New analysis of ABS lending data reveals Victoria has emerged as Australia's leader in investor loan growth, with annual growth surging from 9% to 13% in the September 2025 quarter, while the national average declined from 12.3% to 9%.
The shift is remarkable for a state traditionally oriented toward owner-occupiers. Victoria accounts for 29% of all national owner-occupier loans but only 23% of investor loans, yet it's now outpacing all major states in investor activity.
Growth Amid Falling Prices Creates Opportunity
Victoria's investor surge comes as average investor loan sizes fell during the quarter, from $604,926 to $601,301, contrasting sharply with other states where average investor loans increased 6.5%. NSW leads at $845,482, with the national average at $676,797.
Investor loans for existing dwellings in Victoria surged 19%, from 30,673 to 36,363 loans year-on-year. However, the preference is strongly towards existing dwellings; demand for construction loans for investment fell 2%, and new building loans dropped 3%.
Room for Further Growth
Despite the surge, Victoria's investor loan market remains 10% below its June 2022 peak of 53,254 loans, representing 5,522 fewer loans. Nationally, investor loans have reached record highs, with NSW and SA both already past their previous peaks, while QLD sits 2% below and WA 3% below their respective peaks.
Victoria's owner-occupier growth has slowed to 3.2%, falling behind SA (4.6%) and WA (3.5%), further highlighting the state's shift toward investor-driven activity.
