Regional Property Boom - Population Growth Driving Demand

Population Surge Fuels Regional PropertyBoom in Australia

Australia’s population is growing at a rapid pace, with 484,000 new residents added in the 12 months leading up to September 2024, according to data from the Australian Bureau of Statistics (ABS). This surge is placing significant pressure on housing availability across all sectors, including homeownership, rental properties, and emergency accommodation.

‍

State-by-State Growth Driving Demand

Western Australia recorded the fastest population growth, expanding by 2.5%, followed closely by Victoria at 2.1% and Queensland at 2%. As demand increases, so too do property prices—a trend that is pushing more people to explore housing options in regional parts of the country.

‍

The Rise of Regional Migration

The Regional Australia Institute's latest Regional Movers Index highlights that internal migration to regional areas has become a structural trend rather than a short-term response to pandemic conditions. The index reveals a four-fold increase in migration from capital cities to regional centres such as Bendigo (VIC) and Bunbury (WA).

Bendigo, in particular, has experienced a staggering 63% quarterly growth in migration from capital cities, with a year-on-year increase that places it just behind Bunbury as the fastest-growing regional hub in the country.

‍

Implications for the Property Market

As people relocate, house prices often follow. Bunbury exemplifies this trend, with its median house price rising by 28% in 2024—the highest growth rate of any regional centre in Western Australia. This rapid rise in property values is contributing to mounting rental stress, particularly in areas that were traditionally seen as affordable.

With housing supply still trailing behind the pace of population growth, migration—both international and domestic—continues to be a major force shaping housing demand across the country.

‍

Spotlight on Ballarat: A Regional City on the Rise

Ballarat, located within commuting distance of Melbourne, has been a key beneficiary of this regional shift. Its population grew substantially during the COVID-19 pandemic and has continued to increase ever since. ABS data identifies Ballarat as the fastest-growing inland city in Australia.

Beyond its population growth, Ballarat has also been recognized for its exceptional liveability. According to research conducted by RMIT’s Urban Research team, Ballarat ranked in six out of sevenkey measures in their assessment of Australia's 21 largest regional cities. 

With low vacancy rates, strong rental yields, and strategic transport links, Ballarat remains an attractive regional center for those seeking alternatives to Melbourne's property market. 

‍

Conclusion

As Australia’s population continues to expand, the ripple effects are being felt most strongly in regional markets. Cities like Ballarat, Bendigo, and Bunbury are emerging as the new frontiers of property growth, liveability, and demand. With migration trends shifting and housing supply lagging, regional Australia is no longer a secondary option—it’s becoming the main stage of the country’s real estate story.

References: 

1. Terry’s View – Migration Pushing UpDemand (Hotspotting) 

2. https://www.rmit.edu.au/news/all-news/2020/march/australias-most-liveable-regional-cities

‍