Regional Remain In Demand
While Regional Australia continues to attract those moving from capital cities, the pace of growth is easing.
The June 2025 Quarter Regional Movers Index shows that the number of capital-city people moving into the regions fell to its lowest level since the December 2019 quarter - dropping by 19.3%.
Despite the decline, people moving from cities to regions still outpace those moving in the other direction by 26%.
Migration from capitals to regions in the June 2025 quarter accounted for 11.2% of all internal migration.
The majority of those moves were to Regional New South Wales and Regional Queensland, followed by Regional Victoria.
The Sunshine Coast returned to the number one spot for net migration to Australia’s regions in the year to June 2025. Greater Geelong had led the list in the previous quarter but is now back in second place.
Lake Macquarie is in third place, followed by Maitland and Queensland’s Fraser Coast rounds out the top five.
First Home Buyers, Buying
Australia’s more affordable property markets are experiencing an increase in activity.
The PropTrack CommBank First-Home Buyer Report 2025 says many first-home buyers are finding a way to get into the market.
PropTrack executive manager of economics, Angus Moore, says that many are seeking homes in more affordable areas or purchasing semi-detached homes or units to overcome affordability challenges.
The report shows most first-home buyers are purchasing with less than a 20% deposit, taking advantage of government schemes and family guarantors to buy.
It shows that in the top 20 hotspots where first-home buyers are searching relative to other buyers, nearly half of the locations are in Melbourne's outer suburbs.
Dandenong took out the number one position with almost twice as many first-home buyers as is typical across Australia. The Brunswick - Coburg region is second, followed by Darebin and Moreland.
The only non-Victorian entries in the top ten are Gungahlin and Molonglo in Canberra and Hobart’s north-western region.
Student Accommodation Rising
Australia’s student accommodation sector is surging ahead with new data showing there will be 144,300 beds by 2027.
An increase in student accommodation beds is seen as a win for the broader rental market, as it helps free up private rental properties.
The latest Urbis Student Accommodation Benchmarks report says 1,045 beds are expected to be completed this year, with an additional 11,200 to be built between 2025 and 2027.
The Federal Government will allow public universities to grow their international student numbers in 2026 if they can demonstrate the delivery of additional student accommodation.
Student Accommodation Council Executive Director, Torie Brown, says there will be a strong wave of new supply in the coming years.
“With the election behind us, investors in student accommodation are looking at Australia with confidence again,” she says.
“We need governments to treat PBSA as an asset class of priority and make it easier for projects to get out of the ground.”
Listing Rise In Time For Spring
Property listings rose by 5.2% over August, giving buyers more to choose from in spring.
But despite the rise, SQM Research figures show listings remain 4.2% lower than at the same time last year.
Listings are up the most in Melbourne, 11.5% over August, and Sydney, 9.8%.
SQM Research Managing Director Louis Christopher says listing in August rose in all but one capital city - Hobart, which is down by -3%.
Over the past 12 months, Darwin listings are down by 36.9% and Brisbane is down 11.6%. Hobart dropped 5.5% and Melbourne 4.8%.
Perth listings are up 9.2%, while the ACT is up 2.9% and Adelaide is up 2.1%.
Christopher says overall, the market is showing signs of life, but it’s uneven.
“We’re not in boom territory, and vendors need to be realistic. Buyers are still discerning, and overpriced stock is sitting. The spring season will be a litmus test for sentiment and price elasticity."
QUOTE OF THE WEEK
Student Accommodation Council Executive Director, Torie Brown
“With the election behind us, investors in student accommodation are looking at Australia with confidence again,” she says.
Sentiment Strong
Housing-related sentiment is shifting with a strong rise in the number of Australians who think now is a good time to buy.
The latest Westpac Housing Pulse shows a 10% increase in the time to buy a dwelling index.
The increase in sentiment has led Westpac’s economists to increase their predictions for stronger price growth by the end of 2025.
Westpac Senior Economist Matthew Hassan says the shift in sentiment is tempered a bit by ongoing affordability issues.
“Buyers are coming back and saying now’s the time, and sellers are slow to mobilise,” he says.
The report shows that forward-looking indicators are improving, including that auction clearance rates are above long-run averages in Sydney and Melbourne.
Pre-auction withdrawals have also been tracking lower since March, which Hassan says is another sign of a strengthening market.
The report says all major capital city markets have experienced positive price gains over the last three months, ranging from 1% in Melbourne, to 1.7% in Sydney, 2.1% in Adelaide, 3% in Brisbane and 3.1% in Perth.
