Property investors are firmly back in the market, creating fresh opportunities and competition for mortgage brokers working with both first-home buyers and property investors.
The latest PropTrack Westpac Investor Report shows new investor loans have climbed sharply from early 2023 lows as tight rental conditions and strong rent price growth draw investors back in.
“Investors have been very active in recent years, with the ABS showing the number of new investor loans grew 64% since its 2023 low point,” REA Group senior economist Angus Moore (pictured) said.
Investors are now close to their highest share of housing lending since 2017, lifting demand for credit advice and putting more pressure on borrowing capacity for owner-occupiers in investor-heavy markets.
REA Group’s latest Rental Affordability Report shows rental conditions are the toughest since at least 2008, with a median‑income household able to afford just 37% of advertised rentals in late 2025.
Investor profitability is a key driver of the renewed momentum. According to the report, in the final months of 2025 almost all investor resales were in the black, with 93% making a profit.
“On top of that, home prices have continued to rise, meaning that share of investor sales recording a profit has been the highest in at least a decade,” Moore said.
Brisbane, Adelaide, and Perth stand out, with almost every investor sale above its original purchase price.
The report highlights that investors are not confined to their home state, with Westpac loan data showing that one in five investors buy interstate. More affordable stock remains a priority, with nearly half of investor enquiries on realestate.com.au targeting properties under $700,000, and Melbourne suburbs dominating recent enquiry growth.
Looking ahead, Moore cautioned that “While higher interest rates may slow investor activity down in 2026, 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.”
A separate Money.com.au report also tips investor loans to grow faster than owner‑occupier lending nationally in 2026, and its latest state‑by‑state analysis shows NSW and Victoria pulling ahead on investor lending, with Queensland and WA moderating.
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