Sydneysiders are dominating migration, making up more than half of the Aussies on the move looking for a change of scene.
The nation’s most expensive capital is looking less and less attractive to property owners and renters, with the latest Regional Movers Index report showing more and more people are leaving behind the bright city lights for the regional life.
The report – a joint Commonwealth Bank and Regional Australia Institute (RAI) initiative – shows the lure of regional life continues to prove popular despite booming home prices.
Capital-to-regional migration made up almost 12% of all relocations between local government areas across Australia in the December quarter. This represented the second highest share of relocations since the end of the pandemic in 2022.
Those in Sydney, where the average home price is $1,255,000, make up 54% of net capital outflows significantly ahead of Melbourne (38%).
The Sunshine Coast remains the favourite destination for Australians leaving capital cities, followed by Victorian hotspot, Geelong. Queensland's Fraser Coast came in third position, followed by Lake Macquarie in New South Wales and the Melbourne-adjacent Moorabool region.
The Sunshine Coast remains the top spot for internal migration. Picture Lachie Millard
Fewer city dwellers are moving to the most popular two regions compared to this time last year however, with many looking even further afield away from easy capital city proximity.
“We are seeing a trend of capital-city dwellers still choosing popular locations, but regional-to-regional movers looking elsewhere,” RAI chief executive Liz Ritchie said.
“Queensland remains popular, but regional movers are going further out from the Sunshine Coast in search of affordability,” Ritchie said.
Regional prices climbed 0.6% in February, the latest PropTrack Home Price Index shows, up 10.5% year-on-year.
Mandurah, on Perth's southwest coast, is currently the highest growth region in the country by home price.
"Growth in regions has outpaced the capitals over the past year (10.5% vs 8.6%) and five years (59% vs 41%)," REA Group senior economist Eleanor Creagh said. “[This is] supported by relative affordability and lifestyle appeal.”
Western Australia is the country’s biggest success story of the past 12 months where home values are concerned, with the median cost of a home in the regions 14.9% higher than 12 months ago.
The median price of a regional home is also up 13.4% in Queensland, 13% in South Australia and 10.9% in Tasmania.
Home prices and internal migration are on the rise in Tasmania. Picture: Hype Productions
Residents of Brisbane and Perth are among looking to move to regional areas in greater numbers, a trend Ms Ritchie says is “gaining momentum” in the nation’s second and third most expensive capitals.
“Brisbane, which previously attracted net inflows, recorded net outflows to regional areas,” she said. “Perth, meanwhile, went from being a net recipient of inflows to recording a balanced flow of migration.”
While housing affordability was flagged as a key reason for Aussies to leave capital cities, Ms Ritchie said job opportunities were also contributing.
“What hasn’t declined is interest in a regional move,” she added.
“Capital-to-region migration remains robust.”
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