Sales of investor-owned property in Queensland are on the rise as interest rates rise and landlords flee

Real estate investors in one state are “over it” as they bow out of the market en masse amid rising interest rates and higher property taxes.

According to research from PropTrack, sales of investor-owned property in Queensland rose to almost a third of all homes sold in June.

It comes as owners across Australia face skyrocketing property taxes and speculation over rent caps, putting pressure on their high mortgage payments.

Property sales from owners and investors in Queensland grew eight percent in just one month – to 29.5 percent of all home sales, higher than other states.

PropTrack statistics also revealed that more than 21 percent of landlords have left the market following the introduction of land tax laws in the state.

Ray White Marsden’s Jett Jones said three clients told her this week they are ‘over’ the high interest rates and want to sell

told Jett Jones of Ray White Marsden in Logan News Corp three clients called her this week to sell their investment properties and said, “I’m not quoting; “We’re done with it, the interest is too high.”

She added that over the past month, landlords have been asking questions about listing their properties – and many of them are long-term investors.

PropTrack senior economist Paul Ryan said statistics showed that investors are reacting to the current market.

“It may begin to suggest, with interest rates rising significantly…that financial pressures on investors, or even the expected cash flow in the period ahead, is driving them to exit their investments,” Ryan said.

What is worrying is that investor sentiment is very bad. Investors are a big way to build homes and the long-term solution to the rental crisis. We need a really strong investor component in the market to bring in new supply.”

But he said the amount of new shares in the market could present good opportunities for other would-be investors to buy up.

“Because investors and owner-occupiers often compete with each other for the same property, that could be positive for buyers in the coming period,” said Ryan.

There are other factors dazzling landlords, such as concerns about the rental crisis and property tax increases.

PropTrack senior economist Paul Ryan said statistics showed that investors are simply reacting to the current market

The Queensland government has introduced new legislation that prohibits landlords from increasing rent more than once a year.

It also brought in new land legislation in June 2022 that taxed landlords based on their entire Australian property portfolio rather than what they owned in Queensland.

But the government abandoned the proposals in September after fierce opposition.

Mike Mortlock, managing director of MCG Quantity Surveyors, said the government’s actions have forced investors to get rid of their shares.

He said the government should focus more on the value of investors providing housing to tenants.

Meanwhile, Victorian landlords are also selling up their stock, with research from PropTrack showing that 29 percent of June sales were owned by investors.