Property Investors Are Back, But Not Where You’d Expect

Australia’s investor market is making a comeback  and in typical fashion, it’s not happening where the headlines are the loudest.

The latest Mortgage Insights report from Money.com.au reveals a sharp uptick in investor lending across most states.

But what’s really interesting is how investor activity is shifting state-by-state  and what this tells us about future opportunity.

If you know where to look, the data provides clear signposts.

And as always, those who act early will be best positioned.

Victoria

For the first time since mid-2023, investor loan growth in Victoria has overtaken owner-occupier lending, rising by 12% over the year to March 2025 compared to just 8% growth for owner-occupiers.

That’s a reversal worth noting -  Victoria has traditionally been dominated by owner-occupiers, but that’s starting to change.

And according to Alex Dore, Mortgage Expert at Money.com.au, the shift isn’t just statistical, it’s strategic:

“There’s a renewed surge of confidence from property investors in the Victorian market.

This is driven by expectations of capital growth as house prices in Victoria have not fluctuated like other capital markets, and a strategic return to inner-city and high-growth suburbs.”

Interestingly, the investor resurgence is being led by construction loans (up 17%) and lending for existing homes (up 13%),  a sign that investors are targeting a mix of new development opportunities and quality established stock in desirable locations.

At the same time, Victoria still recorded the highest growth in owner-occupier loans for established homes (up 11%) , nearly double the national average.

That tells us both ends of the market are active, which tends to reinforce underlying demand and price stability.

Queensland

Queensland is leading the nation when it comes to investor enthusiasm.

Investor loans grew 24% over the year to March 2025, the strongest of any state, overtaking Western Australia as the country’s number one investor market by share.

It’s not just a headline, it’s a major shift in market dominance.

Dore said:

“There’s strong investor confidence in long-term property development and regional growth opportunities across Queensland.”

And the numbers back that up.

Queensland now accounts for 24% of all investor loans nationally, compared to 22% for Victoria.

To put that in perspective, that’s 47,015 investor loans in QLD, a massive volume.

Also worth watching is construction activity.

Queensland saw the biggest jump in construction loans for owner occupiers , up a staggering 29% year-on-year, well ahead of the national average of 9%.

That’s a classic forward indicator of growth, as investors often track building trends to forecast future supply-and-demand shifts.

Western Australia

After three years of leading investor loan growth, WA has finally been dethroned by Queensland.

Investor lending still rose by a healthy 23%, but the momentum is clearly shifting east.

Dore explains:

“We may be seeing the pendulum start to swing back from the West to the Eastern states

After a strong run in WA, investor momentum is now picking up in markets like Queensland particularly as we edge closer to the Brisbane Olympics.”

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That said, WA isn’t going quiet.

Lending for new investor properties rose 34%, with strong gains in construction loans (32%) and land loans (40%) , a clear sign that appetite for development remains robust.

Apartment and unit projects in Perth continue to drive demand, particularly with affordability pressures pushing more buyers into medium-density housing.

New South Wales

NSW is rarely the loudest market, but it continues to be the largest investor market by share, with investor loans up 19%, in line with the national average.

What makes NSW stand out is its balance: loans for new builds grew 23%, while loans for existing properties rose 20%.

No other state has such a narrow gap, which Dore says is rare.

He further said:

“We’re seeing consistent demand across all property types in NSW, something that’s rare in other states.

Investors know that buying in NSW is a long game; the entry costs are higher, but so is the potential for long-term payoff in terms of capital growth and rental yields.”

In other words, it’s business as usual in NSW, which, for experienced investors, is often the safest bet of all.

South Australia

SA may not always grab headlines, but it delivered one of the strongest performances for investor lending, up 22% over the year.

What’s interesting is that all investor segments saw double-digit growth, reflecting broad-based confidence.

Even the owner-occupier market showed life, with a 36% jump in loans for new homes, albeit off a small base.

Tasmania

In Tasmania, both investor and owner-occupier lending rose 8% year-on-year, solid, but unspectacular.

The big red flag?

Loans for new owner-occupier homes dropped 23%, the sharpest fall of any state.

This likely reflects challenges in the building industry: labour shortages, long delays, and red tape are pushing buyers towards existing housing stock.

Still, loans for existing homes in both investor and owner-occupier segments rose 10%, suggesting demand remains steady where the risk is lower.

Final thoughts

This rebound in investor activity isn’t random.

It’s driven by shifting expectations, supply constraints, construction trends, and economic signals like infrastructure investment.

For strategic investors, the message is clear:

• Victoria is regaining investor confidence, particularly in inner-urban and high-growth corridors.

• Queensland is emerging as the new national hotspot and may be just getting started.

• WA still offers strong growth, especially for those in tune with local markets.

• NSW remains a reliable cornerstone of any national portfolio.

• SA and Tasmania are quietly gaining momentum.

More than ever, success will come to those who read between the lines and move ahead of the herd.