The parts of the market now grabbing investors’ attention

A changing market has reset the playing field for investors, with focus shifting to the areas and types of properties that stand to benefit most from new tax settings.While overall investor demand has cooled this year following interest rate rises and tax changes, many investors are now flocking towards new homes and high-yielding rental properties, according to the latest PropTrack Terri Scheer Investor Report.The report, which analysed the evolving investor landscape and how market conditions have shifted in the past year, found that investors have pulled back more than owner-occupiers recently. This followed a period in which the share of investor loans was at or near record highs in many parts of the country.But according to report author and realesate.com.au senior economist Angus Moore, not all investors are exiting the market, and many are changing their tactics in response to the tax changes introduced in the federal budget this year. Source: PropTrack Terri Scheer Investor Report 2026The controversial changes replaced the 50% capital gains tax discount with inflation indexation and applied a minimum 30% tax rate on capital gains. Negative gearing was abolished for establis...