This marks the first time the Sunshine State has held this position since the Australian Bureau of Statistics (ABS) began tracking loan numbers and values by state.
Investor loan numbers in Queensland have grown by 24% annually, nearly five times Victoria’s growth rate of 5%, according to Money.com.au.
If this trend continues, Queensland could see an additional 10,338 investor loans compared to Victoria by this time next year. The average investor loan in Queensland has also risen significantly, up 11% year-on-year to $536,638, while Victoria’s has grown by just 2.7% to $553,667.
Money.com.au’s property expert Mansour Soltani attributes Queensland’s rise to a combination of lifestyle appeal, affordability, and strong growth opportunities.
“With lower taxes, strong migration, affordable regional markets, lucrative rental opportunities, and a booming infrastructure pipeline, Queensland is cementing its position as a property investor’s dream,” he said.
Here are the six key reasons driving the shift:
- Lower Property Taxes
Queensland’s investor-friendly tax environment is a significant drawcard. General land tax on properties worth $800,000 is $2,500 per year in Queensland compared to $3,450 in Victoria. Additionally, Queensland’s tax-free land value threshold is $600,000 for individuals, far higher than Victoria’s $50,000. While Victoria has introduced temporary stamp duty concessions for off-the-plan strata properties, these are unlikely to outweigh Queensland’s long-term tax advantages. - Higher Interstate Migration Rates
Queensland has led the country in net interstate migration every quarter since 2017. In the year to March 2024, the state gained 30,930 residents from interstate, compared to Victoria’s net gain of just 537. This influx has driven infrastructure spending, increased rental yields, and reduced vacancy rates, making Queensland highly attractive to investors. - Affordable Regional Markets with High Yields
Queensland’s regional towns like Townsville, Cairns, Mackay, and Gladstone offer properties under $500,000 and strong rental yields, which have risen by 5–20% year-on-year due to tight housing supply and rising demand. Many investors are capitalising on these opportunities to generate immediate rental income. - Short-Term and Holiday Rentals
Queensland’s status as a top tourist destination boosts the appeal of short-term rental investments. South East Queensland accounts for two-thirds of the state’s short-term rental market, offering lucrative returns during peak tourist seasons. For example, a one-bedroom apartment in Noosa can generate $1,000 per night in peak season, covering costs for the year, according to Brisbane-based buyer’s agent Andrew Pizzino. - Infrastructure Boom
Queensland’s robust infrastructure pipeline is another key factor. The state is home to over 300 transport projects and numerous residential developments. Major public projects like Brisbane’s 2032 Olympics preparations, the Cross River Rail, and the Gold Coast Light Rail Extension are expected to drive property demand and price growth. - Lifestyle Appeal
Queensland’s warm climate, beaches, and natural attractions make it an ideal location for living, investing, and retiring. “The ‘Queensland effect’ is driving strong demand for both owner-occupied and investment properties, especially in regional areas and along the coastline where many Australians will retire,” Soltani added.
