Investor activity has surged over the past 18 months, reaching its highest share of new lending since 2017, with about one in seven Australians now owning a rental property.
According to REA Group's PropTrack Terri Scheer Investor Report, new investor lending has risen steadily, fuelled by tight rental conditions and renewed confidence following the multiple RBA rate cuts.
Across the country, Queensland and South Australia recorded the highest increase in investor loans, up by 16 per cent from the 2024 to 2025 financial year.
Investor activity has also been strong in NSW, with investor loans up 12 per cent, while Western Australia saw a 10 per cent increase, and Victoria recorded a rise of 9 per cent over the same period. In contrast, Canberra was the only territory to record a decline of 15 per cent in investor loans.
REA Group senior economist, Angus Moore, said that the peak in investor loans showed a strong market performance.
“With markets expecting at least one further rate cut by the Reserve Bank and challenging rental market conditions persisting, strong investor activity is likely to continue over the rest of this year and next.” Moore said the peak in activity also resulted from rental conditions, as the report found that limited rental availability led to higher rents and increased competition, ultimately attracting investors.
Recent Cotality data showed that rental stock supply has remained below average, with about 25 per cent fewer listings on the market than the five-year average.
The decrease in listings, combined with a record-low vacancy rate of 1.47 per cent nationally, has resulted in a 4.3 per cent growth in rents over the year to September.“Rental market conditions remain very tight, and rents have grown rapidly in recent years. That’s likely encouraging investors to buy in,” Moore said.
Most people only realise the market has turned after it’s already too late to capitalise. Fact is, the smart money is already on the move.
But what about you? Are you clear on how to take advantage of these market conditions — or are you still waiting for ‘certainty'?
Don’t let uncertainty hold you back. We can help.
Call us at GoReal to find out how…
Barbara Hutson