NQ can leverage migration popularity into housing investment, economists say

Economists say Townsville can leverage its status as Australia’s top regional migration centre to draw much-needed investment in housing. Here’s how.

Economists say Townsville can cash in on high migration to the city with investment in housing.

Regional Economic Advisory and Offermans published their quarterly economic snapshot report for Northern Queensland on Friday.

“The Northern regional economy has continued its recent wave of growth. Balanced against surging in-migration are increasing signs that higher borrowing rates and retreating commodity prices are beginning to impact sentiment,” they say in the report.

Townsville had the highest increase in net internal migration inflows in the year to March.

CommBank and Regional Australia Institute data found Townsville had the highest increase in net internal migration inflows in the year to March.

An institute spokeswoman could not give actual numbers because of confidentiality, but Townsville saw a 520 per cent increase in the number of Australians migrating to the region.

That migration should be capitalised on, Regional Economic Advisory and Offermans say.

Citing Queensland Government Statistician’s Office figures, the report says in the 2021-22 year, Northern Queensland had a net population growth of 1.4 per cent, to 240,758.

“Townsville has the opportunity to leverage its status as Australia’s top regional in-migration centre to further increase its profile and draw much-needed investment in housing.”

Melbourne’s population decreased by 3500 in 2021, after 262 days of lockdowns in 2020 and 2021. Picture: NCA NewsWire / Ian Currie

North Queensland’s population increase was 1406 people as a result of births and deaths, 1166 from net domestic migration and 734 net international migration.

The report also signals the trend of people leaving the capital cities because of the Covid-19 pandemic may not have an ongoing influence.

“It remains to be seen whether the drivers of internal migration to the regions (affordability, lifestyle, increased acceptance of remote working) will continue to drive patterns without the key catalyst of Covid-19 lockdowns in metropolitan areas.

“There will be an inevitable move back to major capital cities, which are critically short-staffed and have obvious scale benefits for larger organisations. However, the opportunities within the regions that Covid-19 has highlighted will not dissipate entirely,” it says in the report.

A global trend of decreased birthrates will also have an effect, the economists say.

“Against a global backdrop of plummeting fertility rates, relying on an increasing population as a main source of growth will become increasingly difficult over the medium-longer term.”

Retaining people and maximising economic activity will therefore become critical, it says in the report.

Originally published as NQ can leverage migration popularity into housing investment, economists say