Explosive Growth: Australia's Fastest-Developing Capital City

what is the fastest growing capital city in australia

Australia's population grew by 659,800 people (2.5%) to 26.8 million people in the year leading up to September 2023. The national population increased from 19.7 million to 26.6 million over two decades, ending in June 2023, a growth rate of 35%. Of the state capitals, Perth and Brisbane had the highest population growth rate, with Perth being the fastest-growing capital city over the last 20 years.

Characteristics Values
Fastest-growing capital city over the last 20 years Perth
Total population of Perth in June 2023 2,190,944
Percentage of the state population represented by Perth 76%
Population growth rate of Perth 53%
Population growth of Perth in numbers 81,318
Population growth rate of Perth in % 3.1%
Second-fastest growing capital city over the last 20 years Brisbane
Population growth rate of Brisbane 52%
Population growth of Brisbane in numbers 72,900
Population growth rate of Brisbane in % 3.1%
Third-fastest growing capital city over the last 20 years Sydney
Population growth of Sydney in numbers 107,500
Population growth rate of Sydney in % 2.0%
Fourth-fastest growing capital city over the last 20 years Adelaide
Population growth rate of Adelaide 23%
Population growth of Adelaide in numbers 28,100
Population growth rate of Adelaide in % 2.0%

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Perth: fastest-growing capital city over 20 years

Perth, the capital of Western Australia, was the country's fastest-growing capital city over the last 20 years. It had a population of 2,190,944 in June 2023, representing 76% of the state. During this period, Perth experienced two property booms, one at the start and one at the end of the 20 years.

Perth's growth can be attributed to its appeal as a beautiful place to live. However, its property market performance is closely linked to the state's export revenue, particularly from China. In 2023, Western Australia received $130 billion from China, accounting for 45% of Australia's total exports and contributing $260 billion to the state's economy.

While Perth's median house price in 2020 slipped back to the same value as 14 years earlier due to a downturn in Chinese purchases, the city's high growth rate of 3.1% in 2023-24 and 3.6% in 2024 has been notable. This growth rate far outshines other capital cities like Melbourne and Brisbane, which had growth rates of 2.7% and 3.1% respectively in 2023-24.

Perth's growth has also influenced the regional city of Mandurah, which has attracted a net gain of 30,000 people, largely from Perth and the UK. This makes Mandurah the nation-leading growth rate in Western Australia. Perth's overall ranking as the 16th fastest-growing city in Australia underscores its dynamic expansion over the last two decades.

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Melbourne: largest population increase

Melbourne has experienced dynamic population growth, evidenced by a significant increase of 167,484 people, outpacing other Australian cities. This surge translates to a 3.3% growth rate, second only to Perth's 3.6%. Melbourne's expansion is attributed to a substantial net overseas migration of 146,772 individuals, complemented by 27,390 new births, despite a minor internal migration loss of 6,678 people.

Melbourne's population boom is particularly evident in its suburbs. Melton, situated on the western outskirts, boasts a remarkable growth rate of 6.6%. Similarly, the inner-city areas of Yarra and Port Phillip have witnessed impressive growth, with rates of 5.5% and 5.2%, respectively. Fraser Rise-Plumpton, located northwest of Melbourne's CBD, has experienced a staggering 267% population increase, translating to 3,400 additional people.

Melbourne's allure to migrants is evident in the data, showcasing its appeal as a desirable destination for those seeking new opportunities. This influx has contributed significantly to the city's overall population increase.

While Melbourne has experienced a notable population increase, it is important to acknowledge that other cities, such as Perth, have achieved higher growth rates. Perth's population growth rate of 53% over 20 years is impressive, and it ranked 16th fastest overall. However, when considering the sheer number of people, Melbourne takes the lead, showcasing its ability to attract and accommodate a substantial number of new residents.

In summary, Melbourne's population increase of 167,484 people is a testament to its attractiveness and capacity for expansion. This growth has been driven by a combination of overseas migration, new births, and, to a lesser extent, internal migration dynamics. Melbourne's suburbs have played a significant role in this expansion, with areas like Melton, Yarra, and Port Phillip, and Fraser Rise-Plumpton experiencing notable population surges.

