25/05/2026
VIEWPOINT | Property Demand, Investor Confidence and Housing Supply
There is still strong demand for quality property in great locations.
Across Melbourne’s established inner-city and inner-eastern markets, well-positioned homes, quality school zones, lifestyle suburbs and tightly held family locations continue to attract genuine buyer interest.
People are still transitioning through property. Families are upsizing, downsizing, relocating and planning for the next stage of life. That part of the market remains active.
Investment confidence, however, is another story.
In Victoria, many investors and property owners are already navigating increased land tax, rising holding costs, heavier compliance obligations and ongoing regulatory change. At a Federal level, proposed tax changes are creating further uncertainty around investment, capital gains and long term wealth creation.
This matters because private investment is deeply connected to housing supply. It helps provide rental accommodation, supports development activity, underpins construction employment and gives many Australians, including small business owners and younger generations, a pathway toward long term financial security.
When investor confidence weakens, decisions are delayed, capital becomes more cautious and supply becomes harder to deliver.
The consequences are eventually felt across the broader community, impacting renters, families, future buyers and business confidence alike. Australia needs more housing, not fewer people prepared to invest in it.
Policy settings should encourage responsible long term investment, support housing supply and provide stability at a time when confidence is already fragile.
Prosperity is not built by discouraging participation.
It is built by creating confidence to invest, build, employ and plan for the future.
As a real estate business working closely with buyers, sellers, investors and families every day, this is our considered market view.
If you would like perspective on current market conditions, investment sentiment, property strategy or the value and positioning of your property in today’s changing climate, feel free to reach out to the team at Clements International for a confidential conversation.
