Queensland overtakes Victoria as second biggest property investment market

Queensland has emerged as Australia’s second-largest property investment market, overtaking Victoria with 23.4 per cent of investor loans, new data from Money.com.au has revealed.

The sunshine state recorded 4,593 investor loans in September, nearly 700 more than Victoria, representing a 19 per cent annual growth rate.

Money.com.au home loans expert Mansour Soltani said investors were shifting away from Victoria due to its tax regime.

“With the highest property tax rates in the country, investors are leaving Victoria in favour of states with lower taxes and lifestyle appeal, like Queensland,” he said.

Queensland’s dwelling prices showed strong growth in the March 2024 quarter, with unit prices rising 5.09 per cent to $578,000 and house prices up 2.07 per cent to $735,000, according to the Real Estate Institute of Queensland.

The Brisbane 2032 Olympic Games is expected to inject $8 billion into the Queensland economy, potentially boosting property values as seen in previous Olympic host cities.

Western Australia maintained the highest share of investor growth nationally with a 43 per cent annual increase in loan numbers, while NSW placed third with 20 per cent growth.

The Northern Territory recorded the highest percentage growth, with investor loans jumping 50 per cent to 99 loans in September.

Soltani predicted increased activity in eastern states in 2025 as interest rates decline.

“My prediction for 2025 is that as interest rates drop, buyer activity will ramp up again in the eastern seaboard states – NSW, Vic, and Qld. Meanwhile, Western Australia and South Australia, which are becoming saturated markets, may start to stabilise,” he said.