iscover
iscover 
Recent research from Aussie Home Loans revealed the sharp decrease in NSW investment. In 2020, 82 per cent of investment properties owned by NSW-based buyers were located within NSW. However, as of 2024, this dropped to 59 per cent of total settlements.
Queensland has seen a large increase in NSW-based investors, climbing from 5.31 per cent in 2020 to 14.07 per cent in 2024. Meanwhile, Victoria saw figures from 8.39 per cent in 2020 to 14.28 per cent in 2024.
What’s driving this increased interest in neighbouring states? According to Jackie Laverty, franchise principal at Aussie Home Loans Beenleigh and Ormeau, there are a variety of factors at play.
“We are seeing increased investment spending in our area, driven by continuing significant population growth, strong rental yield and continuing infrastructure. The area is also well placed with easy access to both Brisbane and the Gold Coast, and this is further being enhanced with the start of a second highway,” she said.
“Victoria’s stable rental market, job opportunities and ongoing development projects have also played a role in drawing in more NSW-based investors.”
In NSW, affordability was a major concern and is forcing many to look elsewhere for opportunities.
“Increasing property prices and affordability challenges in NSW may be pushing investors to consider more cost-effective options elsewhere. Rising interest rates and shifts in housing demand post-pandemic have likely contributed to the trend as well,” Laverty said.
Areas like Queensland, according to Aussie Home Loans, have comparatively lower entry costs, strong rental yields and population growth driven by interstate migration.
“This data underscores a clear shift in how NSW-based investors are approaching the property market. While Sydney and NSW remain strong investment locations, more buyers are looking interstate for better affordability, growth potential and diversification,” said Brad Cramb, chief distribution officer at Lendi Group.
“We’re seeing a trend where investors are actively seeking higher returns and more sustainable long-term growth. It’s no longer just about owning property in your backyard – savvy investors are taking a national approach, which positions a national broker network like ours well for continued growth,” he added.
Other areas in Australia seeing increased attention from NSW investors were South Australia, with investment growing from 0.71 per cent in 2020 to 3.90 per cent in 2024. Further, Western Australia grew from 0.72 per cent to 4.42 per cent.
