Business
REA : Investor activity picks up amid tight rental conditions and strong rent price growth
REA : Investor activity picks up amid tight rental conditions and strong rent price
About this update from Rea Group Ltd
Media release 26 March 2026 Investor activity picks up amid tight rental conditions and strong rent price growth REA Group, in partnership with Westpac, today released the PropTrack Westpac Investor Report, which analyses property market conditions for investors. Key metrics include new investor loans, investor sales, rental vacancy rates, rental yields, and median advertised rents. The report found that investors have been active, with the number of new investor loans increasing materially since 2023. The activity reflects tight rental market conditions and elevated rent price growth, pressures which are expected to remain a feature of the housing market through 2026. Key Findings: The number of new investor loans has increased 64% since its early 2023 low-point, and investors are making up close to their highest share of housing lending since 2017. In South Australia and Northern Territory, the share of loans to investors hit a record high during 2025. New South Wales, Western Australia and Queensland are around their highest levels since 2017, 2008 and 2007, respectively. Tight rental market conditions and elevated rent growth in recent years are continuing to influence investor decision-making. In the last few months of 2025, almost all investor sales (93%) made a profit - the highest level in at least a decade. In Brisbane, Adelaide and Perth, almost every sale by an investor sold for more than their purchase price. REA Group Senior Economist, Angus Moore, said: "Investors have been very active in recent years, with the ABS showing the number of new investor loans grew 64% since its 2023 low point. "On top of that, home prices have continued to rise, meaning that share of investor sales recording a profit has been the highest in at least a decade. "While higher interest rates may slow investor activity down in 2026, rental market conditions remain tight, vacancy rates are low, and rent prices will continue to grow, which will continue to support strong investor activity this year." Additional findings: Investors typically seek more affordable homes, with nearly half of enquiries on realestate.com.au from investors for properties under $700k. Across 2025, more investors were enquiring about homes in Melbourne, with regions in the city making up majority of the top 20 capital city areas with the biggest increase in investor enquiries on realestate.com.au. The typical time between a home being advertised for rent on realestate.com.au and being leased was 20 days nationally. Gross rental yields declined in the past year as rent price growth slowed but home prices have increased. Westpac loan data shows that 20% of investors buy an investment property interstate. This is most common in smaller states and territories, including ACT (40%), NT (60%) and Tasmania (42%). For more information and to view the full report please visit realestate.com.au/insights or click here. -Ends- For more information: Sophie Lever REA Group Media Relations Specialist M: +61 483 388 337 About REA Group Ltd ( www.rea-group.com ): REA Group Ltd ACN 068 349 066 (ASX:REA) ("REA Group") is a multinational digital advertising business specialising in property. REA Group operates Australia's leading residential and commercial property websites - realestate.com.au and realcommercial.com.au - as well as the leading website dedicated to share property, Flatmates.com.au and property research website, property.com.au. REA Group owns Mortgage Choice Pty Ltd , an Australian mortgage broking franchise group, PropTrack Pty Ltd , a leading provider of property data services, Campaign Agent Pty Ltd , Australia's leading provider in vendor paid advertising finance solutions for the Australian real estate market and Realtair Pty Limited , a digital platform providing end-to-end technology solutions for the real estate transaction process. In Australia, REA Group holds strategic investments in Simpology Pty Ltd, a leading provider of mortgage application and e-lodgement solutions for the broking and lending industries, Arealytics, a provider of commercial real estate information and technology in Australia and Athena Home Loans, a leading digital non-bank lender and one of Australia's fastest growing fintechs. Internationally, REA Group holds a controlling interest in REA India Pte. Ltd. operator of established brands Housing.com and PropTiger.com . REA Group also holds a 20% shareholding in Move, Inc., operator of realtor.com in the US and a minority investment in Easiloan, a technology platform for end-to-end digital processing of home loans in India.