I know some “experts” recommend investing in regional Australia, but I wouldn’t.
While some regional centres are great places to live and bring up your kids, they are not the right locations to invest in property.
And this obviously translates to lower population growth.
This has been confirmed by a new set of data from the Australian Bureau of Statistics called “RIME”, or the Regional Internal Migration Estimates.
Here’s a summary of what they had to say:
This chart shows the relative split of population by state and territory.
The orange bars are the regional (ex-metropolitan) part of state.
See how NSW and Queensland make up the majority of Australia’s population living outside a capital city?
They are relatively more dispersed than other states.
Actually Tasmania is the most dispersed but its population is very small.
This table shows the mismatch between the amount of population growth going to regional areas, compared to the amount of population living in them.
So for instance in NSW, 36.7% of population lives outside Sydney, but only 25.1% of growth occurred there in the 2009-2014 period, a mismatch of 10.6%.
Victoria is particularly interesting, with 87% of all the state’s growth being in the Greater Melbourne region.
|State||Regional part of state share of growth||Mismatch to share of population|
But this is beginning to change
What the regional migration estimates show for 2013/14 is that there is a significant shift, but it’s only affecting one metropolitan area – Sydney.
Is it congestion, extremely high housing prices, or just the presence of larger regional centres with strong economies?
But people are leaving Sydney in significant numbers, and moving to regional NSW, Melbourne and Regional Victoria.
In just one year, Greater Sydney had a net migration loss of nearly 15,000 people
This is more than offset by the large amount of overseas migration the city receives, but it was by far the largest loss to internal migration, and you can see a lot of it is into regional NSW.
In contrast, Melbourne is growing but Regional Victoria added more people through internal migration.
Again, Melbourne gains a lot of overseas migrants to make up for it.
Elsewhere in the country, Adelaide also lost people, as did Tasmania outside Hobart, while both Darwin and the rest of NT lose people interstate.
Both Brisbane and the rest of Queensland had gains.
This is what the picture looks like when you add in the other components of population change, natural increase and overseas migration.
You can see that though regional growth is much smaller, both Regional NSW and Regional Victoria rely in migration from within Australia for a lot of their population growth, while Melbourne, Sydney and to a lesser extent Perth rely on overseas migration.
This is an interesting trend, and it pre-dates the most recent very large increases in housing prices.
We’ll be monitoring this closely, to see if there are more people fleeing Sydney in coming years due to housing prices, and whether this spreads to other capital cities as well.
Subscribe & don’t miss a single episode of Michael Yardney’s podcast
Hear Michael & a select panel of guest experts discuss property investment, success & money related topics. Subscribe now, whether you're on an Apple or Android handset.
Need help listening to Michael Yardney’s podcast from your phone or tablet?
We have created easy to follow instructions for you whether you're on iPhone / iPad or an Android device.
Prefer to subscribe via email?
Join Michael Yardney's inner circle of daily subscribers and get into the head of Australia's best property investment advisor and a wide team of leading property researchers and commentators.