Why Property Prices in Australia are Shifting: The Regional Boom

Despite hopes that the shift away from capital cities might stabilize after the pandemic, new data shows regional migration is at a record peak. The index is up 20% compared to the previous quarter, indicating an accelerating trend of residents leaving cities like Sydney and Melbourne for regional living.

The Sunshine Coast remains the top destination for regional moves, followed by Geelong, the Fraser Coast, Murabul, and Lake Macquarie. New hotspots are also emerging in areas like Toowoomba, Broome, and Townsville, highlighting a diverse spread of population growth across the country.

The combination of high population inflows and a limited housing supply is creating upward pressure on prices. Additionally, high construction costs—driven by a shortage of trades and supply chain issues—make purchasing established, more affordable homes more attractive to buyers than new builds, sustaining demand.

As capital city markets like Sydney face downward pressure, many regional markets with median prices under one million dollars continue to rise. Investors should prioritize these areas, but must also perform thorough due diligence regarding unemployment, job diversity, and local amenities rather than relying solely on affordability.