Southern Comfort: Investing in Australia’s Next Big Property Wave

Australia's property landscape is experiencing a significant shift, with regional areas emerging as prime hotspots for property investment. As revealed in the latest June 2024 Regional Movers Index, the trend of internal migration from capital cities to regional areas continues to thrive, offering promising opportunities for investors seeking growth and stability in the property market.

The Migration Wave: A Positive Indicator for Regional Investments

The Regional Movers Index, powered by data from the Commonwealth Bank of Australia (CBA) and the Regional Australia Institute (RAI), highlights a sustained movement of Australians from bustling capital cities to the more tranquil and affordable regional areas. This internal migration trend, which gained momentum during the COVID-19 pandemic, shows no signs of slowing down. In fact, the latest data indicates that the population flow from capital cities to regional areas remains 16.4% above pre-pandemic levels, with 11.2% of all internal migration now directed towards regional Australia.

This sustained migration wave presents a golden opportunity for property investors. As more Australians seek the lifestyle benefits and affordability of regional living, the demand for housing in these areas is on the rise. This demand is driving up property values and rental yields, making regional areas an increasingly attractive option for investors looking to diversify their portfolios.

Key Regional Hotspots: Where to Invest

The report identifies several regional hotspots that are benefiting the most from this migration trend. Notably, regions in New South Wales and Victoria are attracting the lion's share of city movers. Regional New South Wales, in particular, accounted for 42% of all net regional inflows, with popular areas like Lake Macquarie and the Central Coast seeing significant growth. Victoria's Greater Geelong and Moorabool regions also emerged as key destinations, capturing a substantial portion of the migration flow.

Investors should pay close attention to these regions as they continue to experience strong demand for housing. The Sunshine Coast in Queensland remains a perennial favourite, retaining its number-one spot for net internal migration for seven consecutive quarters. Meanwhile, emerging areas like Lake Macquarie in New South Wales have recorded the highest annual and quarterly growth rates, signalling robust investment potential.

The Economic and Lifestyle Appeal of Regional Living

The appeal of regional living extends beyond affordability. Many of these areas offer thriving local economies, bolstered by industries such as agriculture, tourism, and healthcare. This economic diversity provides a solid foundation for sustainable population growth and housing demand. Additionally, the lifestyle benefits—such as reduced congestion, access to nature, and a slower pace of life—are key drivers for those relocating from capital cities.

For investors, this means a stable and growing market. As more Australians move to regional areas, properties in these regions are likely to see continued appreciation in value, coupled with strong rental demand.

The Future of Regional Property Investment

Looking ahead, the trend of internal migration to regional areas is expected to persist, driven by ongoing housing affordability issues in capital cities and the increasing desirability of regional lifestyles. As the gap between migration flows from cities to regions and vice versa continues to widen, the net migration to regional areas is tracking 42.5% above pre-COVID levels, according to the report.

This sustained demand positions regional areas as key investment targets for those looking to capitalise on Australia's evolving property market. Investors who act now can take advantage of the current market dynamics, securing properties in regions that are poised for long-term growth.

Conclusion: Seizing the Opportunity

The internal migration trend presents a unique opportunity for property investors to tap into the growing demand for regional housing. With regional areas continuing to attract a significant share of internal migration, now is the time to consider investing in these burgeoning markets. By doing so, investors can not only diversify their portfolios but also secure assets in regions that are set to benefit from sustained population growth and economic stability.

As Australia's love affair with regional living shows no signs of abating, the potential for property investment in these areas is undeniable. The time to act is now—embrace the opportunities that regional Australia has to offer and position yourself for success in the evolving property landscape.

Interested in exploring property investment opportunities in these thriving regional markets? Contact Property Club today at enquiries@propertyclub.com.au for expert guidance and access to exclusive investment opportunities.

*References: CBA and RAI Regional Movers Index June 2024 Report