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Sydney: third-largest population increase

Sydney, Australia's largest city, experienced a notable population increase of 1,287,922 people over the past two decades, representing a 31% growth rate. This substantial growth positions Sydney as the third-largest contributor to population increase among Australia's capital cities.

While Sydney's population growth is impressive, it is worth noting that internal migration to the city has declined over the last 20 years. Despite this, Sydney remains a popular destination for international migrants, with net overseas migration contributing positively to its population increase. The city's outer areas, particularly in the north-west and south-west, have witnessed significant growth.

One of the key drivers of Sydney's population increase is the appeal of its inner-city suburbs. For instance, Ultimo, an inner-city suburb, has experienced a 19% growth in residents, making it the third-fastest-growing area in the state. This trend suggests that people are drawn to the convenience and attractions of living close to the city centre.

The population growth in Sydney has had a significant impact on the city's infrastructure. To accommodate the increasing number of residents, Sydney has seen a rise in high-density living, with a decrease in the proportion of detached houses. This shift in housing dynamics is a notable consequence of the city's growing population.

In summary, Sydney's position as Australia's largest city, combined with its appeal to international migrants and the popularity of its inner-city suburbs, has resulted in a substantial population increase. This growth has influenced the city's infrastructure, leading to a higher proportion of high-density housing developments. Sydney's ongoing expansion showcases its attractiveness as a destination for those seeking urban living in Australia.

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Brisbane: third-fastest growing LGA

Brisbane is the third-fastest growing Local Government Area (LGA) in Queensland, with a growth rate of 3.1%. Brisbane is also the only state capital city with its respective LGA (City of Brisbane) covering a significant portion of its urban area. In the 20 years ending in June 2023, Brisbane had a population growth rate of 52%, second only to Perth among state capitals.

In the 2023-24 financial year, Brisbane's population increased by 72,900, behind only Melbourne and Sydney. However, Brisbane's growth rate of 2.7% was higher than both Melbourne and Sydney, which had identical growth rates of 2.5%.

Brisbane's growth can be attributed to interstate and overseas migration, as well as an increasing number of international students. The Sunshine State, of which Brisbane is the capital, experienced continuous population growth during the COVID-19 pandemic and continues to grow strongly.

With a population of 1.3 million people, Brisbane is Australia's largest LGA, approximately double the size of the second-largest. Brisbane's large population means that it often tops the list for the "largest" growth in terms of the number of people, but rarely the "fastest" in terms of growth rate.

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Adelaide: fastest growth in South Australia

While Perth has been the fastest-growing capital city in Australia over the last 20 years, Adelaide has experienced the fastest growth in South Australia.

According to the Australian Bureau of Statistics (ABS), in the 2022-23 financial year, the population of Greater Adelaide increased by 28,100 people (2.0%), while the rest of South Australia saw an increase of 3,000 people (0.7%). This growth in Adelaide was largely due to overseas migration, which accounted for 26,471 people, and a small number of new births (3,404).

The city centre of Adelaide witnessed a notable increase of 1,400 people (7.5%) as individuals returned to the city following the mass exodus during the COVID-19 pandemic. The northern suburbs of Adelaide, including Munno Para West - Angle Vale, experienced significant growth due to projected developments in the area, which are expected to boost the population by 1,800 people. Additionally, the outer north areas of Virginia and Waterloo Corner saw a population increase of 7.5%, with projections indicating that growth will continue in the near future.

Adelaide's coastal suburbs have also experienced remarkable growth, with areas like Kingston Park, Seacliff, Maslin Beach, and South Brighton witnessing substantial increases in house prices. Kingston Park, in particular, has seen a 267.5% growth over five years, contributing to Adelaide's reputation as an increasingly desirable place to live.

While Adelaide has experienced overall growth, it is important to note that internal migration within the city has declined over the last 20 years, a trend observed in other capital cities like Sydney, Melbourne, and Darwin.

Frequently asked questions

Perth is the fastest-growing capital city in Australia, with a population growth rate of 3.1% to 3.6% in 2023-24.

Melbourne is the second fastest-growing capital city in Australia, with a growth rate of 2.7% to 3.3% in 2023-24.

Brisbane is the third fastest-growing capital city in Australia, with a growth rate of 2.7% in 2023-24.

Hobart is the slowest-growing capital city in Australia, with a growth rate of 0.5%.

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