Property Ownership in Victoria 2026 and Beyond: Sell, Hold, Refinance or Reposition?
For many Victorian property owners, the greatest challenge today is no longer simply “what is my property worth today?”
The more important question has become:
“Is my property still working hard enough for me, especially in light of other asset classes?”
After decades where property ownership was often rewarded by simply holding through cycles, the environment has fundamentally changed. Higher holding costs, changing tenant expectations, increased land tax obligations of which will be ever increasing, interest rate pressures, regulatory changes, landlord incentives and shifting buyer behaviour have all created a new landscape, with property, in general, now not providing expectations for many property owners.
Whether you own a commercial investment, retail premises, industrial asset, development site, prestige residence, or a long-held family property – the decision-making process has become more complex. The decision process is not singular, it now includes a variety of outsourcing to accountants, planners and property advisors.
Many owners are now facing four strategic pathways:
1. Hold – but understand what you are really holding
The traditional view that “property always goes up” has always been the mentality over the last 30 year period. Simply, it now requires greater analysis.
Holding may absolutely remain the correct strategy – but only after considering:
- Is the asset generating an appropriate return?
- Are rents aligned with the current market rental levels?
- Is there unrealised development or repositioning potential, with reference to the “Highest and Best Use” and/or simply an uplift in rental level?
- Are future capital requirements increasing, has the owner allowed for Capex?
- Is the asset still attractive to the next generation of buyers?
- Is the property creating wealth or simply preserving it, or is it decreasing in value?
A quality asset with strong fundamentals remains desirable. However, passive ownership without review can result in missed opportunities and in this current stage of cycle can provide instances of a decrease in levels of value not usually seen.
2. Sell – recognising when capital can work harder elsewhere
Selling is often viewed emotionally, particularly when properties have been held for decades. i.e. generational holdings.
However, sophisticated owners increasingly ask:
“If I had the equivalent amount of cash today, would I buy this same property again?”. Unfortunately, the answer is not so simple… Probably not.
If the answer is no – it may be time to reassess.
Reasons owners consider selling include:
- Unlocking capital
- Estate planning
- Reducing debt exposure
- Changing family circumstances
- Removing management complexity
- Reallocating capital into better opportunities i.e. equities market, first mortgage, etc.
The best selling decisions are generally made strategically – not when circumstances force action without constant review, especially in the 2026 year and timing within the property cycle, with further obstacles evident in 2027 i.e. 1 July 2027 – new base year of Capital Gains Tax.
3. Refinance – preserving ownership while releasing opportunity
For many owners, the property itself may not be the problem – the initial capital structure may be.
Refinancing may provide the ability to:
- Restructure debt
- Fund investments
- Assist family succession planning
- Acquire additional assets
- Improve cash flow flexibility
However, lenders are now applying greater scrutiny to income, valuations and asset quality.
Understanding a property’s realistic market position before approaching financiers has never been more important. A property valuation is a MUST.
4. Reposition – the often overlooked strategy
Some of the greatest value creation occurs not through buying or selling – but by improving what you already own.
Repositioning may involve:
- Renegotiating leases
- Changing tenant mix
- Refurbishment
- Alternative uses
- Planning opportunities
- Subdivision strategies
- Improving presentation before a sale
A property valued purely “as it stands today” may not reflect what it may derive moving forward.
The Victorian Market: A New Era of Active Ownership
The coming years will likely reward informed, proactive owners, with the market having now turned to a considered “buyers market”.
The gap between average assets and exceptional assets is widening, with the latter definitely hard to find.
Buyers, tenants and financiers are all becoming more selective within all transactions, and the refinance market in the new financial year will see changes.
This does not mean property is less attractive – it means strategy matters more.
Successful owners will continually ask:
Should I own this asset?
Should I improve this asset?
Should I release capital?
Should I change direction, has this asset class reached a premium level, with very little upside?
Independent Advice Before the Decision is a must.
Major property decisions should not commence with a sales campaign.
They should commence with independent analysis prior to commencing anything.
Understanding:
- Current market value
- Buyer depth
- Rental position, is there an uplift or a decrease foreseeable short, medium or long term?
- Risks and opportunities
- Alternative strategies
Allows owners to make decisions based on actual evidence – not just assumption and opinion of value.
At First Valuation Group (FVG), our role is to assist property owners, private investors, families, professionals and businesses to understand their options – whether the ultimate decision is to sell, hold, refinance or reposition.
Because in today’s market, the most expensive decision may not be selling too early, or is it?
It may be holding too long with unrealised expectations only.
Mark Ruttner
First Valuation Group (FVG)
Independent Property Valuation | Advisory | Transactional Management
Helping property owners make informed decisions for over 30 years
To discuss any related property matter herein or other issues, please contact
Mark Ruttner, Managing Director
mr@fvg.com.au 0411 419 674
