Recently released demographic data from the Australian Bureau of Statistics (ABS) has shown that interstate migration has continued to trend lower, a report from CoreLogic RP Data shows.
For the quarter to September 2014 there were 70,789 interstate movements by Australian residents, which represents the fewest interstate movements since December 1993 quarter when there were 70,445 movements.
The differing levels of migration in each state continue to reflect the economic drivers as well as the status of the capital city housing markets.
New South Wales over the past 12 months had a net loss of 6,305 residents which was actually the lowest on record.
Victoria had a near record gain of 8,455 residents continuing a strong net migration trend.
Queensland gained 5,942 residents from interstate migration. Arrivals have been trending lower for the past 10 years while departures are currently at an elevated level.
Commenting on the ABS data, CoreLogic RP Data senior analyst Cameron Kusher said, “There is a stark contrast between the mining and non-mining states when it comes to demographic factors.
“Interstate migration has been trending lower in the mining states and higher in the non-mining states - a similar trend can be seen in the rate of overseas migration as well; fewer migrants translates to less demand for housing.
“The rate of interstate migration varies greatly on a state-by-state basis however, the rate of net interstate migration is at a record high in Vic and the net loss in NSW is at a record low.
“This means a higher proportion of residents are staying in these states and this is clearly having an impact on capital city housing markets in these two states. On the flip-side, Qld and WA have typically been the benefactors of the outflow of population from NSW and Vic and are now feeling the effects of lower net interstate migration which can be attributed to fewer employment opportunities as construction of large mining related infrastructure projects wind down,” Mr Kusher said.
[tweet_dis]Meanwhile, ABS building approvals for February 2015 show year-on-year dwelling approvals have increased by 14.3%[/tweet_dis] however, the growth is emanating from the unit sector (+34.5%) as opposed to houses (0.0%). Over the 12 months to February 2015 there were a record high 205,929 dwelling approvals nationally which was 10.4% higher than over the same period in 2014. The proportion of approvals nationally that were for units were equal to their record high over the past year at 44.3%.