Western Australia is experiencing one of the nation’s most dramatic rises in property investment lending, with new data revealing a more than 408% surge over the past five years. According to the Sydney Morning Herald, recent ABS figures show that WA recorded the second-strongest growth in the total value of non-refinancing dwelling loans nationwide, behind only the Northern Territory.
A Five-Year Climb to Record Lending Levels
In the September quarter of 2020, property investment lending in WA sat at $773.6 million. Fast forward to the September quarter of 2025, and that figure has soared to nearly $3.94 billion. The market’s lowest point came during the June 2020 quarter, when lending dropped to $482.5 million as the global pandemic disrupted economies worldwide.
While most states hit their lending peaks in late 2025, some markets peaked earlier. Tasmania reached its investment high in March 2022, while the ACT followed in June of the same year, suggesting different recovery and growth cycles across the country.
Nationally, the investment lending landscape has strengthened as well. The September 2025 quarter saw 57,624 new investment loans, up 13.6% from the previous quarter. The total value of these loans climbed to $39.8 billion, with the average loan size increasing to $685,634.
ABS head of finance statistics Dr. Mish Tan attributes this acceleration to falling borrowing costs and tight rental markets, both of which have boosted investor confidence. “The number of investment loans in the September quarter has increased to its highest level since March Quarter 2022,” she said.
Why WA Is Outperforming the East Coast
Industry experts suggest the state’s surge is not a sudden spike but the result of long-term structural and economic shifts.
Nu Wealth managing director Daniel McQuillan said investor momentum began building in late 2020, when national buyers started recognising that Perth property was significantly undervalued compared to eastern states.
Between 2015 and 2020, WA’s economy underwent a downturn that triggered a major price correction across the housing market. The result? Highly affordable dwellings paired with superior rental yields, making Perth one of the most compelling investment markets in the country.
As WA’s economy began to rebound and population growth accelerated, especially after borders reopened, demand for housing tightened sharply. “Property investor lending started to accelerate further when the state economy started to improve and the demand for housing surged especially after the pandemic,” McQuillan said.
Rental Growth, Job Creation, and Confidence Boosts
The state’s strong fundamentals continue to propel investment activity. In recent years, property prices and rents have both surged, delivering attractive returns and reinforcing the perception that WA remains a high-growth market.
Investor confidence has also been bolstered by structural economic developments. The AUKUS submarine agreement, for example, is projected to generate more than 10,000 jobs in Perth, placing further upward pressure on housing demand and rents.
“With housing still in short supply and the state economy performing strongly, investor activity should continue to remain buoyant,” McQuillan noted.
Could Growth Begin to Moderate?
While WA remains one of Australia’s standout investment markets, analysts say the future could bring a more balanced landscape. As housing prices and yields in other capitals begin to recalibrate, investors may once again shift their attention eastward.
For now, however, the combination of affordable entry prices, tight rental conditions, and a robust economic pipeline continues to position Western Australia as a national frontrunner in property investment.
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