New report reveals why investors are flooding the Australian property market

1 week ago 12
Tim McIntyre

Tim McIntyre

Updated 27 Mar 2026, 9:53am

First published 27 Mar 2026, 5:00am

Real Estate

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Investors have rushed into the property market over the past year, with an exclusive new report revealing they accounted for up to 44 per cent of total loans in some areas.

Melbourne had 12 of the nation’s most sought after suburbs for investors.


The PropTrack Westpac Investor Report 2026 found investor activity has increased across the board in major Australian capitals, with the bulk of their inquiries putting them in brackets where they are competing head to head with first home buyers.

New South Wales had 44 per cent of loans going to investors, up from 37 per cent in late 2022.

Investors in Queensland and South Australia made up 41 per cent of loans, and Victoria rose to 36 per cent of loans, also a significant rise from previous years.

REA Group senior economist Angus Moore said investors had been active right across Australia in recent years, with the Australian Bureau of Statistics showing the number of new investor loans grew 64 per cent since its 2023 low point.

Tumbi Umbi was top of the pops in NSW.


“On top of that, home prices have continued to rise, meaning that share of investor sales recording a profit has been the highest in at least a decade,” he said.

MORE:The full list of Qld hotspots

“While higher interest rates may slow investor activity down in 2026, rental market conditions remain tight, vacancy rates are low and rent prices will continue to grow, which will continue to support strong investor activity this year.”

The most popular markets for investors in NSW were Tumbi Umbi, North Richmond and Austral for houses, while units were targeted in Moorebank, Chipping Norton and Kingsgrove.

Investor activity across Queensland is at its highest since 2007, with investor loans more than doubling in the past five years.

MORE:The full list of SA hotspots

The Gold Coast and Ipswich received major interest from investors, with Biggera Waters, North Booval and Lowood making up the top three suburbs for houses. Brisbane had more interest for units, specifically Spring Hill, Brisbane City and Thorneside.

Tight rental market conditions and rapid rent rises were the key drivers of the increasing investor activity in South Australia.

Brisbane City aerial view at sunrise

Brisbane City rated strongly for units.


Elizabeth Park, Eyre and Elizabeth East topped the investor picks for houses, while Salisbury, Plympton and Henley Beach topped the unit list.

MORE:The full list of Vic hotspots

Investors are making a comeback in Melbourne, with 12 of the most 20 targeted areas for investors nationwide.

Top suburbs listed for investors included Coolaroo, Carrum and Meadow Heights for houses, as well as Notting Hill, Burwood East and Cremorne for units and apartments.

They were named based on their blend of above average price growth, rental returns and short timelines needed to lock in a tenant.

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