Investor activity in the Australian property market has climbed sharply since 2023, driven by tight rental conditions and strong rent price growth.
The PropTrack Westpac Investor Report, released today, found new investor loans have increased 64 per cent since their early 2023 low point.
Investors now make up close to their highest share of housing lending since 2017.
South Australia and Northern Territory saw investor loan shares hit record highs during 2025. New South Wales, Western Australia and Queensland are at their highest levels since 2017, 2008 and 2007, respectively.
The tight market is translating directly to profits. In the final months of 2025, 93 per cent of investor sales recorded a gain – the highest level in at least a decade.
In Brisbane, Adelaide and Perth, almost every investor sale exceeded the original purchase price.
“Investors have been very active in recent years,” REA Group Senior Economist Angus Moore said.
“Home prices have continued to rise, meaning that the share of investor sales recording a profit has been the highest in at least a decade.”
Mr Moore said higher interest rates may slow activity in 2026, but underlying conditions remain supportive.
“Rental market conditions remain tight, vacancy rates are low, and rent prices will continue to grow, which will continue to support strong investor activity this year.”
The report also revealed investor preferences and behaviours.
Nearly half of investor enquiries on realestate.com.au were for properties under $700,000, reflecting a focus on more affordable stock.
Melbourne emerged as a hotspot for investor interest. Regions within the city dominated the top 20 capital city areas with the biggest increase in investor enquiries across 2025.
Nationally, rental properties are being leased within 20 days of listing on average.
However, gross rental yields declined over the past year as rent price growth slowed while home prices continued to rise.
Interstate investment is common among smaller markets. Westpac data showed 20 per cent of investors buy property in a different state, with this rising to 40 per cent in the ACT, 42 per cent in Tasmania, and 60 per cent in the Northern Territory.