Investor activity across Australia is showing a clear shift, with capital rotating rather than retreating, according to new data covering the two months to 14 February 2026 compared with the same period last year.
FOUNDIT tracked properties sold in the previous 12 months that re-entered the market as rentals, providing a practical view of where fresh investor funds are flowing.
Greater Melbourne recorded 1,711 new investor-linked rentals, up 10.7 per cent on the same period last year. After lagging Brisbane and Perth in the previous growth cycle, Melbourne is attracting renewed investor attention.
“Activity isn’t just in fringe estates. Established suburb areas with strong transport links and lifestyle appeal are recording meaningful entry,” says Kent Lardner, head of research at FOUNDIT.
“For agents and property managers, this suggests renewed rental stock entering core metropolitan corridors.”
Sydney remains the country’s dominant market, though activity has eased slightly. Greater Sydney saw a 4.6 per cent decline, with 1,630 new investor-linked rentals recorded.
“This appears less like withdrawal and more like consolidation. Investors remain active, but less aggressively than a year ago,” he said.
Queensland, which led the previous cycle, is cooling more noticeably. Greater Brisbane fell 29.6 per cent, while regional Queensland dropped 24.6 per cent.
“These were the standout markets of the previous cycle. The cooling suggests that affordability pressures and normalising rental growth are moderating fresh investor purchases,” Mr Lardner explains.
He adds that for property managers, “the rapid inflow of new managements seen last year is clearly slowing.”
Perth recorded the sharpest pullback nationally, with Greater Perth down 38.7 per cent and regional Western Australia falling 26.7 per cent.
“This does not imply weak tenant demand. Rather, it reflects fewer new investor purchases entering the rental pool compared with last year’s surge conditions,” he says.
Meanwhile, smaller markets are seeing growth. Greater Hobart rose 55.7 per cent, the ACT lifted 23 per cent, and regional Victoria and New South Wales posted moderate gains.
“These are smaller markets by volume, but the directional shift is clear: investors are selectively reallocating capital rather than exiting nationally.”
Between 15 December and 14 February in both years, the overall trend is evident: investor activity is moving away from the previously strongest-performing markets of Perth and Queensland toward Melbourne and select smaller capitals.
“For sales agents, this affects where listing pipelines may strengthen. For property managers, it signals which rent rolls are likely to expand in 2026, and where growth may flatten compared to last year,” Mr Lardner says.
“Investor capital has not disappeared. It has moved.”
