Investors Back In Force

Investors are once again a major driver of the housing cycle, with loan data showing their share of new lending grew roughly three times faster than owner-occupier lending.

Victoria has emerged as the standout comeback story, with investor loans up strongly over the year and the state close to regaining second place for investor market share behind New South Wales.

Better yields, strong population growth and a cheaper Melbourne entry price relative to Sydney are all helping to rebuild confidence.

Overlaying this is the expanding Home Guarantee Scheme, which is allowing more first home buyers to enter the market with deposits as low as 5%.

Combined, these forces are creating a level of demand shock that some analysts say is equivalent to several rate cuts.

Forecasts now point to new price records in every capital city by the end of 2026, with Sydney and Melbourne both tipped for mid-single-digit annual growth.

For investors, the signal is clear: competition is intensifying, and portfolio decisions need to account for both investor and first home buyer demand converging on the same segments.