Investor activity surges across NSW as rental demand strengthens
Investor activity in New South Wales is rising again, with investors now accounting for 44% of home loans, up from 37% in late 2022, according to the PropTrack Westpac Investor Report 2026.
The shift reflects strong underlying rental conditions, with limited supply and rapid rent growth continuing to support investor demand. The report also shows high levels of profitability, with 90% of investor sales in Sydney and 97% in regional NSW recording gains in late 2025.
REA Group senior economist Angus Moore said investor activity is typically concentrated in more affordable markets, where price growth and yields are stronger. In Sydney, locations such as St Marys, Fairfield, Mount Druitt and Blacktown are seeing elevated investor enquiry, while suburbs including Austral, North Richmond and Tumbi Umbi have delivered strong property growth and yields.
Despite recent rate increases creating some headwinds, tight rental conditions continue to underpin investor participation, reinforcing demand across the Sydney property market and broader NSW regions.
About the author – Alex Veljancevski is a Sydney Mortgage Broker with Eventus Financial, which assists first home buyers, investors, upgraders and borrowers seeking to refinance to a better deal on their home loan.