Money.com.au’s latest Mortgage Insights report revealed how investor and owner-occupier lending trends are shifting across Australia’s housing markets, with Queensland overtaking WA and Victoria’s investor market rebounding.
According to Money.com.au’s analysis of ABS Lending Indicators data to March, investor lending in New South Wales rose 19% in the year to March 2025, in line with the national average.
The state also showed one of the most balanced investor markets, with investor loans for new builds up 23% and existing properties up 20% – the narrowest gap of any state.
“We’re seeing consistent demand across all property types in NSW – something that’s rare in other states,” said Alex Dore (pictured), Money.com.au mortgage expert. “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.”
Owner-occupier lending in NSW also showed signs of recovery, increasing 5% year-on-year, a sharp turnaround from the 26% decline to March 2023. However, it still lags behind other Eastern states and sits just below the national average of 6%.
Victoria recorded 12% growth in investor loans, overtaking owner occupier loan growth for the first time since June 2023. Owner occupier lending slowed from 10% to 8% year-on-year, signalling a gradual shift in market dynamics.
Dore said investor confidence is returning to the state, driven by consistent capital growth and strategic investment in high-growth suburbs.
“There’s a renewed surge of confidence from property investors in the Victorian market,” he said.
Victoria also led the nation in owner occupier loan growth for established homes, up 11% year-on-year, nearly double the national average. Investor activity was strongest in construction loans (+17%) and loans for existing properties (+13%), even as other investor segments eased.
Queensland, which recently opened consultation on a new statewide housing code, posted 24% annual growth in investor lending, the highest in the nation, edging out Western Australia for the first time in three years.
Queensland now holds 24% of the national investor loan share, ahead of Victoria’s 22%, with 47,015 investor loans issued in the state over 12 months.
Dore attributed this growth to strong sentiment around development and regional demand.
“There’s strong investor confidence in long-term property development and regional growth opportunities across Queensland,” he said.
Queensland also recorded the largest jump in owner occupier construction loans, up 29% year-on-year, compared to the 9% national average – a leading indicator often tracked by investors.
South Australia recorded the slowest owner occupier loan growth at just 2%, but saw an impressive 36% jump in new property loans – the highest in the country, albeit from a small base.
Of the 21,456 owner-occupier loans, 1,362 were for new properties.
Investor lending rose 22%, the third-highest nationally. All investor segments in SA recorded double-digit growth, suggesting broad-based market confidence.
Western Australia recorded 23% growth in investor loans, just behind Queensland, ending its run as the top-performing state. Still, WA remains a solid performer with strong activity in new housing.
“We may be seeing the pendulum start to swing back from the West to the Eastern states. 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,” Dore said.
WA’s strongest growth was in new investor properties (+34%), construction loans (+32%), and land loans (+40%), reflecting ongoing strength in home building and multi-unit development.
Tasmania recorded 8% growth in both owner occupier and investor loans – one of the strongest owner occupier results after Victoria.
However, owner-occupier loans for new properties fell 23%, the largest drop of any state.
Confidence in new construction remains weak amid labour shortages and planning delays.
Loans for existing homes in both segments grew 10%, indicating most activity is focused on established stock.
