The Australian investor market is experiencing significant growth, with investor loans increasing by 22 percent in 2024. This growth rate is more than three times faster than owner-occupier loans, according to new data from Money.com.au. Investor loans are currently the fastest-growing segment of the market, outpacing owner-occupier loans with their 22 percent growth. In 2024, a total of 515,116 new home loans were issued nationwide, representing an 11 percent increase from the previous year, totaling $331 billion in mortgages.
Comparatively, investor loans reached a total of 192,843 in 2024, which is 34,234 more loans than the previous year. The average annual loan size for investors was $648,570. Mansour Soltani, Money.com.au’s property expert, noted that investor loans have been growing three times faster than owner-occupied loans. He also predicts further growth in the investor market for 2025. Soltani attributes the increase in investor loans to the rise in house prices, which has provided existing homeowners with increased equity to invest in additional properties.
Soltani further explains that with record-low vacancy rates, high rental demand, and population growth, the investor market is expected to pull even further ahead in 2025. Queensland has emerged as Australia’s second-largest investor market, accounting for 23.8 percent of investor loans in 2024. This marks the first time that Queensland has surpassed Victoria in investor loans for any given year. In 2024, Queensland recorded 45,872 investor loans, which is 3,305 more loans than Victoria.
While Queensland excelled in the investor market, it also led the nation in owner-occupied loans, experiencing a 10 percent increase in 2024. Soltani attributes this to Victoria being one of the most accessible property markets, with relatively steady property prices compared to other states. He suggests that Victoria is currently one of the best-value markets in the country, providing homebuyers with more affordable prices and better locations than Queensland.
Among the major states, Western Australia saw the highest growth in investor loans at 35 percent in 2024, accounting for 13 percent of the total investor loans nationwide. Similarly, the Northern Territory experienced a 40 percent increase in investor loans, although it only accounted for 1 percent of the total investor loans across the country.
Following the Reserve Bank of Australia’s announcement of a 0.25-percentage-point cut, Soltani predicts that the property market will continue to pick up, making it “the year of first home buyers.” He expects further rate cuts in 2025, which will boost borrowing power. Additionally, government incentives are currently at an all-time high, and potential changes to serviceability rules around student loans could provide even more relief for first home buyers.
