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“I think they also discovered that this is a really nice new town and when construction is complete some of the workers may decide to stay.”
KPMG economist Terry Rawnsley said that in addition to those one-off large projects that stimulated rental growth, the migration of urban population to peripheral areas also drove demand for a limited number of properties.
“We’ve seen some regional centres gain real economic dynamism over the past 18 months post-Covid,” he said. “Young people moving there, the growth of remote working has given these towns a real boost, and there also seems to be a greater focus on placemaking in these towns.
“As capital city prices become more expensive, more affordable regional markets look more attractive. These newcomers often prefer, and can afford, higher quality properties, which pushes up median prices.”
Other areas with big annual rent increases included Muswellbrook in the Upper Hunter, 120 kilometres north-west of Newcastle, where house rents rose 13.3 per cent to $510, and the Murray River region near Mount Kosciuszko in southeast NSW, where rents rose 11.8 per cent to $520.
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Anna Martaki of Warburton real estate agency Muswellbrook said the increase in demand was mainly due to people moving from Sydney for affordability reasons. “A lot of people came here during the pandemic and they are still coming now,” she said. “It’s a very pleasant area with a sense of community.”
It’s a similar story in the Murray River. “A lot of people have moved here from the metropolitan areas of the capital cities, initially as a result of COVID but it’s continued since then,” PRD Albury-Wodonga director Matt Sharp said.
“We also have very little stock, which is driving up rents and prices. It’s a very popular location for downsizers, with several universities, great hospital facilities, a cancer centre and rail and Hume Freeway close by.”
Australia’s regions are generally on a growth trend, with the Australian Bureau of Statistics estimating that by June 2023, the population of Australia’s regions will reach 9.78 million, an increase of 6% from 2018.
“Regional Australia now accounts for almost 40 per cent of the country’s population,” said Amanda Barwick, acting chief executive of the Regional Australia Institute.
“The Regional Migration Index for March shows the number of city dwellers choosing to live in regional areas hit a 12-month high and is now 20 per cent above the pre-COVID average.
“As a country we are not ready for that influx of people – that’s why we are seeing housing issues now … Our target on housing is to get the regional rental vacancy rate up above 3 per cent and to ensure that annual building approvals keep pace with population growth.”
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