Money’s Mortgage Insights State-by-State: VIC’s Investor Market Rebound & QLD Overtakes WA as Top Investor Market

Money.com.au has released the latest edition of its Mortgage Insights state-by-state report, highlighting key trends in the housing loan market for owner occupiers (homebuyers) and investors across Australia. Note: Annual figures are for the year to March 2025.

See the full report on LinkedIn.

New South Wales

Annual investor loan growth in New South Wales is on par with the national average, both sitting at 19% for the year to March 2025. Notably, NSW shows one of the most balanced investor markets, with year-on-year growth in investor loans for new properties at 23% and existing properties at 20% — the narrowest gap of any state. Other states typically show a stronger skew toward either new builds or established homes.

Money.com.au’s Mortgage Expert, Alex Dore, says New South Wales remains the largest investor market by share.

“We’re seeing consistent demand across all property types in NSW — something that’s rare in other states. Investors know that buying in NSW is a long game; the entry costs are higher, but so is the potential for long-term payoff in terms of capital growth and rental yields,” he says.

The owner occupier loan market in NSW is showing signs of recovery. Annual growth improved from a 26% decline in the year to March 2023 to an increase of 5% in the year to March 2025. However, it still has one of the lowest growth rates among the three Eastern states and sits just below the national average of 6%.

Victoria

For the first time since June 2023, annual investor loan growth in Victoria has surpassed owner occupier growth — rising 12% and 8% respectively. Victoria has traditionally been an owner occupier–dominant state, but growth in this segment is slowing. It held steady at 10% annual growth in the year to December 2024, before easing to 8% in the year to March 2025.

Alex says there’s a renewed surge of confidence from property investors in the Victorian market. This is driven by expectations of capital growth as house prices in Victoria have not fluctuated like other capital markets and a strategic return to inner-city and high-growth suburbs.

Investor loan growth in Victoria is largely driven by a 17% increase in construction loans and a 13% rise in loans for existing properties, even as other investment segments declined.

Additionally, Victoria still recorded the strongest growth in owner occupier loans among all states, as well as the highest growth in loans for established homes — up 11% year-on-year, nearly double the national average of 6%.

Queensland

Queensland recorded the highest annual growth in investor loans of all states, rising 24% in the year to March 2025.

The Sunshine State has also maintained its position as the second-largest investor market by share, after recently overtaking Victoria. Queensland now accounts for 24% of all investor loans nationally, compared to 22% for Victoria. In terms of loan numbers, that’s 47,015 investor loans issued in Queensland and 43,568 in Victoria.

Alex says there’s strong investor confidence in long-term property development and regional growth opportunities across Queensland.

This is further supported by the Sunshine State recording the biggest jump in construction loans for owner occupiers — up 29% year-on-year, well above the national average of 9%. Alex says this is generally seen as a positive sign for investors, who often look at construction activity when assessing growth potential in a state.

South Australia

South Australia recorded the slowest growth in owner occupier loans overall, up just 2% year-on-year, but an improvement on the flat growth recorded in the year prior.

Interestingly, SA is now leading the nation in loan growth for new owner occupier properties, with a 36% annual increase in loan numbers, although starting from a much lower base.

Of the 21,456 owner occupier loans issued in South Australia over the past year, 1,362 were for new properties.

Investor lending is driving the market in SA, with a 22% annual increase — the third-highest among the major states. All investor segments recorded double-digit growth, signalling broad-based confidence in the SA market.

Western Australia

Western Australia has been dethroned by Queensland as the top state for investor loans, after three years of leading annual growth. WA recorded a 23% increase in the year to March 2025 — just behind Queensland’s 24% — but still holds its place as the second-fastest growing investor market in the country.

“We may be seeing the pendulum start to swing back from the West to the Eastern states. After a strong run in WA, investor momentum is now picking up in markets like Queensland — particularly as we edge closer to the Brisbane Olympics,” says Alex.

But investor lending in WA remains steady, with continued demand across key segments. Lending for new investor properties recorded the strongest growth at 34%, alongside the strongest growth in construction loans (32%) and land loans (40%). This reflects the broader uplift in home building across the state — particularly in apartments and units.

Tasmania

Both owner occupier and investor lending rose 8% year-on-year in Tasmania, with the state recording one of the largest increases in owner occupier loans — on par with Victoria.

Across both segments, loans for existing properties grew by 10% annually, while all other loan types saw only modest growth or even declines.

Notably, owner occupier loans for new properties dropped by 23% — the largest decline of any state. This likely reflects that existing housing stock is more available in Tasmania, while new home construction remains low. Confidence in building has also taken a hit due to labour shortages, delays, and planning red tape.