New sentiment report finds finance access, not confidence, is the key issue reshaping investor behaviour in 2026
Experienced property investors are approaching the second half of 2026 with broadly stable personal finances but heightened caution about market conditions, according to the inaugural Australian Investor Sentiment Report from Right Property Group (RPG).
Borrowing capacity emerged as the dominant concern, cited by 52% of property investor respondents as their single greatest challenge.
A further 43% said their borrowing power had declined over the past year. RPG noted that borrowing capacity outranked the next four challenges combined.
"Investors are not losing faith in property, but they are losing access to finance — predominantly due to the recent taxation policy changes," said Victor Kumar (pictured top left), director at Right Property Group. "The fundamentals remain solid, but borrowing has tightened so sharply that seasoned investors are reshaping their strategies across the board."
Fifty-four percent of respondents expect property prices to fall over the next 12 months. Kumar pointed to movement already visible at the prestige end of the Sydney market, where properties priced above $2.5 million have recorded price reductions.
"Our recent acreage property purchase illustrates this shift as we picked up the property for $3.6 million, which was significantly down from the $4.5 million list price earlier in the year," he said.
RPG co-founder Reshmi Kumar (pictured top right) said similar softening is occurring in more affordable segments. "For example, townhouses in Logan, Ipswich and Beenleigh in Greater Brisbane have softened by around 10% in recent months, which is creating new entry points for investors who can secure finance," she noted.
"There is no question that the ripple effects are national with WA-based investors now pivoting to Melbourne because of its relative affordability and a wider spread of sub-$700,000 opportunities."
Government policy now ranks alongside personal circumstances as a primary driver of investor decision-making, with 34% naming it their leading consideration. By contrast, interest rates registered as a concern for just 2% of respondents.
"This is not a crisis of confidence, but it is a crisis of conditions," Reshmi Kumar said. "Investors feel financially secure, but they feel constrained by policy settings and the new lending rules. They're not asking whether property still works, but they are asking how to keep moving under the new settings."
The report also identified a shift in preferred asset types. Commercial property was nominated by 23% of respondents as their preferred asset class, second only to houses.
"For a residential-focused audience, this result is striking and reflects the search for yield, stability, and alternative borrowing pathways given the changes to negative gearing and capital gains tax recently," Victor Kumar said. "Despite the headwinds, investor activity remains real, with many continuing to transact.
"Fundamentally, the survey shows us that investors are currently squeezed, but they are not spooked. This means that the next phase of the market will be shaped by those who reset their strategy deliberately rather than reactively."
The report also noted a divergence in sentiment by gender. Among women respondents — a smaller portion of the sample — 76% reported lower confidence compared with the prior year, against 43% of men.
"Women in this sample are just as experienced as the men, but their goals often skew longer-term," Reshmi Kumar said. "Policy uncertainty can hit harder when your planning horizon stretches over the decades."
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