City exodus predates pandemic
The exodus out of the capital cities is not just a Covidinduced phenomena, as the trend preceded the pandemic.
An Exodus to Lifestyle report from Hotspotting finds that while the pandemic made the trend more visible, it was already in place in the years leading up to it.
According to Hotspotting director Terry Ryder, Sydney has been losing its population for the past decade, while Melbourne has been losing for the past six years.
“Fundamentally, this big migration has been caused by the pursuit of lifestyle and affordability, enabled by technology – the ability to work remotely,” says Ryder.
Queensland has been the biggest beneficiary of this shift, with four spots in the top 10 list, while South Australia has three spots, Western Australia two and Victoria one.
Ryder says seaside hotspots like Byron Bay, the Gold and Sunshine coasts and the Mornington Peninsula have had phenomenal growth, but the report suggested people are also looking inland.
“I see people making a hill change rather than a sea change, focusing on the same motivations, such as affordability and lifestyle, but in more of a hinterland or country setting.”
Toowoomba in south-east Queensland took out the number one spot in the report, particularly as its inclusion in Brisbane’s 2032 Olympic bid has added to its strategic importance.
“The city’s affordability, low vacancies and solid yields is attracting a variety of property buyers to the region, including first-home buyers, tree changers, baby boomers, retirees and investors,” says Ryder.
Also on the list is the Queensland coastal town of Yeppoon, near Rockhampton, which attracted the second highest number of overseas searches for the states in 2022, according to Ryder.
“Despite this trend, local prices remain affordable, with Yeppoon and several nearby suburbs still having median house prices around $500,000.”
Port Lincoln, Murray Bridge and Mt Gambier were the top locations in South Australia, while Geraldton and Bunbury represent Western Australia and Mitchell Shire is the one location from Victoria.
“Buying in a regional centre can represent a win-win-win situation for investors – cheaper prices, higher rental yields and good potential for price growth.”