New data show cooler-climate destinations are gaining momentum
Australians continue to favour regional living over capital cities, with relocations from metropolitan areas to the regions outpacing moves in the opposite direction by more than one-third, according to the latest Regional Movers Index.
The September 2025 quarter report, released Monday, showed capital-to-regional moves accounted for 11.5% of all major relocations, compared with 8.4% for region-to-capital moves.
Southern states gain traction
While Queensland’s Sunshine Coast retained its position as Australia’s most popular destination, with 8.8% of total net internal migration to regions, Regional Australia Institute CEO Liz Ritchie said a growing number of Australians are opting for cooler climates.
“We are seeing interesting moves in the southern states, with Victoria’s Wodonga recording the strongest annual net migration growth, while three Tasmanian locations – Latrobe, Devonport, and Huon Valley – ranked second to fourth,” Ritchie said.
“Grouped together, these areas saw a fivefold increase in net migration over 12 months.”
Victoria’s Colac Otway rounded out the top five growth areas.
Migration trends continue
The report showed net migration to regional areas increased by 11.8%, marking one of the highest levels of regional relocations since the COVID-19 pandemic.
Sydney and Melbourne led the outflows, with Sydneysiders accounting for 53% of net departures and Melburnians contributing 33%. Adelaide and Perth also recorded notable increases in departures.
The perennially popular Sunshine Coast was followed by Greater Geelong (pictured: Geelong waterfront), with 7.7%, and Lake Macquarie, with 4.1%, of total net internal migration.
Infrastructure challenges ahead
Commonwealth Bank executive general manager for regional and agribusiness banking Kylie Allen said north-west Tasmania was positioning itself as a growth "with ongoing investment in infrastructure upgrades and economic development initiatives".
“Coupled with a strong base of established industries, particularly the agriculture sector, its strategic port position and easy access to Tasmania’s landscapes, the region is an increasingly compelling place to work, live and invest," she added.
Allen said similar momentum was evident in regional Victoria, with Wodonga and neighbouring Albury seeing investment across transport, education, health, and defence.
“While the outlook is positive, attracting and retaining skilled professionals remains a challenge across regional areas,” she said.
The Regional Movers Index, a partnership between the Regional Australia Institute and Commonwealth Bank of Australia, tracks movements between Australia’s regions and capital cities using data from relocations among more than 14.6 million customers.
