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The Australian population is increasingly on the move from capital cities to regional areas due to rising cost-of-living pressures, according to the Regional Australia Institute and Commonwealth Bank of Australia (CBA).
The latest Regional Movers Index (RMI) was released yesterday (1 November), displaying the trends in domestic migration over the September 2023 quarter.
According to the research, regional NSW was the most desirable location for those leaving capital cities in the September quarter, overtaking regional Queensland.
The RMI found that almost two in five people (39 per cent) moving from cities relocated to regional NSW in the 12 months to September 2023, up from 26 per cent in the previous period.
Regional Queensland was the second most desirable location at 33 per cent, down from 37 per cent the previous year, with Victoria the third most popular with 21 per cent of all outflows from capital cities.
Sydney had the highest percentage of emigration.
Regional Australia Institute chief executive Liz Ritchie stated: “When you look at all the people who left cities for the regions in the last year, 80 per cent of them came from Sydney.
“In the 12 months to September 2022, it was just over 60 per cent. It suggests that the bigger our cities get, the stronger the draw to our wonderful regions becomes.”
The latest data found that capital-to-regional migration is currently tracking 11.7 per cent above the pre-COVID-19 average.
The report stated: “As cost-of-living pressures escalate, the latest data show city dwellers are continuing to flock to the regions at a higher rate than those moving in the opposite direction.
“In the 12 months to September 2023, capital to regional migration accounted for an 11 per cent share of all relocations, compared to 9.1 per cent making the move from the regions to the city.”
While regional NSW is the most desirable destination, only one NSW local government area (LGA) featured in the top five LGAs by share of net capital to regional migration in the 12 months to September.
The Sunshine Coast in Queensland was the top LGA with a 13 per cent share, followed by the Gold Coast, Queensland (9.2 per cent); Moorabool, Victoria (5.7 per cent); Lake Macquarie, NSW (5.4 per cent) and Greater Geelong, Victoria (5.1 per cent).
The report noted that the popularity of the LGAs predominantly showed a preference to still be in close enough proximity to the capital city.
Speaking to Mortgage Business about the findings, Sunshine Coast local Ditte Moller, mortgage broker and director of Viking Mortgages, agreed that while there was a substantial influx of people fleeing the capitals for the Queensland regions during COVID-19, it had dramatically reduced in the past year or so.
Ms Moller said: “There was a huge influx during COVID-19, a massive influx from interstate, especially from Sydney and Melbourne to this area.
“To be honest I think that this year there’s actually a lot of them moving back to the capital cities. Quite a few of my clients that bought here are now looking at going back home to where they came from and putting their properties here on short-term rentals so they still have access to them but they could go back.
“So many people wanted to buy properties up here and move up here as it was the dream place to be during COVID-19. Now that things have settled down a bit, everything’s gone back to normal, some people actually have to go back into the offices but also a lot of people thought that the lifestyle is maybe not for them.”
She added that there had been a “definite softening” in the amount of business Viking Mortgages had been doing this year compared to last, particularly due to affordability being hard for people.
However, Ms Moller said business was beginning to build up again as people got used to being at a higher interest rate so they’re “no longer as fearful as they were”, with a lack of stock on the market in the Sunshine Coast area now the key issue.
CBA executive general manager regional and agribusiness banking Paul Fowler stated: “When it comes to regional hotspots at a local government area level, the Sunshine Coast firmly cemented its spot as the most popular destination for movers, topping the top five list for the fourth consecutive quarter.
“Regional centres like these are buzzing with business activity and investment and offer the lifestyle benefits of a regional location – more affordable housing, cheaper cost of living, less traffic congestion, strong community connections – within comfortable community distance of capital cities.”
[Related: Housing investment bill set to unlock funds for regional Australia]
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