Victoria's Greater Geelong has toppled a two-year winning streak by overtaking Queensland's Sunshine Coast to become the country's most popular destination among Australian movers, after securing regional Australia's biggest share of net internal migration.
The latest Regional Movers Index (RMI) report shows in the 12 months to March, the Greater Geelong local government (LGA) had a 9.3 per cent share of total net internal migration, compared with the Sunshine Coast's 8.9 per cent.
The southern change comes amid an uptick of movement out of metropolitan areas to the regions, with capital city to regional relocations increasing by almost 11 per cent on last quarter to sit 20.5 per cent above the pre-COVID average.
The RMI is a partnership between the Regional Australia Institute (RAI) and the Commonwealth Bank of Australia (CBA), which analyses quarterly and annual trends in people moving to and from Australia's regional areas.
RAI CEO Liz Ritchie said the data in this quarter's report demonstrates shifting migration patterns within Australia.
"The nation's love affair with regional life is showing no signs of abating with 25 per cent more people moving from capital cities to the regions, than back in the opposite direction. Further, net migration to regional Australia is now sitting 40 per cent higher than the prevailing level in the pre-pandemic era," Ms Ritchie said.
"Regional Australia is being reimagined. The regions' enviable lifestyle offerings, buoyant jobs market, position as an economic leader and diverse communities are proving to be an ongoing lure, particularly for those in metropolitan areas. Contemporary regional Australia has what people are looking for and it's clear clichéd images and misconceptions about regional living are well and truly a thing of the past."
Greater Geelong's ascent on the leaderboard was set against a background of a rise in popularity in regional Victoria as a whole. The state captured 34 per cent of the total net inflows into all of regional Australia during the March 2025 quarter, larger than the 28 per cent share in the March 2024 quarter.
In addition, the two LGAs that recorded the highest annual growth in total net internal migration inflows were also in Victoria: Latrobe and Murrindindi.
CBA Acting Executive General Manager Regional and Agribusiness Banking Josh Foster said it demonstrates the vitality of Victoria.
"It's pleasing to see annual population growth is continuing to benefit Australia's regional economy as more people are drawn to the lifestyle and employment opportunities found beyond metropolitan areas. In a first for the RMI, Greater Geelong has become the star performer due to its idyllic location, established services and range of employment opportunities. This is underpinned by significant government and corporate investment in the region, including the Geelong Convention Centre which is due to be completed in 2026, and the Barwon's Women and Children's Hospital renovation and expansion expected to be completed in 2026/2027," said Mr Foster.
"To support the demand for housing, a target of an additional 128,600 dwellings in Greater Geelong by 2051 has been set by the Victorian government. Geelong's close proximity to Melbourne's CBD, airports, ports and freeways eases accessibility to and from the region and offers businesses an enticing proposition enabling them to relocate or scale their operations, while benefiting from the area's growing skilled workforce and steady dynamic economy."
One business looking to capitalise on the opportunities Geelong presents is Gouge Linen and Garment Services, a leading linen and garment cleaning service in Australia. It has expanded from a regional service headquartered in Shepparton to a statewide operation, securing major contracts and expanding its facilities, including the opening of distribution centres in Ballarat, Melbourne and Bendigo.
"The business now employs 480 staff to service seven locations across Victoria, and is working towards further expansion," said Rob Priestly, Gouge Linen's co-owner and Director. "Lots of thought and planning has gone into our new plant in Geelong and we are finally executing on those plans with help from CBA. There are lots of exciting growth opportunities for us from the platform of a second major plant and the start of early production is imminent."
The company has a history of providing opportunities to migrants and refugees looking to enter the workforce and hopes to continue this initiative when the new plant opens. "The business sees the benefit and the value of the workforce, and the business support you get from being located in a regional economy that allows us to grow and service a metropolitan market as well," added Mr Priestly.
Sydney continued to record the largest net outflows of all capitals (64 per cent), with regional New South Wales securing the biggest share of regional area net inflows at 40 per cent. Regional Queensland's share of net inflows fell to 17 per cent, down from 30 per cent in the March quarter of 2024; whereas regional Tasmania's net inflows went from a -3 per cent share a year ago to 3 per cent in the first quarter of the year.
While the Sunshine Coast and regional Queensland's share of movers dropped this quarter, the state remains popular with those relocating regionally with destinations such as the Gold Coast, Townsville, Gladstone, Gympie and Fraser Coast all making various hot spot lists.
"Queensland's warmer climate and generally more affordable housing in regional locations ensures that it remains a magnet for movers from Sydney and Melbourne," said Mr Foster.
"The growth in migration to the state is also due to significant investments in large industrial infrastructure projects related to resources and renewables like the CopperString 2032 project set for completion in 2029. This initially involves building 840km of new electricity transmission line from Mount Isa to near Townsville, generating employment and economic opportunities throughout North Queensland, and will connect Queensland's North West Minerals Province to the National Electricity Market for the first time in Australia's history.
"For over 110 years, CBA has played an active role in contributing to the livelihoods of our country's thriving regions and we continue to support the everyday banking needs of local communities and businesses. By partnering with customers to unlock funding for future projects we aim to create sustained growth," added Mr Foster.
Movement was not restricted to the eastern seaboard however, with Victor Harbour in South Australia recording strong interest from regional movers, and Denmark and Harvey in Western Australia remaining popular with both regional and city movers alike.
"Regional Australia's population is now sitting at 9.91 million people, and this data indicates that number will continue to grow," Ms Ritchie said.
"It's imperative that regional Australia is on the radar of decision-makers at all levels. There are big economic gains to be made by supporting, facilitating and nurturing growth across the regions. Those benefits can only be achieved though, by ensuring communities have the infrastructure, facilities, funding and support they need to continue to welcome all those who are actively choosing a regional life."
The RMI is a partnership between the RAI and CBA, which analyses the quarterly and annual trends in people moving to and from Australia's regional areas.
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