New investor loans are continuing to increase as buyers make a return to the market.

The number of new loans going to investors has risen solidly, with ABS figures showing a 13.2% increase between the December 2023 and December 2024 quarter. But analysis shows that despite the increase in investors, more than half are selling off too quickly.

The research by the Australian Housing and Urban Research Institute (AHURI) and Curtin University shows more than 20% of investors sell within a year and more than half only keep the property for two years.

Only a third of landlords hold their investment properties for more than 20 years. Lead author Dr Ranjodh Singh says investors who hold for longer are more likely to build wealth.

The research shows that nationally, 55% of all rental investments are held for two years, 28% for two to six years, and 17% for more than six years.