Investors are keener to buy in 2025 than they have been since mid-2022, according to API Magazine’s latest Property Sentiment Report. It says 30% of respondents intend to buy in the next 12 months and the majority (65%) of those are investors.

The report says investors believe 2025 is a good year to build their portfolios, with many turning back to houses as their preferred asset. “While still some way short of the 45% recorded in Q2 2022, the proportion of buyers looking to purchase a house has risen steadily for six months to 39%,” the report says.

More than a third of respondents selected Queensland (34%) as their preferred state for investment in 2025. Surprisingly, 20% selected Victoria for investment despite new taxes and fees, which have been a deterrent to investors in the past 12 months.

Investors say they are happy if they can achieve a yield of between 4.6% and 5.5%, and the majority (79%) are not willing to lose a good tenant to pursue a higher return.