Aussie capital city growth slows as migration eases

Grafa
Economy
Aussie capital city growth slows as migration eases
Aussie capital city growth slows as migration eases
Liezl Gambe
Written by Liezl Gambe
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Australia's metropolitan expansion has hit a speed bump, with new data from the Australian Bureau of Statistics revealing a sharp deceleration in capital city growth.

Despite adding nearly 325,000 residents during the 2024–25 financial year, the pace of urbanisation has cooled considerably compared to the record-breaking surges of the previous 12 months.

According to figures, the combined population of Australia’s capital cities grew by 1.8%, a dip from the 2.3% increase recorded in 2023–24.

ABS data

Phil Browning, the ABS head of demography, noted that while the cities added 324,700 people, this figure represents a shortfall of nearly 100,000 residents compared to the prior year's intake.

The slowdown is largely attributed to a cooling in net overseas migration, which, despite remaining the primary engine of growth, fell by 109,400 people year-on-year.

Western Australia continues to lead the nation’s charts, with Perth recording the highest growth rate at 2.4%, followed by Brisbane at 2.1% and Melbourne at 2%.

Conversely, Darwin emerged as the only capital to buck the national trend, accelerating its growth to 1.7%.

Browning highlighted that the most robust gains were concentrated in outer-suburban "fringe" areas, fuelled by internal migration.

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