Brett Warren , National Director – Metropole Group
If you’re a property investor in Sydney, Melbourne or Brisbane, the latest lending data from the ABS should catch your attention.
Investment loan activity surged 13.6% in the September quarter, reaching 57,624 new approvals – the highest since early 2022. That’s not just a rebound; it’s a clear signal that investor confidence is back.
What’s driving the uptick? According to the ABS, falling borrowing costs and persistently low vacancy rates are creating ideal conditions for investors. The total value of new investment loans hit $39.8 billion, up 17.6% for the quarter, with the average loan size now sitting at $685,634.
Sydney led the charge with a 19% rise in investment loans, followed closely by Melbourne at 18.5% and Brisbane at 11.9%. These figures reflect what we’re seeing on the ground – investors are re-entering the market, targeting areas with strong rental demand and long-term growth potential.
For Sydney investors, the combination of easing rents and tight vacancy rates is creating opportunities in well-located, family-friendly suburbs. Melbourne’s balanced market and steady leasing activity make it attractive for those seeking value and stability. Brisbane continues to benefit from population growth and lifestyle appeal, especially in outer-ring suburbs with strong owner-occupier demand.
It’s also worth noting that investment loans now make up around 40% of all new dwelling loans. That’s a significant shift, and it suggests that investors are once again playing a central role in shaping market momentum.
These lending trends reinforce the importance of strategic property selection, understanding local market dynamics, and building a portfolio that’s resilient through cycles.
For savvy investors, the message is clear: momentum is building, and those who act with insight and discipline will be best positioned to capitalise on the next phase of growth.
