Investor activity rises on improved conditions

Property investors – also known as mortgaged multiple property owners (MPOs) – have been making a steady comeback to the housing market, according to Cotality’s latest data, while first home buyers remain active and relocating owner-occupiers are still somewhat cautious.

Investor confidence has been boosted by several regulatory changes, Cotality said. These include a shorter Brightline Test, reduced deposit and loan-to-value ratio requirements introduced in mid-2024 and the full reinstatement of mortgage interest deductibility from 1 April 2025.

Lower mortgage rates have added support by reducing the top-ups investors often need from other income to cover property costs 

“So far in 2025, mortgaged MPOs nationally have paid a median of $759,000, slightly down from $770,000 in 2024,” Cotality said. “That’s higher than the $700,000 median first home buyers have paid (up from $695,000 last year). Movers have paid $880,000 this year compared to $870,000 in 2024.”

Cotality noted that investors had not shifted to cheaper properties. “Their share of standalone house purchases has edged up from 66% last year to 67% in 2025, still below first home buyers and movers, where standalone dwellings account for 75% of activity each for the same period.”

Smaller investors driving activity

Cotality said the recent rise in MPO activity had come “entirely from smaller players” – either new investors who owned two properties (e.g. their home and one investment) or those with a portfolio of up to three investment properties.

“There’s no set definition of a mum-and-dad investor, but the data suggests that the smaller buyers are driving wider activity,” Cotality said.

“With potential top-up costs falling, many appear to be using equity in their own home or across their existing portfolio of rental dwellings to step into the market.”

Contact me if you’d like to discuss how current lending conditions and new tax settings could affect your investment plans. I can help you explore finance options and structure your next purchase with confidence.