ISCOVER
Brokers need a deep understanding of the trends influencing investor behaviour, growth areas in property markets, and financial tools available to support investors.
As the 2025 spring selling season approaches, brokers are well positioned to capitalise on an anticipated seasonal uplift in property listings, buyer activity, and renewed market momentum.
The property market has cooled from the highs of 2024 but growth in the Australian economy is expected to return to trend over the next 18 months and housing remains a trusted investment for Australians.
Investor sentiment holds steady
NAB’s latest Quarterly Australian Residential Property Survey reveals buyer sentiment is now broadly positive across the country,. With interest rates lower and expected to fall further, confidence has also improved.
Most property professionals in Western Australia, Queensland and South Australia assess market conditions as rising, approaching their peak or at the peak of the market, while Victoria and New South Wales are at the start of recovery.
Buyer activity is also up. Australian Bureau of Statistics data shows investor lending totaled $32.4 billion in March 2025, only slightly below the peak levels seen in early 2022. PEXA data further indicates that investor lending is outpacing owner-occupier finance on an annual basis, underscoring sustained confidence in property as a long-term investment.
Market impacts on buyer behaviour
The first rate cut in February was a clear turning point for housing values, drawing investors seeking opportunities. An additional cut in May, and growing certainty of more cuts later in the year have fueled housing sentiment, helping to push values higher.
Recent volatility in equity markets is also influencing investor behaviour. With rising geopolitical tensions and tariff uncertainty leading more investors to seek stability in housing investments.
In this environment, investors seeking to enter the property market or expand their portfolios are looking for more than just finance. They’re turning to brokers for strategic insights, expert guidance on how to navigate complexity and advice on tailored loan structures.
Broker insight: Staying up to date with market trends and finance options will be key for brokers to understand when, why and how customers are using property as part of their broader investment strategy.
Home values grow across Australia
Housing has gained value across almost every region of Australia, with Darwin recording the highest quarterly growth, where dwelling values were up 4.9%.
Home values in regional Australia grew by 5.3% in the 12 months to April 2025, outpacing capital city growth of 2.6%. Regional areas in Queensland, South Australia, and Western Australia in particular are seeing increased interest. House prices in Townsville, for instance, have nearly doubled since 2019, making it one of Queensland’s standout areas for capital growth.
From here, forecasts predict growth will once again favour capital cities. NAB data reveals that Melbourne’s outer suburbs dominate the list of most in-demand metro areas across Australia in 2025. Truganina tops the list, with Roxburgh Park close behind. In Sydney, Yarramundi-Londonderry, Schofields, Wentworthville, and Prestons feature in the top 10, while Piara Waters–Forrestdale is Perth’s west coast entry. AS
Broker Insight: While growth in capital city markets is once again picking up, infrastructure growth and strong rental demand are still shaping new investor hotspots. Brokers can leverage NAB’s national network of BDMs to identify opportunities and stay informed on government incentives and local developments.
Capital growth a priority for investors
As highlighted in NAB’s 2024 Megatrends report, many Australian property investors are motivated by capital gains – not rental yield. This has fuelled the continued rise of rentvesting, where buyers invest in high-growth locations while renting in lifestyle-friendly areas.
With rising housing values, high-income earners in sectors like finance, law, and medicine are likely to continue embracing this strategy, supported by their strong borrowing capacity and income stability.
To support this cohort, NAB continues to develop market leading policies and service propositions that enable high income earners working in specific sectors to reduce upfront costs associated and make property investment more accessible, particularly for first-time investors.
Broker Insight: High-income professionals often have the means to invest, but may not know about some of NAB’s lending solutions relevant to their circumstances. These customers value strategic guidance and tailored advice, making this a key opportunity for brokers to build trust and deliver long-term value.
Investor motivations are not one-size-fits-all
Many investors focus on capital gains, but others may prioritise passive income, portfolio diversification, or tax efficiencies through strategies like negative gearing. Each strategy should be informed by the customer’s personal goals, life stage, investment time frame, as well as their available deposit.
Whether customers are seasoned investors or entering the market for the first time, brokers need to understand their customers’ motivations so they can offer tailored lending solutions and trusted guidance.
As the bank behind the broker, NAB can support you with the insights, tools and guidance needed to assist your customers on their property journey.
With spring selling season approaching, brokers should focus on the forces shaping investor behaviour, emerging high-growth areas, and the financial tools available to support customers through the process.
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