Australians are continuing to swap capital cities for regional centres, with relocations from capitals to regions outpacing moves in the opposite direction by more than one-third (36%), according to the latest Regional Movers Index (RMI).
Capital-to-regional moves accounted for 11.5% of all major relocations, well above the 8.4% moving from regions back to capitals.
Net migration to regional Australia rose 11.8%, marking one of the strongest periods of regional relocation since the COVID-19 pandemic. Sydneysiders made up 53% of net outflows and Melburnians 33%, with Adelaide and Perth also recording notable increases.
The latest national moving data suggests Australians are increasingly prioritising affordability, lifestyle and long‑term stability when choosing where to live, with many looking beyond capitals to achieve more space and better value.
Queensland’s Sunshine Coast retained its title as Australia’s most popular regional destination, recording the largest share of net internal migration.
“We continue to see the usual regions experiencing the largest net internal migration in the year to September 2025, ” said Regional Australia Institute (RAI) CEO Liz Ritchie (pictured left) in a CBA media release. “The perennially popular top three spots: the Sunshine Coast with 8.8% of total net internal migration to regions, Greater Geelong (7.7%), and Lake Macquarie (4.1%) all feature, with Fraser Coast (3.6%) and Moorabool (3.5%) in a battle for fourth and fifth favourite.
“Capital city people make up the bulk of the net migration to most of these regions. And interestingly, the Fraser Coast stands out for broad appeal for both city folks and regional movers. Its net migration comes from both these sources quite evenly.”
Ritchie said cooler-climate destinations in Victoria and Tasmania are seeing some of the sharpest growth.
“We are seeing interesting moves in the southern states with Victoria’s Wodonga seeing the strongest annual net migration growth, while three Tassie spots – Latrobe, Devonport, and Huon Valley – ranked second to fourth. Grouped together, these areas saw a five-fold increase in net migration over 12 months. Another Victorian local government area (LGA), Colac-Otway, rounded out the top five,” she said.
Western Australia is also shifting, with Perth moving from net inflows to net outflows.
“Perth has gone from receiving net inflows to seeing a net outflow with 3% of the share of total city movers, reversing a previous trend,” Ritchie said. “Regional WA is also attracting more movers, with its share of net inflows rising to 10% in the September quarter, up from 6% the previous year. Broome, Gingin and East Pilbara LGAs in Western Australia all feature among the growing destinations for capital city movers to regions.”
Kylie Allen (pictured right), CBA executive general manager regional and agribusiness banking, said while the Sunshine Coast and Greater Geelong remain major drawcards, North-West Tasmania is fast becoming a standout growth region.
“North-West Tasmania is positioning itself as a growth region, with ongoing investment in infrastructure upgrades and economic development initiatives," Allen said. “Coupled with a strong base of established industries, particularly the agriculture sector, its strategic port position, and easy access to Tasmania’s stunning landscapes, the region is an increasingly compelling place to work, live and invest.”
Allen said similar momentum is building in regional Victoria, especially around the border cities.
“Wodonga and neighbouring Albury are seeing investment and infrastructure developments across transport, education, health and defence, creating jobs, and strengthening the local economy,” she said. “We’ve seen our own business customers benefit from an uplift in trade due to the inflow of new residents, and other businesses pivot and diversify into different areas to meet new demand.
“While the outlook is positive, attracting and retaining skilled professionals remains a challenge across regional areas. Even with a growing population, some sectors remain under pressure. Continued investment in training and upskilling will be key to meeting demand.”
The RMI, a partnership between the RAI and Commonwealth Bank of Australia (CBA), tracks internal migration flows to help governments, businesses, and communities plan for growth across regional Australia.
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