Queensland set to become second-largest investor market.

The property investment landscape in Australia is experiencing a significant shift, as Queensland approaches Victoria's position as the second-largest investor market in the country.

New data from Money.com.au reveals Queensland has captured 23 per cent of all investor loans in the past year – nearly matching Victoria's 23.3 per cent share – and showing remarkable growth from its previous position.

Queensland's investment appeal is evidenced by a 14 per cent year-on-year increase in average investor loans. This figure now sits at $560,104, significantly outpacing Victoria's modest 5.3 per cent growth to $563,632.

Money.com.au's Research & Data Expert, Peter Drennan, said the shift is inevitable. "There were 48,531 investor loans issued in Queensland, just shy of the 48,812 loans issued in Victoria, and the odds are that these numbers will flip next month and put the Sunshine State ahead," Mr Drennan said.

The state's strong performance is particularly notable in its 36 per cent year-on-year growth in total investor loans, which is almost double the national average of 21 per cent.

Home Loans Expert, Mansour Soltani, attributes this growth to multiple factors. "Queensland has everything property investors look for including a strong local economy, population growth, expanding regional markets and ongoing infrastructure projects," Mr Soltani said.

Regional areas are proving particularly attractive, with markets such as Townsville, Bundaberg and Gladstone offering affordable entry points around $500,000 and potential rental yields of 5-10 per cent.

The state's growth extends beyond just investor activity, with owner-occupied loans growing by 12 per cent year-on-year, while other markets struggled to achieve similar results.