New migration patterns drive property trends
Australia’s overseas-born population has reached its highest proportion in more than 130 years, with India overtaking England as the top country of origin for the first time – a shift already reshaping housing demand across major cities.
According to the Australian Bureau of Statistics, one-third of people living in Australia were born overseas in the 2024–25 financial year – the highest share recorded since 1891. The overseas-born population grew by 258,000 people in a single year.
India leads, England slips
India is now the largest source country, with 971,020 Indian-born people living in Australia, representing 3.5% of the total population. That figure rose by 54,690 – a 6% increase – compared with the previous year.
England, long the dominant country of origin, has slipped to second place for the first time, with 970,950 English-born residents. Its numbers have been declining since 2013. China ranked third at 731,540, followed by New Zealand at 637,680, and the Philippines at 412,530.
REA Group senior economist Anne Flaherty said the demographic changes carry direct implications for the property market.
“Seeing more people coming in from certain countries gives you a signal about the areas that are more likely to see more housing demand,” she said.
Where migrants settle
ABS regional population data show that inner-city, high-density suburbs recorded the largest increases in net overseas migration. Carlton in Melbourne led all suburbs with a net gain of 1,787 people, followed by Melbourne CBD–North at 1,305 and Sydney’s Haymarket at 1,258.
Flaherty noted that these areas tend to cluster around universities and employment hubs.
“For people coming to Australia to study or who might be looking for work, they’re going to want to be in a location where they can easily access their university or workplace,” she said.
Leading location preferences
Data from PropTrack, covering the 12 months to March 2026, show distinct suburb preferences by country of origin. India-based buyers gravitated towards Sydney’s CBD and Melbourne’s outer suburbs, particularly Tarneit, Point Cook, and Craigieburn.
Ray White Tarneit sales director Mike Sarupria said roughly 90% of his buyers were of Indian descent.
“Their friends and family in the past have moved here, so they feel comfortable staying close to them,” he said. “They still want that community feel.”
UK-based buyers focused on Melbourne’s inner south-east, including South Yarra, Prahran, and Richmond, while renters from Britain favoured beachside Sydney suburbs such as Bondi and Coogee. Chinese buyers concentrated on Melbourne’s eastern suburbs, including Balwyn, Glen Waverley, and Camberwell.
