Where are Canberra's out-of-town buyers coming from?

Where are Canberra’s out-of-town buyers coming from?

Canberra has retained second position as the fastest-growing state or territory in Australia, only marginally behind Victoria, with a healthy economic outlook and a resilient housing market that is helping to lure new residents to the nation’s capital.

Natural increases and overseas migration are the key elements driving Canberra’s population, while interstate migration is playing a smaller role – it is no longer a drag on the population growth statistics.

Population figures reveal that only four of Australia’s states or territories had a positive net flow of interstate migrants. Queensland and Victoria being the most popular among Australians moving interstate, with a net gain of just over 24,000 and just over 15,000 respectively.

Tasmania and the ACT also welcomed more residents from interstate than the number of residents choosing to move away. Tasmania had a net gain of almost 2200 and the ACT precisely 489.

Both arrivals and departures into and out of the ACT are at record highs. That said, Canberra has now notched over two years of positive annual flow of interstate migration.

The big question is – where are the out-of-area buyers coming from?

For Canberra, it is unsurprising that the most common moves have been from neighbour New South Wales. For those leaving the Territory the most likely location will also be NSW, where Canberra sees the vast majority of residents move, at 54.2 per cent of resident departures.

However, Canberra welcomes more residents from NSW than it loses, as well as the largest inward flow of residents compared to the numbers moving from other jurisdictions, with 56.1 per cent of interstate arrivals being from NSW. In the year to March, the net gain of residents from NSW was 679.

The next largest flow of positive interstate migration is received from Western Australia, South Australia and the Northern Territory. Most likely lured by better job prospects and greater economic prosperity. Canberra also experienced a small net gain of 47 residents from Tasmania in the year to March.

Canberra welcomes a positive flow of interstate migration from all states and territories, apart from two. Victoria and Queensland lure more Canberrans away than it attracts. In the year to March Canberra had a net loss of 622 residents to Victoria and a net loss of 393 to Queensland.

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The positive flow of internal migration into Canberra has slowed from the March 2017 peak (this was highest internal flow since 2011). Even though the internal flow is beginning to stall, it remains positive.

Property search behaviour appears to reflect tmigration patterns. The majority of prospective buyers are already residing in Canberra when viewing homes for sale, at 66.3 per cent of property views. The remaining 33.7 per cent of prospective buyers viewing property in the ACT originate from interstate or overseas.

The second-biggest cohort of property views originates from NSW at 25.9 per cent. Followed by Victoria at 2.4 per cent and Queensland at 1.5 per cent of all property views throughout August.

An improving economy, a high standard of living, job prospects and relative affordability compared with the neighbouring state capitals of Sydney and Melbourne has helped to drive the positive flow of interstate residents in to Canberra.