Recent reports have suggested that the housing market has fared better in regional cities and suburbs, away from Sydney and Melbourne.
Analysing data from the Australian Bureau of Statistics (ABS), Propertyology has put this phenomenon down to internal migration away from Australia’s big cities — causing property prices to increase in non-capital city locations.
It’s not all about population
The Australian population grew by 391,000 during the year ending 2018, with overseas migration making up 61 per cent of this.
However, while 66 per cent of the population growth occurred in capital cities, population growth does not seem to determine the actions of the property market.
“Far too much emphasis is placed on the role in which population mass and population growth plays on property price fluctuations,” Propertyology managing director, Simon Pressley said.
“Population growth isn’t a useful factor for market growth, as overseas migrants very rarely buy property, and population growth includes births, which add no supply to the market, and deaths, which add some supply, however not a significant number.
“Examining where Australians are choosing to move and settle is a better indicator for where growth is to be expected.”
Both Sydney and Melbourne saw the most growth in real terms, with each city gaining about 77,000 newcomers through overseas migration in the year ending June 2018. But, both cities suffered heavily when it came to internal migration numbers.
The data collected showed that 14 of the top 30 councils recording internal migration losses came from Sydney and a further six came from Melbourne.
Sydney was also the city that recorded the largest number of departures, with 27,434 residents leaving the NSW capital in favour of other locales around the country.
While Greater Melbourne had a net gain in population from internal migration, Propertyology suggests that 21 out of 27 Melbourne city councils saw a net population loss due to internal migration.
Where are Australians going?
The big winner from internal migration appears to be the Gold Coast in Queensland, after the beach-side city gained 7,441 new residents from around Australia.
“The reason for this may be financial factors,” Mr Pressley said. “The median house price on the Gold Coast being 60 per cent that of Sydney’s.”
Perhaps now is the time to buy in the Queensland city. If it appeals to you, look no further than Sea Palm Beach, situated just minutes away from the Gold Coast.
Ideally located in the heart of Palm Beach village, Sea Palm Beach offers an unrivalled coastal lifestyle, with views from the ocean to the hinterland and the luxury of everyday lifestyle amenities at your doorstep.
Along with the Gold Coast, the Sunshine Coast, Geelong, Maitland and Port Macquarie were all top locations for internal migration, many of which saw increased median house prices to match.
If you’re thinking about buying on the Sunshine Coast, then Plaza Central, Maroochydore could be your perfect choice.
A place where urban convenience meets coastal living, Plaza Central is ideally located in an area undergoing significant growth and development, with a diverse and vibrant economy, a stunning climate and a perfect balance of community and beach lifestyle.
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