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'Mum and dad' investors are back in the property market

A key buyer group has been making a noticeable comeback.

Kelvin Davidson
Last updated: 13 October 2025 | 4 min read
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AI summary

'Mum and Dad' investors are making a comeback, with their share of property purchases rising from 21% to a more normal 25%. This nationwide trend is led by smaller investors buying a second property or expanding a small portfolio.

These buyers are finding value in the soft market, often favouring new-builds which are exempt from LVR and DTI rules. Key drivers for their return include:

- The full reinstatement of Mortgage Interest Deductibility

- Lower interest rates reducing cashflow top-up needs

This trend is expected to continue.

The data shows a clear return

Who are they and what are they buying?

What’s driving the comeback?

Author

Kelvin Davidson Kelvin Davidson
Chief Property Economist, Cotality