Tree-change continues to drive regional property growth
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Photo by Curtis Adams
Regional areas continue to attract city dwellers despite the end of pandemic lockdowns, with nearly 8000 Australians moving from capital cities to country areas in the September quarter last year.
The migration trend is driving property price growth in regional hotspots, according to REA Group’s 2025 Hot 100, which identifies suburbs with strong growth prospects.
Australian Bureau of Statistics data shows 7901 people moved from capital cities to regions in the three months to September 2024.
While this figure is below the record 11,800 people who relocated in March 2021, it demonstrates the ongoing appeal of regional living.
Murray Bridge in South Australia recorded the highest year-on-year growth among regional “tree-change” suburbs on the Hot 100 list, with house prices increasing 22.5% to $490,000 in the year to February.
The South Australian town also experienced remarkable five-year growth of 120.7%, according to PropTrack data.
Regional Queensland dominated the tree-change category, with the state recording a net population gain of 3328 people through internal migration.
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Nambour in Queensland showed the strongest long-term performance, with house prices rising 8.6% to $769,000 and unit prices increasing 9.7% to $540,000 over the past decade.
By comparison, regional NSW gained 2091 people, Victoria 1846, South Australia 457, and Western Australia 306 through internal migration.
Not all tree-change suburbs saw immediate price growth, with Orange in New South Wales recording a 1.1% annual decline in its median house price.
However, Orange’s 10-year price growth of 7.3% remained strong, highlighting the importance of long-term data in assessing property market performance.
The 10-year figures provide a clearer picture of normal growth patterns, with more than half the suburbs on the Hot 100 list seeing house prices increase by over 6.8% during the decade.
None of the Hot 100 suburbs recorded declines in house prices during the 10-year period to February, despite some experiencing short-term dips following strong five-year growth.
The data demonstrates how population movement, particularly internal migration or “tree-changing,” can significantly influence property prices and suburb desirability.