Australia is within the midst of one of many strongest waves of investor exercise seen in years, and one kind of house is firmly of their crosshairs.
Demand from buyers accelerated up to now 12 months, regardless of lease development slowing and rental yields declining, a brand new report has revealed.
Beforehand-unloved property markets at the moment are experiencing new waves of investor exercise as consumers search for high-yielding property and place themselves for the following leg of development.
Traders now account for an more and more giant share of recent lending, significantly in NSW, Queensland and Western Australia.
The expansion in investor lending up to now 12 months outpaced the uplift in borrowing by owner-occupiers, in line with the PropTrack-Westpac Investor Report 2026.
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The share of investor lending in Queensland is at its highest degree since 2004. Image: Getty
Report creator and PropTrack govt supervisor of economics Angus Moore stated investor participation lifted sharply up to now 12 months.
“Traders have been extremely lively in 2025,” Mr Moore stated. “Way more buyers are shopping for at this time than a number of years in the past.”
Regardless that the tempo of rental worth development has slowed for the reason that fast rises recorded in 2022 and 2023, the excessive demand and low availability of leases has contributed to extra investor exercise.
Supply: PropTrack Westpac Investor Report 2026
Houses are leasing rapidly throughout most cities, emptiness charges stay low, and rents are nonetheless rising sooner than inflation in lots of elements of the nation, the report discovered – situations anticipated to stay in place within the close to future.
“Low rental emptiness charges, tight rental market situations and strong development in rents are prone to proceed, which can help sturdy investor exercise in 2026,” Mr Moore stated.
The place buyers are most lively
In Queensland, the investor share of recent lending has climbed to its highest degree since 2004, whereas Western Australia is near its highest degree since 2010, the report discovered.
New South Wales has additionally seen investor participation carry to ranges not seen since 2017, whereas South Australia and the Northern Territory are sitting simply shy of all‑time data.
Victoria stays the outlier, with investor exercise choosing up within the second half of 2025 however nonetheless under the state’s lengthy‑run common.
Nonetheless, Melbourne areas made up the vast majority of the highest 20 elements of the capitals with the largest improve within the share of investor enquiries on realestate.com.au, though this was partly as a result of the town was much less widespread with buyers in 2024.
Supply: PropTrack Westpac Investor Report 2026
Darwin additionally recorded a notable improve in investor curiosity, the report discovered.
Inside the capitals, buyers have gravitated in the direction of outer areas on the extra reasonably priced finish of the market.
“Traders are prone to search for extra reasonably priced properties,” Mr Moore stated. “Almost half of enquiries on realestate.com.au from buyers are for properties beneath $700,000.”
Supply: PropTrack Westpac Investor Report 2026
In Sydney, the preferred areas with buyers embrace St Marys, Fairfield, Mount Druitt and Blacktown.
Traders trying in Melbourne gravitated in the direction of the northern and western suburbs, whereas elements of Perth’s south have been in buyers’ sights, together with the Kwinana, Rockingham and Mandurah areas.
Nonetheless, internal metropolis areas have been nonetheless widespread with buyers, significantly in Brisbane, Melbourne and Adelaide.
Investor demand in Melbourne has rebounded, significantly within the outer north and west, and the internal metropolis. Image: Getty
Westpac knowledge reveals one in 5 buyers purchase an funding property outdoors their residence state – a pattern most prevalent within the smaller states.
Nonetheless, buyers dwelling in Queensland, South Australia and Western Australia have been much less possible to purchase interstate – a results of sturdy demand and tight rental market situations in these states.
In the meantime, Victoria and Queensland had the best share of enquiries from interstate, realestate.com.au knowledge reveals.
Investing stays extraordinarily worthwhile
The report discovered that the overwhelming majority of buyers who offered a property in 2025 made a revenue.
Funding properties offered in Brisbane and Adelaide have been most worthwhile, with 99% of resales returning a revenue following fast worth rises in these cities.
Brisbane funding properties offered up to now 12 months generated a median revenue of $445,000, whereas Adelaide investments returned $395,000.
Supply: PropTrack Westpac Investor Report 2026. *Amongst gross sales that have been worthwhile
Melbourne had the bottom share of worthwhile gross sales at 84% – a results of the town’s slower worth development up to now few years in comparison with the opposite capitals.
Rising costs and slowing lease development have put strain on gross rental yields, which have declined up to now 12 months, the report discovered, significantly in cities the place worth development has been strongest.
“Whereas yields in Sydney and Melbourne have been comparatively steady up to now couple of years, Perth, Adelaide and Brisbane have seen yields decline,” Mr Moore stated.
Supply: PropTrack Westpac Investor Report 2026
Rental yields have been highest within the smaller capitals, with Darwin topping the record for each models and homes. Yields for homes have been excessive in Hobart, whereas models had excessive yields in Canberra.
Westpac Group chief economist Luci Ellis stated tight rental markets and a scarcity of provide would nonetheless current alternatives for potential buyers.
“Securing tenants and attaining an inexpensive rental yield within the 4 to 5 per cent vary will likely be greater than possible in that context,” she stated.
High investor hotspots
The report additionally revealed the top-ranked suburbs for buyers, based mostly on a mixture of things together with residence worth development, rental profitability and demand.
In NSW, Tumbi Umbi on the Central Coast got here in first place for homes with 21.5% annual worth development and three.8% rental yield. Moorebank was the highest decide for models, with the median worth rising by 29.4% in a 12 months, and properties returning a rental yield of 5.2%
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Reasonably priced outer suburbs have been high picks in Melbourne, together with Coolaroo the place the median home worth rose 14.2% to $650,000.
Biggera Waters was the highest-ranked suburb in southeast Queensland, with costs having grown 34.7% up to now 12 months. Ipwich suburbs together with North Booval, Lowood and Laidley have been additionally ranked extremely.
Suburbs of Adelaide’s north together with Elizabeth Park topped the record in South Australia, whereas Cannington got here out on high in Perth, with 22.% annual home worth development, and a 4.5% rental yield.
