Brett Warren , National Director – Metropole Group
Whether you’re a seasoned property investor or someone looking to start your property investment journey, the latest official stats highlight the growing confidence of investors around the nation.
Let’s start with the headlines: the Australian Bureau of Statistics (ABS) reported that the number of new investment loans saw a 13% rise in the December 2024 quarter compared to the same period in 2023.
That’s no small feat, considering fluctuating market conditions and the high interest rates environment. If we look back further, the growth compared to the December quarter of 2022 showed a 23% increase.
According to the ABS, while the overall number of new investment loans saw a modest dip of 4.5% in the December quarter compared to the previous one, the average loan size jumped by over $25,000 to reach $674,316.
A key takeaway from 2024 was the role of different states in driving investor activity. Queensland, Western Australia, New South Wales, and South Australia stood out, showing impressive year-over-year increases in the value of new loans, according to the ABS.
Queensland led the charge with a 40.9% jump, showcasing the state’s growing appeal to property investors.
On the flip side, lending to owner occupiers also saw robust activity last year, according to the ABS.
The value of new home loans approved for dwellings reached $54.8 billion in the December quarter – a 4.2% rise compared to the previous quarter. This steady growth underlines the enduring demand for residential property, even with moderating house prices in the latter half of the year.
For property investors, 2024 demonstrated that opportunity is often intertwined with market challenges in some locations such as Melbourne and to a lesser extent Sydney.
Navigating these temporary blips requires staying informed, adapting to shifts in demand, and perhaps most importantly, maintaining a long-term perspective.
So, whether you’re eyeing Queensland’s booming property market or considering Sydney and Melbourne for your first, or next, investment location, the property market remains a space of immense potential for those willing to seize it.
So, what’s next on your investment horizon? The numbers tell a compelling story, but every investor knows that the real magic happens in the details.
