Why Now Might Not Be the Time to Sell Your Investment Property

In today’s market, we’re seeing a trend that doesn’t quite add up: investors selling assets that are poised to increase in value. Right now, we’re at the bottom of a rising market and the data suggests it may be worth holding on.

According to Judo Bank’s recent State Economic Report, Melbourne house prices increased 4.9 per cent over the six months to June, with commentators noting that prices are rebounding. Some are predicting rises of up to 20 per cent. While we definitely saw justified sales of investments last year when people were under great financial pressure, we’re now seeing homes and apartments being sold just as they’re about to make a strong comeback.

Why this matters:

• First home buyers are returning following recent interest rate cuts, increasing demand in the market.
• Migration and population growth in cities like Melbourne are putting pressure on rents and driving competition for housing.
• Opportunities for investors: Those who hold onto their assets for a little longer are likely to benefit from rising prices and rental yields.

It’s important to note that holding periods don’t need to be decades long. The property cycle has shifted — what used to take 7–10 years now happens in 3–5 years. Peaks and troughs come faster, meaning even a short-term hold can be profitable.

The takeaway? Selling too early can mean missing out on significant gains. Patience in a rising market, coupled with an understanding of today’s faster cycles, may be the smarter move for investors looking to maximise returns.