The proportion of property investors active in the marketplace is back to its long-term average, comprising 34% of mortgage demand, based on the value of new mortgage commitments.

According to ABS lending indicators, at a state level NSW is receiving the bulk of the interest, with investors accounting for 38% of the value of new mortgage lending across the state.

At the other end of the scale, only 24.5% of mortgage commitments were for investment purposes across Tasmania and 28% in Western Australia.

What really strikes me is that Western Australia, or Perth as the capital city, has one of the lowest portions of investment activity but the highest gross rental yields among the state capitals, at 4.9% and arguably some of the best prospects for capital gains.

Additionally, the entry point to the market is more achievable, with Perth home values recording the lowest median of the state capitals and prices are proving to be pretty resilient through the rate hiking cycle so far, in fact Perth is the only capital city where housing values have recovered to a new record high.

To me, the fundamentals suggest it is a location that presents one of the best investment opportunities around the country. And yet we're not seeing investors very active in that marketplace.

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