{"id":188507,"date":"2025-04-28T16:30:17","date_gmt":"2025-04-28T06:30:17","guid":{"rendered":"https:\/\/propertyupdate.com.au\/?p=188507"},"modified":"2025-04-14T08:49:53","modified_gmt":"2025-04-13T22:49:53","slug":"australias-investor-market-is-heating-up-but-some-states-are-turning-up-the-heat-faster-than-others","status":"publish","type":"post","link":"https:\/\/propertyupdate.com.au\/australias-investor-market-is-heating-up-but-some-states-are-turning-up-the-heat-faster-than-others\/","title":{"rendered":"Australia\u2019s Investor Market Is Heating Up \u2013 But Some States Are Turning Up the Heat Faster Than Others"},"content":{"rendered":"

If you\u2019ve been following the property markets closely, you\u2019ll know investor activity has increased.<\/p>\n

But the latest figures from Money.com.au<\/a>\u2019s Mortgage Insights<\/em> report confirm just how widespread, and strategic this resurgence is.<\/p>\n

We\u2019re not just seeing more investor loans; we\u2019re seeing investors target very specific markets, asset types, and growth corridors.<\/p>\n

And as always, the smart money follows fundamentals, not fear.<\/p>\n

The big picture: investors are back in force<\/span><\/h2>\n

Over the past year, investor loans jumped 22% nationally, with 192,843 new loans issued.<\/p>\n

That\u2019s more than triple the growth rate of owner-occupier loans, which edged up by just 6%.<\/p>\n

\"Annual<\/p>\n

According to the report, projections suggest we could see over 234,000 investor loans issued in 2025.<\/p>\n

That\u2019s a massive number and it tells us that, despite higher interest rates, tighter serviceability, and economic noise, investors are confident.<\/p>\n

Why?<\/p>\n

Because they\u2019re looking through the short-term noise to the long-term opportunity.<\/p>\n

This is textbook countercyclical investing.<\/p>\n

NSW: Record investor activity, and a shift toward new builds<\/span><\/h2>\n

Data from the report show that New South Wales is leading the charge, recording the highest share of investor loans in the country\u201441.7% of all new loans in the state last year.<\/p>\n

That\u2019s up from just under 30% at the end of 2020.<\/p>\n

Interestingly, the sharpest growth has come from investor loans for newly built properties, which soared 34% year-on-year.<\/p>\n

\"Annual<\/p>\n

These also had the highest average loan size in the state\u2014$872,306 compared to $827,099 for established homes\u2014reflecting rising build costs, but also investor appetite.<\/p>\n

According to Money.com.au\u2019s Property Expert Mansour Soltani, NSW investors are increasingly drawn to new estates in regional corridors\u2014areas offering better bang for the buck.<\/p>\n

He said:<\/p>\n

\n

\u201cWe\u2019re seeing more housing density in regional areas outside Sydney, where new estates are offering strong opportunities for investors who want to avoid overcapitalising.<\/p>\n

At the same time, a significant number of first-home buyers are also opting for these developments as part of their rentvesting strategy.\u201d<\/p>\n<\/blockquote>\n

This aligns with what we're seeing on the ground: demand for quality new housing in regional growth nodes is rising\u2014both from investors and rentvestors chasing affordability and future capital growth.<\/p>\n

Victoria: Playing catch-up, but tax policies are biting<\/span><\/h2>\n

For the first time in two years, investor loan growth in Victoria has caught up with owner-occupier lending, with both rising 10% year-on-year.<\/p>\n

\"Annual<\/p>\n

But that headline hides a more nuanced picture.<\/p>\n

Yes, construction loans are up 22% and lending for existing dwellings increased 9%.<\/p>\n

But loans for new housing among investors dropped by 20%.<\/p>\n

That\u2019s a clear response to Victoria\u2019s harsh tax environment.<\/p>\n

As Mansour Soltani bluntly puts it:<\/p>\n

\n

\u201cVictoria is the most heavily taxed state in the country when it comes to property.<\/p>\n

It has the highest stamp duty of all states, and land taxes on investment properties and second homes are among the most expensive.\u201d<\/p>\n<\/blockquote>\n

These high upfront and holding costs are pushing many investors away to lower-cost states like Queensland and Western Australia.<\/p>\n

Despite its population growth and economic weight, Victoria risks losing investor capital if the policy doesn\u2019t shift.<\/p>\n

Queensland: From lifestyle hub to investor favourite<\/span><\/h2>\n

Queensland continues to rise as a powerhouse for investors.\r\n\r\n\r\n

<\/div><\/p>\n

According to the report, it recorded 26% growth in investor loans last year\u2014totalling nearly 46,000\u2014and now sits just behind NSW in overall investor volume.<\/p>\n

Investor loans now make up 40% of all new loans in the Sunshine State, nearly double<\/strong> what they were four years ago.<\/p>\n

Growth is broad-based:<\/p>\n