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According to data from buyersagent.com.au, investor lending in Western Australia has grown 315 per cent since 2020.
This far outpaces other parts of the country, which recorded investor lending growth of:
- Northern Territory (230 per cent)
- Queensland (124 per cent)
- South Australia (85 per cent)
- NSW (46 per cent)
- ACT (37 per cent)
- Victoria (22 per cent)
- Tasmania (down 8 per cent)
Shaun McGowan, CEO of buyersagent.com.au, said the immense performance of Western Australia can be attributed to a “perfect storm of strong rental yields, low vacancy rates, and relatively affordable property prices compared to other states”.
“Perth’s house and unit prices have grown steadily but remain well below those in Sydney and Brisbane, making Western Australia one of the last true ‘value’ markets for investors. We’re seeing the return of Eastern state investors, who are diversifying into Western Australia as affordability constraints limit their options at home,” he said.
“Many investors also see Perth as a lower-risk, high-reward opportunity, especially with population growth and infrastructure investment driving long-term capital gains.”
The research revealed that vacancy rates across the state have sat around 1–3 per cent in the last couple of years.
McGowan has seen an increasing number of brokers and financial advisers steering clients towards investing in Western Australian property.
Despite this, the ship may have sailed, as what was once an “untapped” part of the country has been bled by massive activity.
“Back in June 2020, investor loans made up just 17 per cent of all loans in Western Australia, well below the national average of 27 per cent at the time. Western Australia was largely untapped by investors. Fast forward to 2025, and investors now account for 38 per cent of all loans in Western Australia, exactly in line with the current national average,” McGowan said.
“While other states like NSW (42 per cent), Queensland, and South Australia (both 40 per cent) still sit slightly higher, the gap between Western Australia and the rest of the country has effectively closed. This suggests Western Australia’s investor growth is likely to stabilise and track more closely with national trends moving forward.”
Nationally, investor loans increased by 69 per cent since 2020, an increase of over 80,000 loans.
In contrast to this, first home buyer loans grew by just 7 per cent over the same period and overall owner-occupier loans grew by 6 per cent.
McGowan said investors are outpacing owner-occupiers due to the stronger financial positions many were in post-pandemic.
“After housing prices surged in 2020 and 2021, many investors found themselves flush with equity, and have used it to expand their portfolios, often as part of a negative gearing strategy,” he explained.
“In contrast, rising interest rates and living costs have hit owner-occupiers harder, especially first-home buyers. Many are struggling with borrowing capacity or delaying their purchase altogether, while investors with existing assets and serviceability are stepping in to fill the gap.”
[Related: Melbourne emerges as Australia’s most affordable capital for investors]
