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Growth beyond borders: The fierce 3-way fight investors can’t ignore
A new 2026 Property Investor Sentiment Survey by Momentum Wealth has found that interstate investment has become the new norm, with landlords crossing state borders more than ever.
Momentum Wealth managing director Damian Collins said that while 2025 had been strong for investors, 2026 will see rising values squeeze affordability, with more turning to interstate markets to diversify their portfolios and tap into better opportunities.
“At the same time, many home owners and investors are sitting on significant equity, which can be leveraged with professional advice to build further wealth.”
“With interest rates shifting into a tightening phase, investors are being encouraged to review borrowing structures, refinancing options, and broader strategies to stay ahead.”
Compiled from more than 670 investors, of which 57 per cent own investment property and 32 per cent own only their home, while the rest were renters or rentvestors.
The survey found interstate investing has reached a new peak, with 73 per cent of respondents open to buying outside their home state, up from 67.1 per cent in 2025, which Collins said highlighted a growing shift towards diversification.
Across the country, Brisbane, Perth, and Melbourne have emerged as the top three best property investment cities, ranking closely at 23 per cent, 22 per cent, and 21 per cent, respectively.
According to the data, Brisbane attracted investors across all age groups, driven by strong capital growth, population gains, interstate migration, and a 17.3 per cent annual rise in median dwelling prices ahead of the 2032 Olympics.
On the other side of the country, Perth has been strongly favoured by over-55s, with 50 per cent naming it the top investment city, driven by strong capital growth of 22 per cent and total returns of 27.1 per cent.
Similarly, Melbourne sentiment has more than doubled to 21 per cent in 2026 compared to 10.3 per cent in 2024, driven by improved affordability and a median home value of $826,132, with the city particularly favoured by 36–45s.
According to Collins, by buying interstate, investors have been diversifying their portfolios and avoiding concentration of risk.
“Property markets around Australia don’t all move in sync. Returns are shaped by a range of factors, many of which can be locally driven, such as population growth or issues such as land rezoning,” he said.
“So, along with diversification, investing interstate offers opportunities to tap into market conditions that may be unique to a particular state or city.”
“By holding assets across different states, investors can capture growth as it emerges in each market, while reducing exposure to downturns in any single location.”
In addition, Collins said buying interstates can help investors access affordability gaps, stronger growth, varied rental demand, and potentially lower state-based taxes such as stamp duty and land tax.
Preferred asset and commercial appeal
While the appeal of commercial real estate has been growing, the survey found that established houses remained investors’ favourite asset class at 62 per cent.
Collins said investor preference for established houses has been driven by land appreciating while buildings depreciate, and by their location in tightly held suburbs where scarce vacant land supports long-term value growth.
This year, data also showed that interest in house-and-land projects has surged to 42 per cent, likely due to stronger depreciation benefits from new builds and the added land component not typically found in townhouses or apartments.
For other property types, the survey found that investors preferred townhouses and villas at 38 per cent, followed by apartments and units at 20 per cent.
Collins said the outlook for townhouses and villas was less clear-cut, as they were often found on infill sites in established suburbs where high land values make it viable to build multiple, low-maintenance dwellings.
While residential property was the clear favourite among investors, 30 per cent of respondents held commercial property, and only just over 10 per cent owned more than one commercial asset.
Despite lower current commercial ownership, 65 per cent of investors said they were open to commercial property, with aspiring investors (70 per cent) more likely to consider it than current investors (60 per cent).
According to Collins, a lack of knowledge has been the main barrier to investing in commercial property, with almost half of those who aren’t considering it saying they didn’t know enough about the market to invest.
He added that interest also declined with age, with half of investors aged 56 and over open to commercial property compared to 65 per cent across all age groups.
“It is worth noting, though, that commercial property can be very appealing to older investors seeking a reliable income stream. This reflects the tendency of commercial property to deliver higher yields than residential property,” he said.
Collins said that, as a way to access commercial property, investors have shown interest in syndicated investments, with 71 per cent of respondents willing to consider options for traditionally more expensive asset classes.
He said that through syndicates, investors can access opportunities to generate strong returns on commercial or residential development projects without tying up substantial personal capital.
“For investors with limited capital, or who do not wish to take on personal debt, a managed property fund offers an easy entry point to capitalise on a commercial property market that is benefiting from return to work trends and a rise in household spending.”
“Part of the beauty of property is that there are multiple pathways to having an ownership stake,” Collins concluded.
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