Why buyers continue to love regions

Research reveals a continued surge in the number of people moving from capital cities to regional centres.

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

The areas recording the largest growth in metro-movers were all located within a three-hour drive from Melbourne – a capital city that has endured the nation’s longest COVID-19-related lockdowns.

Key migration patterns in 2020-2021

• Melbourne saw its share of net capital city outflows increase to 47 per cent, from 39 per cent a year earlier;
• Sydney still had the highest share of net capital city outflows at 49 per cent, and regional NSW picked up the largest share of net migration into regional Australia (34 per cent);
• Regional Queensland’s share of net migrants from capital cities grew to 28 per cent, while the shares of regional NSW and regional Victoria shrank;
• Tasmania and South Australia each experienced an increase in regional settlement with a four per cent and six per cent share, respectively; and
• 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 one per cent a year earlier.

Skilled workers/families also migrating to New Zealand regions

A parallel scenario prevails in New Zealand. For example, of the Aucklanders leaving the region, high numbers were in their late 20s and 30s, with children.

This exodus of productive workers to other parts of New Zealand during the peak years of their working life exacerbates skills shortages in the major centres’ labour markets. 

But on the flip side, this presents increased growth opportunities and diversity for regions. 

Economic fundamentals for investors

Industry analysts recommend a broad-ranging local economy holds the key for investor attraction. For that reason, one-industry regions, such as tourism or mining, should be approached with caution.

Some of the key fundamentals include having a diverse and vibrant local economy, solid jobs growth, and a variety of industries such as health, construction, retail and education to adequately service its population.

In regional areas, the local economy must also be self-sufficient, which means local residents should live and work there as well as spend their money there. 

University studies confirm that well-connected, welcoming and sustainable regional communities are attracting buyers in droves. 

These winning attributes are what real estate agents should highlight when capitalising on this continual lifestyle boom. 

Content originally appeared on The Real Estate Voice Why buyers continue to love regions