While first home buyer activity is strengthening, investors remain the second largest buyer group in Victoria’s residential market, accounting for 34% of all loans in 2025. That’s 12,380 loan commitments; the strongest result since Q2 2022.

Affordability and interest rate cuts supporting investors

Victoria’s comparative affordability (particularly when measured against Sydney and Brisbane) is proving more attractive than the hurdles of higher state taxes and levies. Investors are seizing the opportunity of a quieter market, backed by the positive impact of multiple cash rate cuts.

Strong population growth reinforces market demand 

The state’s robust population growth continues to underpin housing demand. For investors, this growth provides further confidence in both long term rental demand and capital growth prospects, reinforcing Victoria’s appeal as a leading investment destination.

This article references findings from our August 2025 Melbourne Metro Apartments & Townhomes Market Report. Read the full report here.