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Regional Australia continues to attract city dwellers despite national slowdown

Regional Australia remains a magnet for city dwellers, with 26 per cent more people moving to regional areas than those heading in the opposite direction.

According to the latest Regional Movers Index (RMI) for the June Quarter, the Sunshine Coast has reclaimed its position as Australia’s top regional destination for net migration in the year to June 2025, overtaking Greater Geelong which had briefly claimed the top spot in the March quarter.

Several regional centres are experiencing strong growth, with Albury in NSW recording a 16-fold increase in net migration from capital cities over the past year.

“Regional Australia is no longer a second choice โ€“ it’s the smart choice, ” Liz Ritchie, CEO of the Regional Australia Institute (RAI) said.

โ€œFrom career opportunities to community connection, the regions are delivering.” 

The report reveals that while overall movement across Australia declined by 15.2 per cent, including capital-to-capital relocations, specific regional areas continue to thrive as migration hotspots.

Queensland has strengthened its position as a leading destination for internal migration, increasing its share of net movement from capital cities to regional areas from 19 per cent in 2023-2024 to 31 per cent in 2024-25. 

This places Queensland second only to New South Wales, which accounts for 34 per cent of regional migration.

Tasmania has also seen a positive shift, reversing previous outflows to record a 4 per cent net inflow to its regional areas.

The East Pilbara region in Western Australia topped the list of growth hotspots with a remarkable 311 per cent annual increase in migration, followed by Hinchinbrook in Queensland, Murrindindi in NSW, Greater Shepparton in Victoria, and Albury in NSW.

Kylie Allen, CBA’s Executive General Manager Regional and Agribusiness Banking, highlighted the appeal of regions like Albury-Wodonga.

“Albury and neighbouring Wodonga offer exceptional lifestyle and economic opportunities attracting both business investment and workers choosing to relocate there,” Ms Allen said. 

“With more affordable land in close proximity to major cities and airports, a range of major employers based there that are continuing to recruit, educational institutions and many lifestyle benefits, it’s no surprise to see how these regions are thriving.”

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Rowan Crosby

Rowan Crosby is a senior journalist at Elite Agent specialising in finance and real estate.