A sharp rise in investor borrowing and shifting state-level momentum signals renewed confidence in parts of the housing market, according to new data from Money.com.au.
Investor appetite for residential property has climbed to its highest level on record, with new figures showing lending activity now exceeding the previous peak seen during the pandemic-era property boom.
According to Money.com.au’s latest State-by-State Mortgage Insights Report, a total of 205,533 investor loans were issued nationally over the past 12 months.
That result surpasses the previous high of 203,515 loans recorded in the year to June 2022, pointing to a renewed willingness among investors to re-enter the market despite higher interest rates.
The report shows momentum is uneven across the country, with New South Wales and Victoria driving growth, while conditions have softened in parts of the western market.
New South Wales sets fresh records across all property types
New South Wales recorded its strongest year on record for investor lending, with 62,501 loans issued, representing annual growth of 10.5 per cent.
Lending for existing dwellings, construction and land purchases all reached new highs in the state, indicating demand is spread across multiple property types rather than concentrated in one segment.
Money.com.au Property Expert Debbie Hays said the pattern reflects a more measured approach from investors.
“Rather than chasing a single strategy, investors are diversifying across property types. That’s typically a sign of a mature market, where buyers are balancing yield, future growth and development potential.
“Some are prioritising immediate rental returns through existing stock, while others are positioning for future supply shortages by buying land to build on or hold.”
Victoria emerges as the fastest-growing investor market
Victoria was the fastest-growing major state for investor lending, with loan numbers rising 13 per cent year-on-year to 47,732 loans.
The state also recorded its largest quarter on record for investor loan volumes, signalling a clear shift in momentum after a prolonged period of subdued investor activity.
The data suggests investors are increasingly reassessing Victoria’s relative affordability and longer-term fundamentals compared with other east coast markets.
Queensland growth moderates despite strong owner occupier demand
Queensland continues to rank as one of the strongest owner occupier markets in the country, with lending up 4.6 per cent annually, well above the national average.
Investor lending, however, has slowed. While Queensland recorded its highest quarterly investor loan volume in four years, annual growth has eased significantly, dropping from 17 per cent to 7.9 per cent.
The report suggests the state may be transitioning from a rapid growth phase into a more balanced market, particularly as affordability pressures increase in some regions.
South Australia records strong demand for new housing
In South Australia, new housing continues to account for a higher-than-average share of owner occupier lending.
One in every 11 owner occupier loans issued in the state was for a new build, compared with a national average of one in 16, highlighting sustained demand for newly constructed homes.
Western Australia loses investor share to eastern states
Western Australia was the only state to record a decline in owner occupier lending over the past year, alongside stalled investor momentum.
The state’s share of national investor lending slipped from 12.8 per cent to 12.2 per cent, with much of that activity flowing east.
New South Wales increased its share by 0.4 percentage points, while Victoria gained 0.7 percentage points, reinforcing the growing pull of the eastern states for investor capital.
