Queensland is poised to overtake Victoria as Australia’s second-biggest property investor market, according to new data
Money.com.au found that the Sunshine State now accounts for 23 per cent of all investor loans over the past year, just behind Victoria at 23.3 per cent.
This marks a significant shift from a year ago when Victoria held 26.2 per cent of all investor loans, while Queensland had 22.4 per cent.
Queensland’s average investor loan has grown by 14 per cent year-on-year, from $490,875 to $560,104. In contrast, Victoria’s average investor loan has increased by only 5.3 per cent, from $535,432 to $563,632.
Money.com.au’s Research & Data Expert, Peter Drennan said investors are flocking to Queensland.
“Queensland is on the verge of dethroning Victoria as the nation’s second biggest investor market,” Mr Drennan said.
“There were 48,531 investor loans issued in Queensland, just shy of the 48,812 loans issued in Victoria, and the odds are that these numbers will flip next month and put the Sunshine State ahead.”
He said there are several factors behind the shift, including Victoria’s flat-rate levy for property investors and additional taxes on landholdings, which have made the state less appealing to investors.
Money.com.au’s Home Loans Expert, Mansour Soltani, said many property investors are leaving Victoria in favour of states with lower taxes.
“Queensland is emerging as the new promised land,” Mr Soltani said.
“It has everything property investors look for including a strong local economy, population growth, expanding regional markets and ongoing infrastructure projects.”
Queensland is leading the nation with a 36 per cent year-on-year growth in investor loans, nearly double the national average of 21 per cent.
The state is also experiencing strong growth in first home buyer investor loans, which increased by 23 per cent year-on-year.
Key factors driving Queensland’s investor boom include rising rental yields in regional areas, major infrastructure developments, interstate migration and the state’s lifestyle appeal.
Regional markets such as Townsville, Bundaberg, and Gladstone are offering low entry costs for investors, with homes available for around $500,000 and potential rental yields of 5-10 per cent or more.
However, Mr Soltani cautioned investors to conduct thorough due diligence.
“Cheap doesn’t always mean good, but it can be a solid entry point into property investing,” he said.
“Queensland is not only leading investor activity — owner-occupied loans in the state grew by 12 per cent year-on-year, while no other market grew by more than 6 per cent, and New South Wales saw no growth.”
