Australia’s population growth rate ranks among the highest in the developed world, with net overseas migration (NOM) serving as the primary driver of this growth. For property investors, understanding the origins of new Australian residents can provide an insight into future housing demand.
Australia’s Migration Boom: The Numbers
Recent data shows a significant surge in migration. According to the Australian Bureau of Statistics (ABS), net overseas migration accounted for approximately 80% of total annual population growth in the year to September 2024 (latest data as of May 2025), with net overseas migration reaching 379,829 people over those 12 months.
Top Source Countries: Where Are Migrants Coming From?
Australia’s migrant landscape has shifted over the past two decades. Back in 2004, the United Kingdom led as the primary source of new migrants (22,470 people), followed by China (19,090), New Zealand (16,870) and India (16,340). The remaining top ten featured a geographically diverse mix—Sudan, South Africa, South Korea, the Philippines, Malaysia, and the USA.
Today’s picture looks quite different. India now leads by a substantial margin with 72,360 migrants—more than triple its 2004 numbers. China remains one of the main countries of origin with 49,720 new Australian residents – although the volume of migration has increased by 260% since 20 years ago. The Philippines has climbed to third position (32,570), overtaking both New Zealand (23,620) and the UK (21,200), which has dropped to fifth. The remaining top ten is now dominated by Asian nations—Vietnam, Nepal, Sri Lanka, Pakistan, and Indonesia—completely replacing previous African and American sources in the top ten.
The last 20 years have seen Australia’s migration profile pivot decisively toward Asia, with India and China leading the charge and a diverse range of Asian countries now featuring prominently. This shift reflects broader geopolitical and economic changes reshaping modern Australia’s demographic makeup.
Where Do New Migrants Go When Arriving in Australia?
New South Wales leads as the top destination state, accounting for 32% (equal to 142,473 people) of total net overseas migrants. Victoria follows closely at 30%.
Migrants overwhelmingly prefer capital cities over regional areas, with 84% of net migrants settling in these urban centres.
New migrants tend to land in areas of the capital cities with the highest density of residential dwellings and job opportunities. For example, in Greater Sydney the city council’s of inner Sydney, Parramatta, and Cumberland, get the majority of new migrants.
Conclusion
Today, Australia’s record population growth is primarily driven by migration from India, China, and other countries with relatively high populations. For property investors, these trends indicate that demand for rental housing in certain regions will remain in high demand for the foreseeable future.
Key Takeaways for Investors:
- Net overseas migration accounts for approximately 80% of Australia’s total population growth, with migration reaching 379,829 people in the year to September 2024.
- India has firmly established itself as Australia’s top source country for migrants, with India and China together contributing 27% of Australia’s total migration intake.
- New South Wales (32%) and Victoria (30%) attract the majority of overseas migrants, with 84% of all migrants settling in capital cities rather than regional areas.
- Key hotspot LGAs align with established urban communities, with Brisbane, Melbourne, and Sydney LGAs receiving the largest share of overseas migrants.
- For property investors, understanding migration patterns provides valuable insight for identifying high-demand rental markets and areas with strong potential for capital growth.
