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In the last 18 months, new investor loans have grown strongly, nearly reaching the decade-high points of early 2022, according to a recent PropTrack study.
What’s driving this trend is the tightening of rental markets. With availability low and rent prices climbing, many investors are seeing an opportunity to capitalise.
Further, the recent RBA rate cuts have ignited some optimism in the market.
Investor activity growth is exceeding that of owner-occupiers, with report author Angus Moore saying investors are “making up a very substantial share of new lending – close to as high as we’ve seen in a couple decades.”
This is true for just about all areas of the country apart from Victoria. Moore said the state was the “key exception” as investors exit the market.
The report revealed that investor selling activity is high, as they make up around three in every 10 listings.
The downside of this Victorian exodus is a falling number of rental properties, with data showing the number of available rentals has dropped in the past year.
The consequences of this are higher rents, said Moore. Despite this, Victoria remains one of the more affordable states for renters.
This could turn around as interest rates are cut, however. Moore said investors may place more attention on Victoria in future decisions.
Recent data supported the PropTrack data with a noticeable recovery in investor activity.
The March quarter of 2025 saw investors returning to the market in droves, with 19 per cent more activity from 1Q24, sitting just 3 per cent below record highs of June 2022.
Meanwhile, investor refinancing saw record highs in 1Q25, reaching a total of 173,948 loans refinanced in the past year.
“We’re just shy of the investor loan peak set in 2022, but this time, the uptick in activity is happening in a very different rate environment. With rates falling from a much higher base and more cuts likely, many cashed-up investors see this as their window to strike before competition returns from owner occupiers and first home buyers,” said Money.com.au’s general manager of lending, Jacob Overs.
“Stamp duty concessions for off-the-plan properties have provided a lifeline for some investors buying new units and townhouses. At the same time, others are offloading their rental properties due to higher taxes in the state. But many of those homes are being picked up by first-home buyers as investment properties, thanks to their relative affordability.”
[Related: Loan activity recovering, investor refinancing reaches record high]
