Urban Exodus Reverses as Australians Return to City Living
After years of the much-discussed “sea change” and “tree change,” where Australians left cities for quieter, nature-rich regional areas, a significant shift is now bringing them back to urban centers. This trend reversal, highlighted in a new report from the Property Tribune, titled “The Death of the Sea Change,” suggests a growing preference for urban living due to various social and economic factors.
Qi Chen, CEO and Co-founder of OpenLot, discusses the resurgence in city living and its implications. “In 2022, it seemed like everyone was eager to leave the cities behind, but our analysis of the latest Australian Bureau of Statistics data for FY24 shows a clear shift back to urban areas,” says Chen. This migration is reflected in housing approval numbers, with capital cities dominating new house approvals, and regional areas experiencing a slowdown.
The Draw of Urban Amenities and Opportunities
The allure of remote work in regional settings has faded, according to Chen. “People want to be close to the amenities and opportunities that cities provide,” he explains. This sentiment is underscored by the significant increase in new house approvals in cities such as Perth, which saw a 24.6% surge, compared to a 1.1% decline in Western Australia’s regional areas.
This shift also highlights a growing concern about the sustainability of living in less developed areas. For instance, in Sydney’s west, the small two-lane country road of Fifteenth Avenue struggles to support the influx of new residents, creating daily traffic jams and signaling a need for better infrastructure.
Infrastructure and Housing Supply Challenges
While new infrastructure projects like Sydney’s Metro, which cost $21.6 billion and saw 55,000 passengers on its second day, are enhancing accessibility to new housing markets, there’s a significant gap in necessary services. “Our data shows that while there is no shortage of new housing being built, there is a significant gap when it comes to the services that make these areas liveable,” Chen notes.
Looking Ahead: The Future of Urbanisation
As the trend towards urbanisation continues, regions that were once booming with new developments, like Ballarat and Mornington Peninsula, are now seeing double-digit declines in new approvals. “The sea change/tree change is losing steam, and without significant improvements in new supply, I don’t see that changing anytime soon,” predicts Chen.
As Australia’s housing market shifts back to the cities, the challenge remains to ensure that infrastructure can support this growth. The demand for urban living is there, but as Chen concludes, “The question is: are we prepared to meet it?”
This analysis not only points to a cyclical nature of living preferences influenced by economic conditions and lifestyle choices but also stresses the importance of planning and infrastructure development to accommodate shifting population dynamics.
References:
Melissa Fisher
Founder, Acuity Development Group & The Right Team