Aussies are packing up and moving in droves to the southern reaches of the country, with new research revealing pockets of regional Tasmania and Victoria are emerging as new migration hotspots.
Home prices have also been on the rise in suburbs within these growth hotspots, with house prices rising as much as 24% over the past year.
The Wodonga local government area (LGA) in Victoria recorded the strongest growth in net migration during 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 Commonwealth Bank of Australia, showed the Latrobe, Devonport and Huon Valley LGAs in northwest Tasmania followed Wodonga in net migration growth. Colac-Otway in Victoria rounded out the top five.
RAI chief executive Liz Ritchie said an increasing number of Australians were opting for cooler climates.
“We are seeing interesting moves in the southern states with Victoria’s Wodonga seeing the strongest annual net migration growth, while three Tassie spots – Latrobe, Devonport and Huon Valley – ranked second to fourth,” she said.
“Grouped together, these areas saw a five-fold increase in net migration over 12 months.”
Devonport in Tasmania's northwest has seen an influx of people move into the area. Picture: Getty
Kylie Allen, Commonwealth Bank’s executive general manager of regional and agribusiness banking, said northwest Tasmania was positioning itself as a growth region, with ongoing investment in infrastructure upgrades and economic development initiatives.
“Coupled with a strong base of established industries, particularly the agriculture sector, its strategic port position, and easy access to Tasmania’s stunning landscapes, the region is an increasingly compelling place to work, live and invest,” she said.
Trekking to Tassie
Cordell Richardson, real estate agent at Harcourts Devonport and Shearwater, said people were moving to places in Tasmania’s northwest for cooler climates and a more relaxed way of life.
“We see people from Queensland coming to Tasmania and Tasmanians going to Queensland for a change in climate,” he said.
Source: Regional Movers Index
“A lot of the time, people are trying to escape the hot weather and want to move to a cooler climate and slower pace of life.”
He said many interstate movers were also attracted to the state’s northwest because it had affordable coastal properties offering relaxed lifestyles.
Mr Richardson said the Spirit of Tasmania ferry terminal infrastructure upgrades happening in Devonport were also attracting property investors to the area.
"We’re seeing a massive influx of mainland buyers looking to snatch up a piece of Devonport,” he said.
“Savvy investors saw what happened in Geelong when they moved the port there, they saw the growth there, and they’re expecting that potential growth to happen in Devonport.”
The median house price in East Devonport has soared 21.5% to $480,000 during the 12 months to December, according to PropTrack.
In nearby Port Sorell, the median house price has also jumped significantly, up a staggering 24.5% to $755,000 during the same period.
Port Sorell is located in Tasmania’s Latrobe LGA, alongside neighbouring Hawley Beach, where house prices have risen 11.9% to $940,000 over the past year.
John Price, real estate agent at Roberts Shearwater, said the neighbouring Port Sorell, Hawley Beach and Shearwater areas had seen extraordinary population growth over the past 10 years.
“Initially, our area was the Florida of Tasmania, where all the retirees came to,” he said.
“But in the last 10 years since the primary school was put in, the 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 the Devonport airport and Spirit of Tasmania ferries.
Last month, the three-bedroom house at 4 Parkers Ford Road, Port Sorell changed hands for $750,000. Picture: realestate.com.au/sold
“We’ve got all the benefits of being close to major centres, but we don’t have high crime rates and other disadvantages,” he said.
People flock to regional Victoria
Wodonga in Victoria may have been the top LGA for annual growth in the latest index, but it wasn't a major surprise.
Albury, which neighbours Wodonga on the other side of the NSW-Victoria border, also made 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 neighbouring Albury were seeing investment and infrastructure developments across transport, education, health and defence.
People have been flocking to Wodonga on the Victoria-NSW border. Picture: Getty
“We’ve seen our own business customers benefit from an uplift in trade due to the inflow of new residents, and other businesses pivot and diversify into different areas to meet new demand,” she said.
“While the outlook is positive, attracting and retaining skilled professionals remains a challenge across regional areas.”
Wodonga’s median house price jumped 12.1% to $600,000 during 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 greater Geelong in Victoria and Lake Macquarie in NSW.
This four-bedroom house at 23 Inwood Crescent in Wodonga sold for $671,200 earlier this month. Picture: realestate.com.au/sold
Australians continued to swap city skylines for regional horizons, with relocations from capital cities to regional areas outpacing moves in the opposite direction by more than a third.
Capital city folks made up the bulk of the net migration to the regions, led by people from Sydney and Melbourne.
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