Australia’s property market surged to new heights in the September quarter, with the value of new residential home loans reaching a record-breaking $191.1 billion, according to fresh analysis from Canstar using data from the Australian Prudential Regulation Authority (APRA). The figure represents an $8.3 billion increase on the previous quarter.
A major driver behind this growth was a strong rise in new investor loans, which climbed $7.7 billion to a historic high of $71.7 billion — up 24% on the same period last year.
While investor lending dominated the increase, owner-occupier loans also hit a record, rising modestly by $646 million to reach $119.6 billion for the quarter.
Data from the Australian Bureau of Statistics (ABS) suggests this growth isn’t simply a reflection of higher property prices. The number of new dwelling loan commitments also rose 6.4%, indicating that more Australians are actively entering the market.
Despite rising borrowing activity, households still appear financially resilient. Canstar.com.au data insights director Sally Tindall noted that offset account balances suggest many borrowers remain more cashed-up than ever before. She encouraged mortgage holders to make the most of this position by putting every spare dollar to work in their offset accounts.
Looking forward, Tindall expects conditions to stay competitive. Property prices are tipped to run hard again despite no further rate cuts, with 2026 shaping up as another year of upward momentum driven by cashed-up borrowers, hungry investors and limited supply, even if rates remain elevated.
Regulators are also preparing for a more active market. APRA’s upcoming debt-to-income lending limits, due to take effect in February, will restrict banks to approving no more than 20% of new mortgages to borrowers with a DTI ratio of six or more. The share of these higher-risk loans has already edged up to 6.1%, from 5.5% in the previous quarter.
Investors Positioning for Opportunity
At Positive Income Properties, we’re seeing investors respond to these trends by targeting high-yield, strategically located properties across Australia — balancing growth potential with long-term rental strength.
We offer a wide portfolio of investment opportunities to suit a range of budgets and preferred locations, supported by expert consultation to help clients build sustainable wealth through property.
