Property investment soars as investor loans outpace owner-occupier growth

Investor housing loans in Australia grew more than three times faster than owner-occupier loans, rising 19 per cent annually amid a continuing investor boom.

Owner-occupier loans increased by just 5 per cent annually, according to Money.com.au’s latest Mortgage Insights report.

Western Australia emerged as the nation’s leading state for loan growth, recording a 43 per cent increase in investor loans and a 9 per cent rise in owner-occupier loans during the September quarter.

Victoria claimed the largest share of owner-occupier loans at 28 per cent, while also achieving the second-highest annual growth in owner-occupier loan numbers at 7 per cent.

Queensland recorded the largest annual increase in average loan size, climbing 11 per cent from $478,518 to $531,257 across all owner-occupier loan types.

Money.com.au’s Property Expert, Mansour Soltani, said investor activity in New South Wales reflected broader market trends.

“Investor activity is being driven by strong rental demand and rising yields, fuelled by overseas migration, as well as strong property price growth in Sydney and regional or coastal areas like Wollongong, which are drawing investors and cashed-up retirees into the market,” he said.

New South Wales maintained its position as the largest market for property investors, holding 30 per cent of investor loans nationally, despite ranking third in new investor loan growth behind Western Australia and Queensland.

Victoria experienced a 20 per cent annual drop in new property loans for investors, while owner-occupier loans for existing properties grew by 15 per cent.

“House prices in Victoria haven’t increased as much as in states like NSW and WA, making it an attractive market for both first-home buyers and those looking to buy homes at prices that are not inflated by interstate migration and the promise of a shiny new lifestyle,” Soltani said.

Queensland emerged as the second-largest market for property investors, holding 23.4 per cent of investor loans nationally and recording 24 per cent annual growth.

South Australia showed strong growth in land loans for homebuyers at 17 per cent, while Western Australia led almost all investor loan categories with 43 per cent annual growth.

Tasmania recorded negative annual growth of 1 per cent in the owner-occupier segment, despite showing strong growth in construction loans for investors at 68 per cent annually.

*This post was originally published on https://propertybuzz.com.au/2025/01/06/property-investment-soars-as-investor-loans-outpace-owner-occupier-growth/?utm_source=mailpoet&utm_medium=email&utm_source_platform=mailpoet&utm_campaign=daily-buzz-datedtext-datedordinal-datemtext-4