The Sunshine Coast is still a favourite for Australians leaving capital cities, but more regional Australians are looking further afield, according to the latest Regional Movers Index (RMI).
The report, powered by Commonwealth Bank data and produced in partnership with the Regional Australia Institute (RAI), shows city dwellers continue to move to the Sunshine Coast and Greater Geelong – though at a reduced volume compared to this time last year.
The top five destinations for net internal migration were the Sunshine Coast, Greater Geelong, followed by third-placed Fraser Coast, which bumped Lake Macquarie into fourth ahead of Moorabool in fifth place.
Sitting north of the Sunshine Coast and encompassing Hervey Bay and Maryborough, the Fraser Coast has emerged as a popular destination for those making the move from one regional area to another.
RAI CEO Liz Ritchie said regional movers were looking further afield, leading to greater diversity in the top destinations for movers.
“We are seeing a trend of capital-city dwellers still choosing popular locations, but regional-to-regional movers looking elsewhere. Queensland remains popular, but regional movers are going further out from the Sunshine Coast in search of affordability,” Ritchie said.
“We are also seeing residents of Brisbane and Perth seek out the regions in greater numbers, a trend which is gaining momentum. Brisbane, which previously attracted net inflows, recorded net outflows to regional areas.”
Perth, meanwhile, went from being a net recipient of inflows to recording a balanced flow of migration, Ritchie said.
Capital to regional migration remains robust
Despite December traditionally being a softer relocation period, the seasonal drop in capital-to-region migration this year was smaller than the previous two December quarters, underscoring the continued momentum toward regional living.
Capital-to-regional migration accounted for 11.6 per cent of all relocations between local government areas across Australia. It was the second highest share since the end of the pandemic in 2022 and outpaced movement in the opposite direction (regional-to-capitals) by 31 per cent.
Sydney and Melbourne remain the major contributors to regional population growth, accounting for 54 per cent and 38 per cent of net outflows respectively.
Regional movers looking further afield
“While most city leavers are from Sydney and Melbourne, the other capitals are also seeing outflows. They might be seeking housing affordability or job opportunities,” Ritchie said.
“What hasn’t declined is interest in a regional move. Capital-to-region migration remains robust, recording the second highest migration figures since the end of the pandemic.
“The RAI has long campaigned for a National Population Plan that recognises regional movement and puts infrastructure and supports in place to ensure regions are ready and able to manage this influx. The RAI remains committed to seeing ‘40 for the Regions’ - a 40 per cent carve out for regional Australia that will see workforce, housing and share of voice delivered to regional Australia.”
A broadening of regional growth beyond the usual hotspots
Regional Tasmania, New South Wales, Victoria and Western Australia recorded the strongest annual net growth, in percentage terms. Areas like the Meander Valley and Waratah/Wynyard in Tasmania attracted both regional and city migration. Some capital city movers were also choosing smaller regional areas like Indigo in Victoria. Albury in New South Wales continues to prove popular, as does Gingin in WA.
CBA Regional and Agribusiness Banking Executive General Manager Kylie Allen said the RMI findings continue to make a case for investment in regional Australia.
“Long-term RMI trends show solid and consistent growth that we expect to continue. It’s a broadening of regional growth beyond the usual hotspots. Strong regional-to-regional movement and rising interest in centres like the Fraser Coast signal a maturing migration pattern, where people are making considered, long-term choices about where they live and work,” she said.
“That shift brings real opportunity and reinforces the need for coordinated planning around housing and investment in infrastructure so regions can sustain momentum and support growing communities.
“It also underpins business confidence and increased demand for locally supplied products and services. As a bank with a long history in regional communities, we’re committed to supporting local businesses and work alongside governments and other investors to ensure regions are well placed to manage growth and thrive over the long term.”
Allen said that infrastructure, housing and services for regional communities are even more imperative as recent CommBank data shows around a quarter of first home buyers are making that first home purchase in a regional or remote location.
“First home buyers choosing regional or remote areas can often buy a larger home at a more accessible price,” Allen said.
“We’ve also seen double-digit growth in business lending fundings in regional and agribusiness over the past five years. This all adds up to stronger and growing regional economies.”
