Many Australians appear to think so, judging by the latest lending data from the Australian Bureau of Statistics [i].

There were 60,445 new investment loans approved in the December quarter 2025. This was a 5.5% increase (3,176 loans) from the previous quarter, and a 23.6% rise compared to the December quarter 2024.

The total value of new investment loans was $43.0 billion in the December quarter, up 7.9% ($3.2 billion) from the previous quarter. The average loan size rose by $31,008 over the quarter to $716,711.

There was growth in the number of investment loans in Victoria (+8.8 %), New South Wales (+4.1%), Queensland (+3.3%), Western Australia (+4.6%), Tasmania (+28.2%) and South Australia (+2.8%).

A number of factors appear to be encouraging investors back into the market, including tight rental supply, rising weekly rents across many cities and regions, strong population growth, and expectations that interest rates may already be nearing their peak. However, the latest military actions in the Middle East could still influence Australian monetary policy, particularly if oil supplies are disrupted, and higher petrol prices flow through to the bowsers.

Savvy investors are also keeping a close eye on potential tax changes. Canberra is currently reviewing Australia’s capital gains tax (CGT) discount – and possibly negative gearing - as part of a Senate Enquiry.

At present, taxpayers receive a 50% discount on capital gains for assets held longer than 12 months, a concession that is an important incentive for property investors.

Tax aside, property has long been seen as a solid investment. It is a physical asset, which is why it's called “real” estate. Shares, by contrast, exist mainly as digital records or on paper. Real estate is something you can see and touch. Even when buying an investment property off the plan, the land exists, and the building will soon follow. This physical presence gives many investors a sense of certainty that is harder to find in the equity or bond markets.

Property investment is also relatively easy to understand, as many investors are already homeowners – sometimes many times over. While it’s always wise to do some research before buying a property, the fundamentals are consistent across most markets. Concepts such as “location”, “supply and demand, “infrastructure”, and “population growth” remain key drivers of property values.

Historically, Australian residential property has delivered a strong long-term average annual growth of around 6-7%. While this is comparable with share market returns, property has traditionally been less volatile. Unlike companies listed on a share market, a quality, well-located property cannot go bankrupt or collapse due to poor management.

Demand for well-located housing is likely to remain strong as Australia’s population grows. Although property generally takes longer to buy and sell than shares, this slower turnover can also help reduce market volatility. This makes real estate an appealing long-term investment.

If you’re considering selling or buyer a residential investment property, contact your local Raine & Horne office today.

[i] https://www.abs.gov.au/media-centre/media-releases/first-home-buyer-loans-rise-68-cent