PropTrack-Terri Scheer Investor Report – 2026

After a very strong 2024 and 2025, investor activity has pulled back.Interest rate increases started the softening. This was accelerated by the May federal budget, which saw the most significant changes to housing taxes in more than two decades.These changes for future purchases remove negative gearing for investments in established residential properties.In addition, changes to how capital gains are taxed for certain investments have changed the landscape for property investors, and investors are responding.Investor demand has softened following interest rate rises and budget tax changes, but some investors are shifting focus to new builds and high-yield properties. Picture: GettyThe budget changes – which have the effect of making low-yielding, loss-making investment properties less attractive – have seen investor demand shift towards higher-yielding rental properties.These investments are more likely to provide positive cash flow, rather than relying on home price growth. Investor demand also appears to have shifted towards new homes, which are carved out from the budget changes.Read the full report here: PropTrack-Terri Scheer Investor Report - 2026Rental market conditions rema...