Why property investors should feel confident in 2025

If you’re a property investor in Sydney, Melbourne or Brisbane, the latest PropTrack-Terri Scheer Investor Report 2025 offers plenty of reasons to feel optimistic.

Investor activity has increased over the past few years – reaching its highest share of new lending since 2017. This renewed momentum is being fuelled by falling interest rates and persistently tight rental market conditions.

With inflation now back within the RBA’s target band and another rate cut expected in the near term, the landscape is looking increasingly favourable for savvy investors.

Rental markets remain under pressure, with vacancy rates at historic lows and competition among tenants intensifying. Rents continue to rise, albeit more moderately than the peaks of 2022 and 2023, and gross rental yields are strengthening, according to the research.

For investors in Sydney and Melbourne’s inner-city precincts, this means strong tenant demand and solid returns. Meanwhile, growth corridors like Blacktown, St Mary’s, Ipswich and Kwinana are emerging as investor hotspots, thanks to affordability and new housing supply.

Brisbane, in particular, has been a standout. Since March 2020, property prices in Brisbane, Adelaide and Perth have soared by over 90%. This has translated into record profitability for investors – more than 90% of investment properties sold in the past year achieved a profit. Even in Melbourne, where growth has been more subdued, four out of five investor sales were still profitable.

The report also highlights a demographic shift: older Australians are increasingly dominating the investor landscape, with over-60s now making up 27% of property investors. While some may eventually divest as they retire, many are staying active longer, supported by extended working lives and strong market fundamentals.

We’re seeing these trends play out on the ground. Strategic investors are capitalising on capital growth and high-yield opportunities and building resilient portfolios in markets with strong fundamentals.

So, what does this mean for you? If you’ve been considering your next move, now is the time to act.

The PropTrack-Terri Scheer Investor Report 2025 confirms what we’ve long believed: Australia’s property markets – especially in Sydney, Melbourne and Brisbane – remain fertile ground for long-term growth and wealth creation.

Let’s make 2025 your most strategic year yet.