According to the June quarter Regional Movers Index, there was an 11% rise in the number of people moving from capital cities to regional areas compared to June quarter 2020. 

The report shows that the largest growth in metro-movers were in regional centres within three hours of Melbourne - the capital city that has endured the longest lockdowns. 

Commonwealth Bank’s Executive General Manager for Regional and Agribusiness Banking, Grant Cairns, said that soaring house prices and with many now working from home, moving regional has become a realistic option.

"The experience of lockdowns is front of mind for Victorians, so the desire to seek a tree change is rapidly growing. It is positive to see the development of infrastructure - particularly in regional areas – is growing to meet the increased demand," Mr Cairns said.

Rsz_regional_graph_1.jpg

Source: RAI

Key migration patterns by state in 2020/21:

Melbourne saw its share of net capital city outflows increase to 47%, from 39% a year earlier.

Sydney still had the highest share of net capital city outflows at 49% and regional NSW picked up the largest share of net migration into regional Australia (34%).

Regional Queensland's share of net migrants from capital cities grew to 28%, while the shares of both regional NSW and regional Victoria shrank.

Tasmania and South Australia each saw an increase in regional settlement with a 4% and 6% share, respectively.

Perth was the only capital to see more people moving into the city than leaving, while regional WA’s share of net regional migration rose to three per cent from 1% a year earlier.

Regional Housing Squeeze

RAI's Chief Economist Dr Kim Houghton said the index also identifies which regional areas are emerging as desirable destinations. 

"This enables local leaders and business owners to prepare for a burst of population growth," Dr Houghton said.

The housing squeeze caused by city goers looking for a tree change is also impacting regional communities as rental markets become more competitive and expensive. 

"We can also see that the number of regional residents choosing to stay put has increased, which is likely to be contributing to the housing squeeze in some areas," Dr Houghton said.

Rsz_regional_graph.jpg

Source: RAI

Advertisement

Buying a home or looking to refinance? The table below features home loans with some of the lowest interest rates on the market for owner occupiers.

Update resultsUpdate
Filters
LenderHome LoanInterest Rate Comparison Rate* Monthly Repayment Repayment type Rate Type Offset Redraw Ongoing Fees Upfront Fees Max LVR Lump Sum Repayment Additional Repayments Split Loan Option TagsFeaturesLinkComparePromoted ProductDisclosure
6.04% p.a.
6.08% p.a.
$3,011
Principal & Interest
Variable
$0
$530
90%
4.6 Star Customer Ratings
  • Available for purchase or refinance, min 10% deposit needed to qualify.
  • No application, ongoing monthly or annual fees.
  • Quick and easy online application process.
Disclosure
5.99% p.a.
5.90% p.a.
$2,995
Principal & Interest
Variable
$0
$0
80%
Apply in minutes
  • No application or ongoing fees. Annual rate discount
  • Unlimited redraws & additional repayments. LVR <80%
  • A low-rate variable home loan from a 100% online lender. Backed by the Commonwealth Bank.
 Disclosure
6.09% p.a.
6.11% p.a.
$3,027
Principal & Interest
Variable
$0
$250
60%
  • No annual fees – None!
  • Get fast pre-approval
  • Unlimited additional repayments free of charge
 Disclosure
Important Information and Comparison Rate Warning

Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the ‘Compare Home Loans’ table allows for calculations to be made on variables as selected and input by the user. Some products will be marked as promoted, featured or sponsored and may appear prominently in the tables regardless of their attributes. All products will list the LVR with the product and rate which are clearly published on the product provider’s website. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. *The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Rates correct as of . View disclaimer.

Important Information and Comparison Rate Warning

Image by City of Gold Coast via Unsplash



Ready, Set, Buy!


Learn everything you need to know about buying property – from choosing the right property and home loan, to the purchasing process, tips to save money and more!

With bonus Q&A sheet and Crossword!

Download Free
By subscribing you agree to our privacy policy