37.1% of those who sold. Higher land tax and government changes came next.
Do I lose negative gearing if I sell and buy another property?
On the replacement, yes, unless it is a new build. An established home bought after 12 May 2026 cannot be negatively geared from 1 July 2027.
Sources
- Real Estate Business, 1 in 6 investors fleeing residential market, 15 September 2026, reporting the PIPA Investor Sentiment Survey
- Treasury, Negative Gearing and Capital Gains Tax Reform fact sheet, Budget 2026 to 27
- Cotality Home Value Index, 1 September 2026
This is general information, not tax or financial advice. Selling has tax consequences that depend on your own position. Speak to your accountant first.