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Australia’s housing market has seen significant growth in 2024, with a total of 515,116 new home loans issued – an 11 per cent increase from 2023, amounting to $331 billion in mortgages according to the latest Mortgage Insights from Money.com.au.
The December 2024 quarter alone saw overall loan numbers (including both owner-occupier and investor loans) rise 3.3 per cent quarter on quarter and 7.1 per cent year on year.
The investor market, in particular, continues to show remarkable growth, with investor loans increasing by 22 per cent annually, compared to just 6 per cent for owner-occupier loans. This marks a significant shift, with investment property purchases growing more than three times faster than those made by home buyers.
Despite the latest Lending Indicators data released by the Australian Bureau of Statistics (ABS) showing the first decline in the number of new investment loans approved fell by 4.5 per cent during the December quarter, the value of new investment loans during the 2024 calendar year still reached $125 billion, 29.8 per cent higher than in 2023.
Money.com.au’s property expert Mansour Soltani attributed this surge in investor activity to rising house prices, which have increased equity for existing home owners looking to invest in additional properties.
“With vacancy rates across capital cities at record lows, rental demand showing no signs of easing and population growth, we’re likely to see the investor market pull even further ahead in 2025 as market conditions shift in a downwards rate cycle,” he said.
Qld solidifies its position as Australia’s second-largest investor market
Queensland has solidified its place as the second-largest investor market in Australia, accounting for 23.8 per cent of investor loans in 2024, 1.7 per cent more than Victoria. This marks the first time Queensland has outpaced Victoria in investor loans on record. Over the year, Queensland recorded 45,872 investor loans, compared to 42,567 in Victoria.
Meanwhile, the Northern Territory recorded the largest increase in investor loans, rising 40 per cent year on year, although it still accounted for only 1 per cent of total investor loans. Among the major states, Western Australia saw the highest growth with a 35 per cent increase, making up 13 per cent of all investor loans.
Nationally, investor loans remain the fastest-growing segment of the market, increasing by 22 per cent annually. In 2024, investor loan numbers reached 192,843, 34,234 more loans than the previous year. The average annual loan size for investors now stands at $648,570.
This coincides with research released by Aussie Home Loans which found a stark decrease in investor interest for NSW properties, falling to 59 per cent of total settlements in 2024 from 82 per cent in 2020.
The research found that New South Wales investors are increasingly turning to Queensland, up to 14.07 per cent in 2024 from 5.31 per cent in 2020.
[RELATED: NSW investors increasingly turning to Queensland and Victoria]
