According to the Money.com.au Mortgage Insights report, the Sunshine State has maintained its position as the second-largest investor market by share, recently overtaking Victoria.
Queensland now accounts for 24 per cent of all investor loans nationally, compared to Victoria’s 22 per cent, representing 47,015 and 43,568 investor loans respectively.
Money.com.au’s Mortgage Expert, Alex Dore, said this shift comes down to strong investor confidence in Queensland’s long-term property development and regional growth opportunities.
“We may be seeing the pendulum start to swing back from the West to the Eastern states,” Mr Dore said.
“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.”
Western Australia recorded a 23 per cent increase in investor loans, making it the second-fastest growing investor market despite losing its top position after three years of leading annual growth.
Victoria’s property market is showing signs of a significant shift, with investor loan growth surpassing owner-occupier growth for the first time since June 2023.
Investor loans rose by 12 per cent compared to 8 per cent for owner-occupiers in the year to March 2025.
“We’re seeing a renewed surge of confidence from property investors in the Victorian market,” Mr Dore said.
“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.”
New South Wales demonstrated one of the most balanced investor markets in the country.
The state recorded 19 per cent annual investor loan growth, matching the national average, with year-on-year growth in investor loans for new properties at 23 per cent and existing properties at 20 per cent, the narrowest gap of any state.
“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,” Mr Dore said.
South Australia is now leading the nation in loan growth for new owner-occupier properties with a 36 per cent annual increase, although starting from a lower base.
Of the 21,456 owner-occupier loans issued in South Australia over the past year, 1,362 were for new properties.
Tasmania saw both owner-occupier and investor lending rise by 8 per cent year-on-year, with loans for existing properties growing by 10 per cent annually.
However, owner-occupier loans for new properties dropped by 23 per cent, the largest decline of any state.
Queensland also recorded the biggest jump in construction loans for owner-occupiers, up 29 per cent year-on-year, well above the national average of 9 per cent.
This construction activity is generally viewed as a positive indicator for investors assessing growth potential.
