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Australian property investors are flocking to other states for better opportunities, with Perth continuing to rank as a top investment city, according to new survey results.
A new report has shown that over 60 per cent of Australian investors have been crossing state borders to find the best opportunities.
Based on 500 Australian investors, the Momentum Wealth’s Property Sentiment Report 2025 showed that 67.1 per cent of respondents would look beyond their state for their next property purchase.
Momentum Wealth founder and managing director, Damian Collins, said geographic diversification came with many benefits, including the ability for investors to protect themselves against market volatility.
“Geographic diversification unlocks access to more affordable markets, different growth cycles, and varying state-based tax structures,” Collins said.
“Essentially, you’re giving yourself more ways to win rather than putting all your eggs in one basket.”
Perth continued to be a favourite among interstate investors, with 48.7 per cent of respondents naming the City of Light as the “best place to buy an investment property”, up 6.5 per cent from 2024.
The report said investors were eyeing the city due to its relative affordability, strong rental yields, and sustained buyer demand.
According to REA, the median Perth house price in May 2025 was $1,142,500 – up 16.7 per cent from $1,035,000 in June 2024.
Melbourne followed behind Perth as the second-best capital city for investment in 2025, despite last year’s land tax changes.
Out of those surveyed, 19.5 per cent of investors said they would choose to purchase a property in the city.
Despite investors fleeing the city in droves due to Victoria’s land tax-free threshold, the report noted the city is still viewed as having growth potential.
Meanwhile, Brisbane came in as the third most appealing capital city for property investment in 2025 at 17.1 per cent, while only 5.7 per cent of investors said they preferred Sydney.
Additionally, the data showed that buyers’ sentiment has seen a boost across a number of states.
Only 9.5 per cent of the surveyed investors reported feeling negative about the property market in their home states, a decrease of 2.4 per cent from 2024.
Investors in Queensland proved to be the happiest, as investor positivity nearly doubled from 41 per cent last year to 80 per cent this year.
Perth locals followed in second place, with positive sentiment jumping from 46 per cent to 66 per cent.
NSW’s positive sentiment also saw an improvement, leaping from 28 per cent to around 35 per cent.
The report also noted that confidence was on the rise, as 45 per cent of investors looked to increase the size of their portfolios.
Meanwhile, nearly one in three, 29.8 per cent of respondents said they plan to buy an investment property in the next 12 months, a 2.5 per cent increase from 2024.
An additional 15.3 per cent of investors said they were saving to acquire additional properties.
“Property investment has clearly become the priority over other asset classes,” Collins said.
“When you see it outpacing traditional financial goals like retirement planning, which came in at just over 23 per cent, or debt reduction at around 20 per cent, it shows where people believe the real opportunities lie right now,” he concluded.
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