If you have opened a newspaper or scrolled through your phone lately, you could be forgiven for thinking the property market is on the edge of a cliff. Headlines about changes to capital gains tax and negative gearing have been relentless, and many rental property owners are worried about the value of their investment.
As a property manager, one of the most valuable things you can do right now is help your clients separate the noise from the reality. The following information will help you communicate a balanced message:
1 The sales market and the rental market are not the same thing
Much of the current media coverage is focused on property transactions: what buyers will do, how investor sentiment will shift and whether prices will fall. What receives far less attention is the rental market, which is telling a very different story.
Australia is still dealing with a shortage of rental stock. Supply has not kept pace with population growth, immigration, and household formation for years, and vacancy rates in most capital cities, including Melbourne, remain at historically low levels of around 1.5%.
If investors respond to tax changes by selling, they may free up cash, but they are making things easier for other property owners. Fewer investor-owned rentals means fewer homes available to rent. This tightens supply further, which will push rents higher as renters compete over a smaller number of properties.
For property owners who stay in the market, the medium-term rental outlook is arguably stronger than it has been in some time. While they may lose money in capital gains, it’s likely the gap between their loan repayments and their rental income will shrink in the meantime.
2 Supply remains low
Headlines are pointing to price discounts on property sales, but these discounts are with ‘peak prices’ in mind.
Anyone who purchased a home or investment property prior to 2020 should have significant equity and still profit from a sale. Owners who are nervous about prices can be reminded conditions are ‘softening’, but not in freefall.
For investors, there’s no need to sell in a hurry based on headlines or short term market activity. It’s better to review overall strategy and look for the opportunities which improve stability and predictability, such as locking in quality renters at a good rate.
3 Interest rate uncertainty is adding to the noise
Interest rates rose unexpectedly at the start of 2026, but they are on hold at least for the month of June following the RBA’s latest announcement. Experts are currently predicting rates will hold steady for the near future, with possible drops in 2027 (although anything could happen as we have experienced in 2026).
However, no matter what the cash rate does, the underlying housing supply problem won’t resolve itself overnight. Rental income remains one of the more stable income streams available to property investors, especially for those who no longer need to use negative gearing (currently 50% of investors), and this has real value.
Helping property owners to see the full picture
The most effective thing property managers can do right now is communicate proactively and clearly. Owners who feel informed are far less likely to make reactive decisions they will later regret. If they do reach out, walk them through the rental vacancy data in their suburb, share what is happening with rents and talk to them about their long-term options. An accountant or broker may also be able to share relevant advice.
The media will continue to run with the headline version of the story. Your job is to give your clients a version relevant to their individual circumstances and help them develop their own strategy.
Continue to apply outstanding service with good value for money and provide a positive experience for renters as well as property owners and your rent roll will continue to thrive.
FAQ
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The sales and rental markets are separate. Vacancy rates remain near historic lows (around 1.5% in Melbourne), so tight supply keeps pushing rents up even as sale prices soften.
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Not in a rush. Anyone who bought before 2020 likely has strong equity and would still profit, since current "discounts" are measured against peak prices, not purchase price.
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Rates are on hold for now, with possible cuts in 2027. But rates aside, the supply shortage isn't going away soon making rental income a relatively stable bet for investors, especially the ~50% no longer relying on negative gearing.