Aussies are packing up and flocking to the southern reaches of the country, with new research showing parts of regional Tasmania and Victoria are emerging as new migration hotspots.
House prices have also risen in the suburbs within these growth hotspots, with house prices rising as much as 24% in the past year.
Victoria’s Wodonga Local Government Area (LGA) recorded the strongest growth in net migration over the 12 months to September 2025 compared to the same period in 2024, according to the latest Regional Movers Index.
The index, published by the Regional Australia Institute (RAI) and the Commonwealth Bank of Australia, showed the Latrobe, Devonport and Huon Valley LGAs in Tasmania’s north-west followed Wodonga in net migration growth. Colac-Otway in Victoria completed the top five.
RAI chief executive Liz Ritchie said more Australians were opting for cooler climates.
“We are seeing interesting movements across the southern states, with Victoria’s Wodonga having the strongest annual net migration growth, while three Tassie places – Latrobe, Devonport and Huon Valley – are in second to fourth place,” she said.
“Grouped together, these areas saw a fivefold increase in net migration in 12 months.”
Commonwealth Bank general manager of regional and agribusiness banking Kylie Allen said North West Tasmania is positioning itself as a growth region, with continued investment in infrastructure upgrades and economic development initiatives.
“Combined with a strong base of established industries, particularly the agricultural sector, strategic port position and easy access to Tasmania’s stunning landscapes, the region is an increasingly attractive place to work, live and invest,” she said.
Trek to Tassie
Harcourts Devonport and Shearwater real estate agent Cordell Richardson said people were moving to places in Tasmania’s northwest for cooler climates and a more relaxed way of life.
“We’re seeing people from Queensland coming to Tasmania and Tasmanians coming to Queensland for a change in climate,” he said.
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Source: Regional Movers Index
“Often people are looking to escape the hot weather and move to a cooler climate and a slower pace of life.”
He said many interstate movers were also attracted to the state’s northwest because there were affordable coastal properties that offered a relaxed lifestyle.
Mr Richardson said infrastructure upgrades at the Spirit of Tasmania ferry terminal in Devonport were also attracting property investors to the area.
“We are seeing a huge influx of mainland buyers wanting to grab a piece of Devonport,” he said.
“Smart investors saw what happened in Geelong when they moved the port there, they saw the growth there, and they expect that potential growth to happen in Devonport.”
According to PropTrack, the average house price in East Devonport increased by 21.5% to $480,000 in the 12 months to December.
In nearby Port Sorell, the average house price has also risen significantly, by as much as 24.5% to $755,000 over the same period.
Port Sorell is located in Tasmania’s Latrobe LGA, next to neighboring Hawley Beach, where house prices have risen 11.9% in the past year to $940,000.
John Price, estate agent at Roberts Shearwater, said the neighboring areas of Port Sorell, Hawley Beach and Shearwater had seen extraordinary population growth over the past decade.
“Initially our area was the Florida of Tasmania, where all the retirees came,” he said.
“But over the past decade since the primary school was established, population growth for permanent residents has been extraordinary.”
Mr Price said the area offered a slower lifestyle, quality services including hospitals and schools, and proximity to Devonport Airport and Spirit of Tasmania ferries.
“We have all the advantages of proximity to major centers, but we don’t have high crime rates and other disadvantages,” he said.
People are flocking to regional Victoria
Wodonga in Victoria may have been the best LGA for annual growth in the latest index, but it wasn’t a huge surprise.
Albury, which borders Wodonga on the other side of the NSW-Victoria border, was also in the top five LGAs in the country for annual growth in the previous index for the year to June 2025.
Ms Allen said Wodonga and neighboring Albury are seeing investment and infrastructure developments in transport, education, healthcare and defence.
People are flocking to Wodonga on the Victoria-NSW border. Photo: Getty
“We have seen our own business customers benefit from an increase in trade due to the influx of new residents, and other businesses moving into different areas and diversifying to meet the new demand,” she said.
“While the outlook is positive, attracting and retaining skilled professionals remains a challenge across all regional areas.”
Wodonga’s average house price rose 12.1% to $600,000 over the year to December.
It comes as Queensland’s Sunshine Coast retained its position as Australia’s most popular destination with the largest share of net internal migration during the year to September 2025, followed by Geelong in Victoria and Lake Macquarie in NSW.
This four-bedroom house at 23 Inwood Crescent in Wodonga sold earlier this month for $671,200. Image: realestate.com.au/sold
Australians continued to swap city skylines for regional horizons, with moves from capital cities to regional areas exceeding moves in the opposite direction by more than a third.
People from the capital cities made up the bulk of net migration to the regions, led by people from Sydney and Melbourne.
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